YUM vs. SBUX, CMG, DRI, DPZ, TXRH, EAT, WEN, CAKE, PZZA, and CBRL
Should you be buying Yum! Brands stock or one of its competitors? The main competitors of Yum! Brands include Starbucks (SBUX), Chipotle Mexican Grill (CMG), Darden Restaurants (DRI), Domino's Pizza (DPZ), Texas Roadhouse (TXRH), Brinker International (EAT), Wendy's (WEN), Cheesecake Factory (CAKE), Papa Johns International (PZZA), and Cracker Barrel Old Country Store (CBRL). These companies are all part of the "restaurants" industry.
Yum! Brands vs.
Yum! Brands (NYSE:YUM) and Starbucks (NASDAQ:SBUX) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, media sentiment, earnings, institutional ownership, risk, valuation and community ranking.
Yum! Brands has a net margin of 19.68% compared to Starbucks' net margin of 9.73%. Yum! Brands' return on equity of -20.33% beat Starbucks' return on equity.
Starbucks has higher revenue and earnings than Yum! Brands. Yum! Brands is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Yum! Brands has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Yum! Brands presently has a consensus target price of $151.79, suggesting a potential downside of 2.58%. Starbucks has a consensus target price of $106.12, suggesting a potential upside of 10.87%. Given Starbucks' stronger consensus rating and higher possible upside, analysts clearly believe Starbucks is more favorable than Yum! Brands.
82.4% of Yum! Brands shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 0.3% of Yum! Brands shares are held by insiders. Comparatively, 0.1% of Starbucks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 1.8%. Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.5%. Yum! Brands pays out 54.4% of its earnings in the form of a dividend. Starbucks pays out 78.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Starbucks has raised its dividend for 15 consecutive years. Starbucks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Starbucks had 17 more articles in the media than Yum! Brands. MarketBeat recorded 67 mentions for Starbucks and 50 mentions for Yum! Brands. Starbucks' average media sentiment score of 1.22 beat Yum! Brands' score of 0.86 indicating that Starbucks is being referred to more favorably in the news media.
Starbucks received 1034 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 76.39% of users gave Starbucks an outperform vote while only 64.53% of users gave Yum! Brands an outperform vote.
Summary
Starbucks beats Yum! Brands on 13 of the 22 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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Media Sentiment Over Time
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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This page (NYSE:YUM) was last updated on 3/25/2025 by MarketBeat.com Staff
