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.
Starbucks (NASDAQ:SBUX) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, community ranking, profitability, media sentiment, valuation and analyst recommendations.
Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.2%. Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. 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. Yum! Brands pays out 54.4% of its earnings in the form of a dividend. Starbucks has increased 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 28 more articles in the media than Yum! Brands. MarketBeat recorded 65 mentions for Starbucks and 37 mentions for Yum! Brands. Starbucks' average media sentiment score of 1.11 beat Yum! Brands' score of 0.77 indicating that Starbucks is being referred to more favorably in the media.
72.3% of Starbucks shares are owned by institutional investors. Comparatively, 82.4% of Yum! Brands shares are owned by institutional investors. 0.1% of Starbucks shares are owned by company insiders. Comparatively, 0.3% of Yum! Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Starbucks currently has a consensus price target of $105.33, indicating a potential downside of 6.71%. Yum! Brands has a consensus price target of $147.37, indicating a potential downside of 1.21%. Given Yum! Brands' higher possible upside, analysts clearly believe Yum! Brands is more favorable than Starbucks.
Starbucks received 1033 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 76.37% of users gave Starbucks an outperform vote while only 64.74% of users gave Yum! Brands an outperform vote.
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.
Starbucks has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Yum! Brands has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Summary
Starbucks beats Yum! Brands on 12 of the 22 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
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 2/21/2025 by MarketBeat.com Staff
