Restaurants · 17/36 against 15/36 checks · to 2026-09-08
CMG vs SBUX.
ChipotleRuns Chipotle, a fast-casual chain that owns rather than franchises its restaurants.
StarbucksRuns and licenses coffee shops worldwide, and sells packaged coffee.→Chipotle (CMG) and Starbucks (SBUX) are within reach of each other at $46.8B and $116.3B, and on the filings Chipotle passes more, 17 checks of 36 against 15.
Which passes more checks?
widest gap first→No axis separates them by more than 2 of six checks, and the widest is Quality.
| CMG | SBUX | |
|---|---|---|
| Quality | 6/6 | 4/6 |
| Growth | 2/6 | 1/6 |
| Health | 2/6 | 3/6 |
| Shareholder returns | 3/6 | 4/6 |
| Trend analysis | 3/6 | 2/6 |
| Value | 1/6 | 1/6 |
| All checks | 17/36 | 15/36 |
→Starbucks turns over $38.3B to Chipotle's $12.4B, 3.1 times as much. Chipotle keeps 11.4% of revenue as profit against 5.2% at Starbucks.
Which keeps more of each sale?
→Chipotle keeps more of each sale: operating margin of 14.7% against 7.8%, a gap of 7 points that flows into everything below it.
| CMG | SBUX | |
|---|---|---|
| Gross margin | - | 77.6% |
| Operating margin | 14.7% | 7.8% |
| Return on equity | 64.5% | - |
Which is growing faster, CMG or SBUX?
→Chipotle grew revenue faster last year, +7.3% against +4.5% at Starbucks - 3 points apart.
| CMG | SBUX | |
|---|---|---|
| Revenue (TTM) | $12.4B | $38.3B |
| Revenue growth, 1 year | +7.3% | +4.5% |
| Revenue CAGR, 3 years | +11.4% | - |
| Net income (TTM) | $1.4B | $2.0B |
| Free cash flow (TTM) | $1.6B | $3.6B |
Which balance sheet is stronger?
| CMG | SBUX | |
|---|---|---|
| Debt / equity | - | - |
| Interest coverage | - | 5.4x |
| Cash and short-term investments | $678M | $3.6B |
Which hands more back to owners?
→Starbucks pays 2.4% at today's price and Chipotle effectively pays nothing, which is the clearest difference in what each hands back.
| CMG | SBUX | |
|---|---|---|
| Dividend yield | - | 2.4% |
| Payout ratio | - | 139.8% |
| Years of unbroken dividend | - | - |
Which is cheaper?
→Chipotle is the cheaper of the two on earnings, 35.0x against 58.6x. Against their own histories, Chipotle is below its 61.2x median and Starbucks is above its 25.3x.
| CMG | SBUX | |
|---|---|---|
| Share price | $36.96 | $102.01 |
| Market cap | $46.8B | $116.3B |
| P/E | 35.0x | 58.6x |
| P/E, own median own 10-year median / own 5-year median | 61.2x | 25.3x |
| P/S | 3.8x | 3.0x |
| Free cash flow yield | 3.4% | 3.1% |
Where they differ most
the checks behind the gapQuality: Chipotle 2 ahead
- Better net margins than peers 11.4% vs 8.0% (sector 70th pct, n=43)
- Runs leaner than peers (operating margin) 14.7% vs 9.5% (sector 70th pct, n=41)
- Actually profitable TTM net income $1.4B
- Runs leaner than peers (operating margin) 7.8% vs 9.5% (sector 70th pct, n=41)
- Earns well on shareholders' money negative equity
Growth: Chipotle 1 ahead
- Profit growth beats its peers 21.3% vs 20.9% (sector 70th pct, n=22)
- Grew per share, not just in total 44.3% vs 0.0%
- Outgrew its sector last year 4.5% vs 15.1% (sector 70th pct, n=43)
- Profits grew last year -24.7% vs 0.0%