SBUX vs WEN

For growth investors, The Wendy's Company (WEN) is the stronger pick with 3.

0% revenue growth year-over-year, versus 2. 8% for Starbucks Corporation (SBUX). The Wendy's Company (WEN) offers the better valuation at 7. 3x trailing P/E (12. 1x forward), making it the more compelling value choice. Analysts rate Starbucks Corporation (SBUX) a "Hold" — based on 59 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, The Wendy's Company (WEN) is the cheapest at 7.

3x versus Starbucks Corporation at 64. 0x. On forward P/E, The Wendy's Company is actually cheaper at 12. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Wendy's Company wins at 1. 16x versus Starbucks Corporation's 2. 82x — a reasonable growth-adjusted valuation.

Over the past 5 years, Starbucks Corporation (SBUX) delivered a total return of +0.

8%, compared to -53. 5% for The Wendy's Company (WEN). Over 10 years, the gap is even starker: SBUX returned +114. 8% versus WEN's +10. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Wendy's Company (WEN) is the lower-risk stock at 0.

52β versus Starbucks Corporation's 0. 99β — meaning SBUX is approximately 88% more volatile than WEN relative to the S&P 500.

By revenue growth (latest reported year), The Wendy's Company (WEN) is pulling ahead at 3.

0% versus 2. 8% for Starbucks Corporation (SBUX). On earnings-per-share growth, the picture is similar: The Wendy's Company grew EPS -2. 1% year-over-year, compared to -50. 8% for Starbucks Corporation. Over a 3-year CAGR, WEN leads at 5. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Wendy's Company (WEN) is the more profitable company, earning 8.

7% net margin versus 5. 0% for Starbucks Corporation — meaning it keeps 8. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WEN leads at 16. 5% versus 9. 6% for SBUX. At the gross margin level — before operating expenses — WEN leads at 35. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, The Wendy's Company (WEN) is the more undervalued stock at a PEG of 1. 16x versus Starbucks Corporation's 2. 82x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, The Wendy's Company (WEN) trades at 12. 1x forward P/E versus 44. 0x for Starbucks Corporation — 31. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WEN: 11. 2% to $7. 73.

All stocks in this comparison pay dividends.

The Wendy's Company (WEN) offers the highest yield at 14. 3%, versus 2. 3% for Starbucks Corporation (SBUX).

For long-horizon retirement investors, The Wendy's Company (WEN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

52), 14. 3% yield). Both have compounded well over 10 years (WEN: +10. 9%, SBUX: +114. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: SBUX is a mid-cap quality compounder stock; WEN is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.