Starbucks Corp
SBUX: XMEX (MEX)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
MXN 4,484.34 | Ckgl | Bdglktrc |
Restaurants' Value Menu Looks Unappetizing as Market Sentiment Outruns Fundamentals
We expect sluggish sales growth to represent the key issue for the restaurant industry in 2023, following a year of investor concern regarding inflated input costs and margin compression. Though we see modest upside in wide-moat Domino's and view wide-moat Chipotle shares as fairly valued, the industry trades at a 5% market-cap weighted premium to our fair value estimates, suggesting that current entry prices are less than salient.