Starbucks vs AutoZone

This page compares Starbucks and AutoZone, examining their business models, financial performance, and market context in a neutral, accessible way. It explains how each company organises its operations, generates revenue, and participates in its respective industry landscape. Educational content, not financial advice.

This page compares Starbucks and AutoZone, examining their business models, financial performance, and market context in a neutral, accessible way. It explains how each company organises its operation...

Comparison Snapshot

Key Financial Metrics

SBUX

Metric

AZO

$109.54B

Market Cap

$62.73B

-1.11%

Potential Profit

15.39%

Buy

Analyst Rating

Buy

Why It's Moving

Starbucks Stock Charges Ahead of Q1 Earnings and Investor Day, Eyeing Turnaround Momentum.

Shares jumped 1.87% to $97.62 in the latest session, marking a 13% monthly rise that beats the retail sector amid constructive Wall Street sentiment.
Q1 revenue eyed at $9.63-9.64 billion, up over 2% YoY, fueled by US delivery growth, loyalty program upticks, and international expansion via China partnership.
Earnings expected to dip to $0.58-0.59 per share due to high coffee costs and tariffs, but analysts lean 'Buy' with hopes for sustained transaction pickup.

Sentiment:

🐃Bullish

AutoZone Stock Bounces Back Amid Valuation Debate and Expansion Momentum.

Recent weekly gains reverse some three-month declines, prompting fresh valuation checks on $19.3B annual revenue and $2.5B net income.
International push into Mexico and Brazil targets 100 new stores this fiscal year, unlocking revenue from untapped markets.
New high-tech distribution centers in California and Virginia promise supply chain efficiencies to boost margins.

Sentiment:

🐃Bullish

Starbucks Stock Charges Ahead of Q1 Earnings and Investor Day, Eyeing Turnaround Momentum.

Shares jumped 1.87% to $97.62 in the latest session, marking a 13% monthly rise that beats the retail sector amid constructive Wall Street sentiment.
Q1 revenue eyed at $9.63-9.64 billion, up over 2% YoY, fueled by US delivery growth, loyalty program upticks, and international expansion via China partnership.
Earnings expected to dip to $0.58-0.59 per share due to high coffee costs and tariffs, but analysts lean 'Buy' with hopes for sustained transaction pickup.

Sentiment:

🐃Bullish

AutoZone Stock Bounces Back Amid Valuation Debate and Expansion Momentum.

Recent weekly gains reverse some three-month declines, prompting fresh valuation checks on $19.3B annual revenue and $2.5B net income.
International push into Mexico and Brazil targets 100 new stores this fiscal year, unlocking revenue from untapped markets.
New high-tech distribution centers in California and Virginia promise supply chain efficiencies to boost margins.

Sentiment:

🐃Bullish

Investment Analysis

Starbucks

SBUX

Pros

Starbucks showed its first quarter of positive global comparable store sales growth in seven quarters, indicating early recovery momentum.
The company's 'Back to Starbucks' turnaround strategy has been gaining traction, with improvements especially in North American markets.
Starbucks maintains a strong global presence with a significant footprint and steady revenue growth, reporting $37.2 billion in consolidated net revenues in fiscal 2025.

Considerations

Adjusted earnings per share fell sharply by 36% in fiscal 2025 despite an increase in revenue, signaling profitability challenges.
The company has a negative return on equity exceeding 36%, raising concerns about efficient use of shareholders' capital.
Dividend payout ratio over 105% suggests dividends are paid beyond earnings, which may be unsustainable long term.

AutoZone

AZO

Pros

AutoZone is a leading automotive parts retailer with a strong market position in the US, Mexico, and Brazil.
The company has demonstrated solid fundamentals and strong analyst ratings, often scoring highly on AI-driven stock performance predictions.
AutoZone benefits from steady demand in the automotive aftermarket sector, which tends to be more resilient to economic cycles.

Considerations

AutoZone’s high valuation multiples indicate the stock may be priced for growth, potentially limiting near-term upside.
The company faces ongoing competitive pressures from both traditional retailers and online automotive parts suppliers.
Macro factors such as supply chain disruptions and commodity cost volatility could impact margins and operational execution.

Related Market Insights

Starbucks Closures: Coffee Chain Competition Risks

Starbucks' 100 store closures create a competitive vacuum. Discover how McDonald's, Tim Hortons, and other rivals can capture market share. Invest in the coffee market shake-up with Nemo.