Starbucks Corp

SBUX: XMEX (MEX)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	MXN 4,683.18	Bjlp	Qbscxkq

Restaurants' Value Menu Looks Unappetizing as Market Sentiment Outruns Fundamentals

Sean Dunlop

Jan 24, 2023

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.

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