Starbucks Corporation (SBUX)
POSITIVEPrice
$105.25
Market Cap
$119.98B
Fundamental
68
Technical
75
Composite
70
AI Analysis
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Overview
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Balance Sheet & Liquidity
Revenue
$9.32B
Net Income
$1.04B
Free Cash Flow
$3.87B
Total Equity
$-7.67B
Total Liabilities
$35.96B
Current Ratio
0.76
Interest Coverage
7.28
Debt/EBITDA
36.68
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Fair Value Estimation
OvervaluedFair Value
$83.35
Current Price
$105.25
Margin of Safety
-26.3%
Fair Value Range
$56.23 - $110.47
Estimation Methods
Valuation Metrics
P/E Ratio
114.40
ROE
-13.6%
P/B Ratio
-
P/FCF
31.04
Gross Margin
-
ROIC
4.2%
Value Creation (Economic Moat)
ROIC
4.2%
WACC
7.6%
ROIC − WACC
-3.4 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (16)
- EPS shows upward trend
- EPS CAGR 17.06%
- Price CAGR 6.61%
- Operating Margin 10.5%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 115.7%
- Revenue Growth 5Y 9.6%
- Earnings Surprise avg 6.1%
- Earnings Quality (OCF/NI) 1.57
- Share Dilution 0.1%
- Net Margin Trend 11.2% vs 5.4%
- Piotroski F-Score 7/9
Failed (7)
- ROIC 4.2%
- P/FCF 31.04
- CapEx intensity
- Debt/EBITDA
- DCF valuation (Overvalued)
- Analyst Consensus 49% Buy
- PEG Ratio 3.85
Unavailable (5)
- Gross Margin NaN%
- P/B Ratio NaN
- Dividend Payout NaN%
- Debt/Equity ratio
- Price below Graham Number
Price Chart
Technical Indicators
RSI (14)
54.39
SMA 50
$102.34
SMA 200
$94.89
MACD
-0.13
Volatility
2.2%
Momentum (12m)
18.0%
RSI 54.4, SMA trend bullish, momentum 18.0%.
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Issuing new shares, diluting ownership
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Brian R. Niccol | Chairman & CEO | 51 |
| Ms. Catherine R. Smith CPA | Executive VP & CFO | 61 |
| Mr. Mike Grams | EVP & COO | 54 |
| Mr. Bao Giang Val Bauduin | Principal Accounting Officer and Senior VP of Corporate Finance & Development | 49 |
| Mr. Brady Brewer | Chief Executive Officer of Starbucks International | 52 |
| Ms. Sara Kelly | Executive VP & Chief Partner Officer | 45 |
| Mr. Anand Varadarajan | EVP & CTO | - |
| Ms. Pilar Ramos | Executive VP & Chief Legal Officer | 52 |
| Mr. Andy Adams | Senior Vice President of Global Growth & Concepts | - |
| Ms. Janet Landers | Senior Vice President of Business Technology | - |
Audit Risk
8
Board Risk
5
Compensation Risk
9
Shareholder Rights Risk
2
Latest News
Recent headlines for SBUX, sourced from Markets Gazette.
- 6/19/2026NEGATIVEStarbucks Cuts UK, Hong Kong Office Jobs in Restructuring Effort
Starbucks has initiated layoffs affecting corporate employees in its London and Hong Kong offices as part of a broader restructuring strategy. This move signals a shift towards granting more operational control to third-party licensees for its international store management outside of North America. While the direct impact on store-level operations is not immediately clear, such corporate workforce reductions can be interpreted as a cost-saving measure or a response to evolving business strategies, potentially raising concerns among investors about the company's near-term operational stability and international growth trajectory.
- 5/15/2026NEUTRALStarbucks Stock Holds Steady As Investors Digest Extensive Corporate Restructuring Plan
Starbucks Corporation's stock is trading flat as investors analyze a recently filed Form 8-K detailing a significant corporate restructuring plan. While the specifics of the restructuring are still being absorbed by the market, the lack of immediate price movement suggests a neutral short-term reaction. Investors are likely weighing the potential long-term benefits of the restructuring against any immediate costs or uncertainties. Further analysis of the plan's details will be crucial for determining the future impact on the company's performance and stock valuation.
- 4/29/2026POSITIVEStarbucks is winning customers back after investing $500 million in workers and stores
Starbucks is reportedly regaining customer loyalty following a substantial $500 million investment in its workforce and store infrastructure. The company's strategy focused on increasing barista staffing, optimizing work schedules, and enhancing employee benefits appears to be yielding positive results. This initiative aims to improve customer experience and operational efficiency, potentially leading to increased sales and market share. Investors may view this as a strategic move that strengthens Starbucks' competitive position and long-term growth prospects.
- 4/29/2026NEUTRALStarbucks CEO on Earnings, Sales Growth, Speedy Service
Starbucks CEO Brian Niccol discussed the company's recent earnings report, focusing on enhancements to the mobile order experience and the introduction of new menu items. The conversation also touched upon efforts to improve drink consistency. While these initiatives aim to boost customer satisfaction and potentially sales, the news itself is an overview of ongoing strategies rather than a definitive performance indicator. Investors will await concrete sales figures and profit margins to assess the impact of these operational improvements.
- 4/28/2026POSITIVEStarbucks is seeing a resurgence, thanks to younger and lower-income customers
Starbucks Corporation has announced a significant hike in its outlook, driven by a resurgence in sales that have surpassed Wall Street expectations. The coffee giant is experiencing increased patronage from younger demographics and lower-income customers, a trend that has boosted same-store sales. This strategic shift in customer base is expected to translate into higher revenue and profitability. For investors, this indicates a successful adaptation to evolving consumer preferences and a potential for sustained growth, possibly leading to upward revisions in earnings forecasts and stock price targets.
- 4/3/2026NEUTRALStarbucks just made two noteworthy moves to boost its turnaround — but they didn’t help the coffee chain’s stock
Starbucks announced two strategic initiatives: a new employee bonus and tipping program, and a significant deal transferring a substantial portion of its China store operations to an investment firm. While these moves aim to bolster the company's turnaround efforts, the market's reaction was muted, with the stock failing to gain traction. The China deal, in particular, signals a potential shift in operational strategy for a key international market. Investors will be closely watching the impact of these changes on future earnings and market share, especially in China.
- 4/3/2026NEGATIVEStarbucks made two big moves to boost its turnaround — but they didn’t help the coffee chain’s stock
Starbucks announced two significant strategic initiatives: a new employee bonus and tipping program, and a deal to transfer a substantial portion of its China store operations to an investment firm. While aimed at bolstering its turnaround strategy, these moves have not translated into positive market sentiment for the coffee chain's stock. The market appears to be reacting cautiously, suggesting that investors are awaiting further clarity on the long-term financial implications and operational impact of these significant shifts, particularly the divestment in a key international market.
via Markets Gazette