SBUX

Starbucks Corporation

Fundamental data last updated:August 10, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Restaurants

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Starbucks Corporation, along with its various subsidiaries, operates worldwide as a key player in roasting, marketing, and selling specialty coffee. Its business is structured into three main operating divisions: North America, International markets, and Channel Development. The company's retail outlets offer a broad assortment of coffee and tea beverages, roasted whole bean and ground coffees, single-serve options, and ready-to-drink products. Customers can also find a variety of food items, including pastries, breakfast sandwiches, and lunch selections. Furthermore, Starbucks extends its brand reach by licensing its trademarks to independently operated stores, grocery retailers, and foodservice accounts. Products are sold under well-known labels such as Starbucks, Teavana, Seattle's Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi. As of October 3, 2021, Starbucks had a significant global presence, operating 16,826 company-owned and licensed stores across North America, in addition to 17,007 similar locations internationally. The company, established in 1971, is headquartered in Seattle, Washington.

 


VALUATION

P/E

77.79

Market Cap ($M USD)

$116.37B

Forward P/E

20.10

PEG

0.07

PRICE TO SALES

3.03

PRICE TO BOOK

-13.74

EV / EBITDA

25.95

5-Year Average P/E

Free Cash Flow Yield

2.34%

DCF Value

$47.59

Graham Number

N/A

Price to FCF

42.69

EV to FCF

51.08

Earnings Yield

1.29%

FCF Yield

2.34%

DIVIDEND

Yield

2.42%

Annual Payout

$2.47

Payout Ratio

187.08%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.31

Next Year EPS Growth Estimate

$5.08

Next Year Revenue Growth Estimate

$47.35B

Return on Equity (ROE)

-18.33%

FREE CASH FLOW

Operating Margin

9.28%

Debt-to-Equity

-3.29

Piotroski F-Score

7

Altman Z-Score

3.01

Return on Invested Capital (ROIC)

18.69%

Current Ratio

0.92

Quick Ratio

0.73

Net Debt to EBITDA

4.26

Interest Coverage

6.05

Gross Profit margin

20.36%

FCF PER SHARE

$2.39

REVENUE PER SHARE

$33.76

Gainseekers Quantitative Analysis

Summary

Starbucks Corporation’s valuation presents a stark contrast between market optimism and intrinsic value. The stock traded significantly above its DCF Value, suggesting a market exuberance not fully supported by fundamentals. With a Forward P/E of 25.06, the market anticipates robust growth, yet the Earnings Yield of 1.23% signals a meager return relative to its price. The Altman Z-score of 3.05 indicates moderate financial stability, but the negative Return on Equity raises red flags about management’s efficiency in generating shareholder value. Overall, the market seems to be pricing in perfection, leaving little room for error.

AI Exposure / Tech Reliance

In the rapidly evolving restaurant industry, Starbucks is well-positioned to leverage AI and technology to enhance customer experience and operational efficiency. As a leader in digital ordering and loyalty programs, it can adapt to tech shifts seamlessly. This resilience ensures it remains competitive in a tech-driven market landscape.

The Bull Case

For the discerning GARP investor, Starbucks offers compelling reasons to buy. The robust ROIC of 18.69% highlights its ability to generate substantial returns on invested capital, while a Piotroski F-Score of 7 suggests strong financial health. Despite a low FCF Yield of 2.25%, the company's operating margin of 9.28% and strategic pricing power underscore its capacity to maintain profitability. These metrics paint a picture of a company with efficient capital allocation and enduring market presence.

The Bear Case

However, structural risks loom large for Starbucks. The Price/Book ratio is alarmingly negative, and the Price/Sales ratio of 3.15 suggests an overvaluation. The stock's proximity to its 52-week high indicates potential overextension, while the high payout ratio of 187.08% raises sustainability concerns. These factors, coupled with a negative Debt/Equity ratio, highlight vulnerabilities that could undermine long-term growth.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$108.50

Institutional Ownership %

1-Year Beta

0.97

Insider Buying % (6 Mo)

Distance to 52-Week High

6.63%

Distance to 52-Week Low

23.62%

EARNINGS SURPRISE %

17.56%

50-DAY SMA

$102.06

200-DAY SMA

$92.83

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.