Stocks · Hotels, Restaurants & Leisure

Starbucks Corp (SBUX)

$102.48

−0.20% last session

Market value

$117.1bn

P/E ratio

58.9

Dividend yield

2.22%

52-week range

$78–$111

What Starbucks Corp does

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.

Hotels, Restaurants & Leisure · based in the US · listed since 1992Biggest source of revenue: Company-Operated Stores (83%) · breakdownCompany website ↗

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tap a grade for the details

BGrowthGrowing steadily

Sales growth, last 12 months4.5% · 48/100

Sales growth a year, 5 years9.6% · 68/100

Earnings per share growth a year, 5 years15.7% · 84/100

AProfitabilityHighly profitable

Net profit margin5.2% · 46/100

Return on equity116% · 100/100

Return on capital, 10-year average92.6% · 100/100

DFinancial strengthStretched

Net debt ÷ operating profit4.3× · 21/100

Interest cover5× · 59/100

Current ratio (short-term assets ÷ debts)0.76 · 42/100

FValuationVery expensive

P/E against its own 10-year history91th percentile · 9/100

Free cash flow yield3.2% · 55/100

PEG (P/E ÷ growth)3.7 · 23/100

Our base-case value vs price−79% · 5/100

CMomentumFlat

Share price, last 12 months18.0% · 74/100

Share price, last 3 months−2.4% · 43/100

Price

+17.4% over 1Y

27 Oct 2026$102.41

Daily closing prices. Source: Twelve Data.

Bull vs bear

The numbers lean bearish (5 vs 14)

The bull case

Very high returns on capital●●●

Averages 93% after tax, a sign of a durable advantage (a 'moat').

Shareholder-friendly management●●○

Passes 4 of 6 capital-allocation checks.

The bear case

Expensive against its own history●●●

P/E 59.1 vs a 10-year median of 30.0 (range 18–109).

Priced above even our optimistic case●●●

The price is 169% above our bull case.

Growth is slowing●●○

Revenue growth over the last 12 months (4%) is well below its 5-year average (10%).

Margins shrinking●●○

Operating margin down from 14.3% to 7.9% in three years: competition or costs biting.

Heavy debt●●○

Net debt is 4.3× a year's operating profit.

A lot has to go right●●○

Today's price implies only about 4.5% a year on our base case.

Can you answer every bear point? Put your answers in your thesis under risks.

See the full picture on Starbucks Corp

Ten years of results, revenue by product and region, a management scorecard, bear/base/bull valuations, analyst targets, every SEC filing explained, and a thesis that checks itself after each report. Free.

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Starbucks Corp (SBUX)

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See the full picture on Starbucks Corp

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Bull vs bear

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