Starbucks (SBUX) AI Stock Analysis

• Market Cap: $97.27B
• Dividend Yield: 2.88%
• Average Volume (3M): 10.50M
• Price to Earnings (P/E): 52.5
• Beta (1Y): 1.18
• Revenue Growth: 2.81%
• EPS Growth: N/A
• Country: US
• Employees: 361,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.52
• Shares Outstanding: 1,136,700,000
• 10 Day Avg. Volume: 13,504,736
• 30 Day Avg. Volume: 10,504,510
• PEG Ratio: -1.02
• Price to Book (P/B): -11.91
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 39.49
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 3.18
• Enterprise Value/Gross Profit: 13.89
• Enterprise Value/Ebitda: 24.66
• 1Y Price Target: $96.11
• Price Target Upside: 13.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 2.44
• Revenue Forecast (FY): $38.40B

• Rating: 54 Neutral
• Price Target: $83.00 ▼(-1.89% Downside)

Starbucks' overall score reflects strong revenue growth and positive earnings call sentiment, but is weighed down by financial risks from high leverage and declining profitability margins. Technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns.

Positive Factors

Joint Venture in China

The joint venture with Boyu Capital in China represents a strategic move to accelerate growth in a key market, leveraging local expertise to expand Starbucks' footprint and enhance its brand presence.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion capabilities.

Green Apron Service

The Green Apron Service enhances customer satisfaction and employee retention, strengthening Starbucks' operational efficiency and brand loyalty.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting Starbucks' ability to invest in growth opportunities and manage economic downturns effectively.

Declining Profitability Margins

Declining margins suggest cost pressures and reduced pricing power, which could impact Starbucks' ability to maintain profitability and fund strategic initiatives.

Net Store Closures

Net store closures may indicate challenges in certain markets, potentially affecting Starbucks' market share and revenue growth in the long term.

Starbucks Business Overview & Revenue Model

Company Description

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground 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, Teavana, Seattle's Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brands. As of October 3, 2021, it operated 16,826 company-operated and licensed stores in North America; and 17,007 company-operated and licensed stores internationally. The company was founded in 1971 and is based in Seattle, Washington.

How the Company Makes Money

Starbucks generates revenue primarily through the sale of beverages and food items in its retail locations, which include both company-operated and licensed stores. The company’s revenue model is diversified, with key revenue streams including: 1) Retail Sales: The core revenue comes from selling coffee, tea, and food products at its stores. 2) Consumer Packaged Goods: Starbucks sells packaged coffee and tea products through grocery stores and other retailers, expanding its brand reach beyond its cafes. 3) Licensing: Starbucks earns royalties and fees from licensed stores that operate under its brand, allowing for a broader market presence without the overhead costs of company-operated locations. 4) Digital and Mobile Sales: Starbucks has invested in its digital platform, including a mobile app that facilitates orders, payments, and loyalty rewards, driving repeat business and customer engagement. 5) Strategic Partnerships: Collaborations with companies like Nestlé for the distribution of its coffee products and with delivery services enhance its revenue channels. The combination of these streams, along with a strong focus on customer loyalty programs, contributes significantly to Starbucks' financial performance.

Starbucks Financial Statement Overview

Summary

Starbucks shows strong revenue growth but faces declining profitability margins, indicating cost pressures. The balance sheet reveals high leverage with negative equity, posing financial risks. Cash flow generation has improved, but operational cash flow efficiency has decreased.

Income Statement

Starbucks has shown a strong revenue growth rate of 34.65% in the latest year, indicating a robust recovery and expansion. However, the gross profit margin has decreased from previous years, and the net profit margin has also declined, suggesting increased costs or pricing pressures. The EBIT and EBITDA margins have similarly decreased, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to a high and negative debt-to-equity ratio, which poses a significant financial risk. Return on equity is negative, indicating losses relative to equity. The equity ratio is also negative, highlighting a leveraged position that could be concerning if not managed carefully.

Cash Flow

Operating cash flow has decreased, and the free cash flow growth rate is positive at 61.06%, showing improvement in cash generation. However, the operating cash flow to net income ratio has decreased, indicating less cash flow relative to net income. The free cash flow to net income ratio remains moderate, suggesting some stability in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.18B	37.18B	36.18B	35.98B	32.25B	29.06B
Gross Profit	8.52B	8.98B	9.71B	9.85B	8.37B	8.39B
EBITDA	4.80B	4.73B	7.12B	7.40B	6.24B	7.35B
Net Income	1.86B	1.86B	3.76B	4.12B	3.28B	4.20B
Balance Sheet
Total Assets	32.02B	32.02B	31.34B	29.45B	27.98B	31.39B
Cash, Cash Equivalents and Short-Term Investments	3.47B	3.47B	3.54B	3.95B	3.18B	6.62B
Total Debt	26.61B	26.61B	25.80B	24.60B	23.80B	23.61B
Total Liabilities	40.11B	40.11B	38.78B	37.43B	36.68B	36.71B
Stockholders Equity	-8.10B	-8.10B	-7.45B	-7.99B	-8.71B	-5.32B
Cash Flow
Free Cash Flow	2.44B	2.44B	3.32B	3.68B	2.56B	4.52B
Operating Cash Flow	4.75B	4.75B	6.10B	6.01B	4.40B	5.99B
Investing Cash Flow	-2.49B	-2.49B	-2.70B	-2.27B	-2.15B	-319.50M
Financing Cash Flow	-2.30B	-2.30B	-3.72B	-2.99B	-5.64B	-3.65B

Starbucks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBUX, the sentiment is Positive. The current price of 84.6 is above the 20-day moving average (MA) of 83.89, above the 50-day MA of 83.85, and below the 200-day MA of 90.79, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 68.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBUX.

Starbucks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TXRH	74 Outperform	$10.97B	25.21	31.55%	1.61%	14.40%	12.45%
YUMC	74 Outperform	$16.07B	18.07	15.44%	1.96%	3.29%	6.72%
MCD	65 Neutral	$213.40B	25.56	―	2.28%	1.26%	2.87%
BROS	64 Neutral	$8.79B	107.35	10.53%	―	28.93%	69.59%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YUM	60 Neutral	$41.39B	29.04	―	1.88%	11.60%	-4.33%
SBUX	54 Neutral	$97.27B	52.54	―	2.88%	2.81%	―

Starbucks Corporate Events

Starbucks Forms Joint Venture with Boyu Capital in China

On November 3, 2025, Starbucks announced a joint venture with Boyu Capital, where Boyu will acquire up to a 60% interest in Starbucks’ retail operations in China. This strategic partnership aims to accelerate Starbucks’ growth in China, leveraging Boyu’s local expertise to expand into new cities and regions, while Starbucks retains a 40% interest and continues to own and license its brand. The venture is expected to enhance Starbucks’ market presence and customer experience in China, with plans to increase the number of stores from 8,000 to 20,000, reflecting a significant milestone in Starbucks’ 26-year journey in the region.

The most recent analyst rating on (SBUX) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Starbucks stock, see the SBUX Stock Forecast page.

Starbucks Earnings Call: Signs of Recovery Amid Challenges

Starbucks’ recent earnings call revealed a mixed sentiment, showcasing signs of recovery with positive revenue growth and improved sales comps, especially in the U.S. and international segments. However, the company faces challenges with declining operating margins and net store closures, indicating ongoing hurdles.

Starbucks Reports Q4 2025 Earnings with Sales Growth

Starbucks Corporation, a leading global roaster and retailer of specialty coffee, has reported its financial results for the fourth quarter and full fiscal year 2025, showcasing a return to global comparable store sales growth for the first time in seven quarters.

Starbucks Announces Major Restructuring Plan

On September 23, 2025, Starbucks announced a restructuring plan under its ‘Back to Starbucks’ strategy, which involves closing certain coffeehouses and transforming its support organization. This initiative aims to revitalize the brand by enhancing the customer experience and ensuring financial performance. The company plans to close stores that do not meet brand and financial criteria, impacting its North American operations significantly. Starbucks estimates restructuring costs of approximately $1 billion, with a majority of expenses related to North America, including employee separation benefits and lease costs. The company expects to complete most closures by the end of the fiscal year, with a slight decline in its North American store count. The restructuring is intended to build a stronger, more resilient Starbucks, with plans to uplift over 1,000 locations and reduce non-retail partner roles to focus on customer service and growth.

The most recent analyst rating on (SBUX) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Starbucks stock, see the SBUX Stock Forecast page.