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Starbucks (SBUX) Stock Analysis

Here is a fundamental analysis of Starbucks (SBUX), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

SBUX
GSPC
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Starbucks (SBUX) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Starbucks (SBUX) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Starbucks (SBUX) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: SBUXIndustry group median
1-Year Return12.13%1.05%

Risk

Drawdown

SBUX
GSPC
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Starbucks (SBUX) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Starbucks (SBUX) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: SBUXIndustry group median
1-Year Volatility28.52%44.02%
Beta0.971.03

Company Profile

Company profile fields for Starbucks (SBUX)
Profile ItemSBUX
NameStarbucks Corporation
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
GICS Sub-IndustryRestaurants
Market Capitalization117.43 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateJune 26, 1992
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Starbucks (SBUX) trades at P/E ratio of 78.66, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.

SBUX

Consumer Services industry group

78.66

Group distribution
SBUX
78.66
Max
71.36
Q3
40.24
Median
22.08
Q1
17.04
Min
3.87
Largest peers
SBUX
78.66
HLT
52.74
MAR
42.19
ABNB
32.66
MCD
23.48
BKNG
21.73
RCL
17.95
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Where Starbucks (SBUX) stands on P/E ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Starbucks (SBUX) trades at 3.05 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

SBUX

Consumer Services industry group

3.05

Group distribution
Max
6.59
Q3
3.16
SBUX
3.05
Median
1.68
Q1
0.87
Min
0.06
Largest peers
HLT
15.53
MAR
14.78
MCD
7.37
ABNB
6.21
BKNG
4.62
RCL
4.29
SBUX
3.05
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Where Starbucks (SBUX) stands on P/S ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Starbucks (SBUX) has negative P/B ratio of -13.87, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

SBUX

Consumer Services industry group

-13.87

Group distribution
Max
13.42
Q3
6.34
Median
2.54
Q1
1.07
Min
-5.84
SBUX
-13.87
Largest peers
ABNB
10.31
RCL
8.05
HLT
-13.38
SBUX
-13.87
BKNG
-14.75
MAR
-26.04
MCD
-157.35
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Where Starbucks (SBUX) stands on P/B ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Starbucks (SBUX) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: SBUXIndustry group median
Price-to-Earnings Ratio (TTM)78.6622.08
Price-to-Sales Ratio (TTM)3.051.68
Price-to-Book Ratio (MRQ)-13.872.54
Free Cash Flow Yield-1.11%4.08%

Profitability

Return on Equity (TTM)

No usable ROE is available for Starbucks (SBUX) this period, so the shareholder-equity return read is skipped.

SBUX

Consumer Services industry group

--

Group distribution
Max
52.89%
Q3
29.07%
Median
12.44%
Q1
3.56%
Min
-26.11%
SBUX
--
Largest peers
RCL
49.58%
ABNB
32.33%
SBUX
--
MCD
--
BKNG
--
MAR
--
HLT
--
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Starbucks (SBUX) doesn’t report ROE this period; the box shows the Consumer Services group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Starbucks (SBUX) keeps 3.89% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

SBUX

Consumer Services industry group

3.89%

Group distribution
Max
24.47%
Q3
12.35%
Median
6.13%
SBUX
3.89%
Q1
1.16%
Min
-15.48%
Largest peers
MAR
35.97%
MCD
31.62%
HLT
30.41%
RCL
24.36%
BKNG
22.23%
ABNB
19.90%
SBUX
3.89%
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Where Starbucks (SBUX) stands on net margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Starbucks (SBUX) turns 8.42% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

SBUX

Consumer Services industry group

8.42%

Group distribution
Max
44.25%
Q3
20.10%
Median
11.37%
SBUX
8.42%
Q1
3.21%
Min
-20.31%
Largest peers
MAR
59.01%
HLT
57.36%
MCD
44.25%
RCL
26.17%
BKNG
25.04%
SBUX
8.42%
ABNB
3.21%
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Where Starbucks (SBUX) stands on operating margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Starbucks (SBUX) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: SBUXIndustry group median
Return on Equity (TTM)--12.44%
Return on Assets (TTM)7.38%5.05%
Net Profit Margin (TTM)3.89%6.13%
Operating Profit Margin (TTM)8.42%11.37%
Gross Profit Margin (TTM)21.90%44.16%

Financial Strength

Current Ratio (MRQ)

Starbucks (SBUX) has current ratio of 0.92, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

SBUX

Consumer Services industry group

0.92

Group distribution
Max
3.05
Q3
1.72
Median
0.99
SBUX
0.92
Q1
0.69
Min
0.20
Largest peers
ABNB
1.44
MCD
1.14
BKNG
1.06
SBUX
0.92
HLT
0.61
MAR
0.46
RCL
0.20
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Where Starbucks (SBUX) stands on current ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

No usable debt-to-equity ratio is available for Starbucks (SBUX) this period, so the balance-sheet leverage read is skipped.

SBUX

Consumer Services industry group

--

Group distribution
Max
7.23
Q3
3.20
Median
1.27
Q1
0.35
Min
0.01
SBUX
--
Largest peers
RCL
2.17
ABNB
0.33
SBUX
--
MCD
--
BKNG
--
MAR
--
HLT
--
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Starbucks (SBUX) doesn’t report debt-to-equity ratio this period; the box shows the Consumer Services group’s distribution and the dots its largest members.

Financial Strength at a Glance

Starbucks (SBUX) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: SBUXIndustry group median
Current Ratio (MRQ)0.920.99
Debt-to-Equity Ratio (MRQ)--1.27
Net Debt / EBITDA4.213.48

Dividends

Dividend Yield (TTM)

Starbucks (SBUX) has dividend yield of 2.41%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

SBUX

Consumer Services industry group

2.41%

Group distribution
Max
4.72%
SBUX
2.41%
Q3
1.94%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MCD
2.61%
SBUX
2.41%
RCL
1.70%
BKNG
0.97%
MAR
0.73%
HLT
0.17%
ABNB
0.00%
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Where Starbucks (SBUX) stands on dividend yield within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Starbucks (SBUX) has payout ratio of 187.79%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.

SBUX

Consumer Services industry group

187.79%

Group distribution
SBUX
187.79%
Max
86.96%
Q3
34.83%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
SBUX
187.79%
MCD
59.85%
MAR
28.06%
RCL
25.93%
BKNG
20.73%
HLT
9.16%
ABNB
0.00%
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Where Starbucks (SBUX) stands on payout ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Starbucks (SBUX) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: SBUXIndustry group median
Dividend Yield (TTM)2.41%0.00%
Dividend Payout Ratio (TTM)187.79%0.00%