Starbucks Corporation (SBUX) AI Stock Analysis

Starbucks Corporation is a global coffee company specializing in roasting, marketing, and retailing. It operates through three main segments: North America, International, and Channel Development. Across its global network of company-operated and licensed stores, Starbucks serves handcrafted coffee and tea beverages, whole beans, single-serve items, and ready-to-drink products, along with pastries, breakfast sandwiches, and lunch food items. The company also extends its reach through grocery channels and foodservice partnerships under brands including Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos water, Starbucks Reserve, and Princi. Founded in 1971, it is headquartered in Seattle, Washington.

Starbucks grew revenue from $29.06B in FY2021 to $37.18B in FY2025, delivering a 5-year revenue CAGR of 9.6%. However, net income fell from $4.20B in FY2021 to $1.86B in FY2025, with net margin declining from 14.5% to 5.0% over that span. Diluted EPS decreased from $3.24 in FY2021 to $2.12 in FY2025. In the trailing twelve months ended June 30, 2026, revenue stood at $38.34B, with an operating margin of 12.9% and an EPS of $1.73. For the latest quarter ended June 30, 2026, quarterly revenue fell 1.4% year-over-year, while quarterly earnings grew 85.7%.

As of June 30, 2026, Starbucks held $3.61B in cash and short-term investments against total debt of $22.43B, resulting in net debt of $18.82B. Total assets stood at $28.29B, with a current ratio of 0.76 and shareholders' equity of -$7.67B. In FY2025, operating cash flow was $4.75B and free cash flow was $2.44B. Cash uses in FY2025 included $2.31B in capital expenditures and $2.77B in dividends paid, while the 5-year share count changed by -2.8%.

At $97.52, Starbucks trades at a market capitalization of $111.17B and an enterprise value of $126.14B. Its trailing P/E of 56.4x and forward P/E of 30.9x trade at a premium to the median of its Nasdaq-100 Consumer Cyclical peers (34.1x trailing and 26.0x forward). The company's EV/EBITDA of 23.8x also exceeds the peer median of 19.2x, while its price-to-sales of 2.9x sits below the peer median of 4.1x. Over the past year, the stock returned 18.6%, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of -1.5% trails the index return of 83.0%.

Starbucks pays a quarterly dividend with a forward annual dividend of $2.52 per share, representing a 2.58% dividend yield. The company has paid dividends for 17 consecutive years, with an annualized 5-year dividend growth rate of 7.8%. The current payout ratio is 102.5%, and the last ex-dividend date is November 13, 2026.

Wall Street analysts hold 12 Strong Buy, 2 Buy, 19 Hold, 1 Sell, and 1 Strong Sell ratings on Starbucks. The mean price target is $110.97, representing a 13.8% upside relative to the last close of $97.52. For the fiscal year ending September 30, 2026, consensus estimates project EPS of $2.60 and revenue of $37.99B. For the following fiscal year, 33 analysts forecast EPS of $3.13 and revenue of $38.55B. Starbucks has beaten EPS estimates in 2 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Starbucks Corporation (SBUX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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