Loading…
Loading…
$95.51
Market Capi
$109B
Growth-adj P/E (3-yr hist)i
n/a
Growth-adj P/E (3-yr proj)i
0.9x
P/S 26Ei
2.9x
P/S 28Ei
2.7x
EV/EBIT 26Ei
30x
EV/EBIT 28Ei
20x
P/E 26Ei
47x
P/E 28Ei
27x
P/S 26Ei
2.9x
EV/EBIT 26Ei
30x
P/E 26Ei
47x
P/S 28Ei
2.7x
EV/EBIT 28Ei
20x
P/E 28Ei
27x
Revenue
2026E
38B
Gross Margini
23%
Hist. CAGRi
4.9%
Proj. CAGRi
3.2%
EBIT
2026E
4.0B
Op. Margini
9.9%
Hist. CAGRi
-6.1%
Proj. CAGRi
17%
Net profit
2026E
2.3B
Net Margini
5.0%
Hist. CAGRi
-17%
Proj. CAGRi
29%
Consensus Target
$106.25+11%
35 analysts covering
Net debti
$23B
Div. Yieldi
2.9%
Dilutioni
0.3%
Starbucks operates and licenses coffeehouses globally under the Starbucks Coffee, Teavana, Starbucks Reserve, and Princi brands, generating revenue through company-operated stores, licensed store royalties and fees, and packaged consumer goods.
Starbucks sells directly to everyday consumers across age groups, with the Starbucks Rewards loyalty program (roughly 34 million active members in the U.S.) as its primary retention mechanism. The global coffeehouse market is large, competitive, and fragmented, but Starbucks occupies a premium segment where brand, convenience, and customization reduce direct price competition. Geographic concentration in North America (~73% of revenue) creates exposure to U.S. consumer spending cycles, while international markets — particularly Asia Pacific — provide the primary long-run unit expansion runway.
Starbucks' moat rests on brand pricing power and habitual daily consumption — the morning coffee visit is one of the most repeat-purchase behaviors in consumer staples, and Starbucks has successfully anchored premium pricing to a personalized, app-enabled experience. The Rewards program creates meaningful switching costs through accumulated points, mobile order familiarity, and personalized offers. At ~41,000 locations, the store network is a distribution asset that would take a competitor decades and tens of billions to replicate. Licensing and JV arrangements extend brand reach without proportional capital outlay, structurally improving long-run returns on invested capital.
Niccol joined Starbucks as Chairman and CEO in September 2024, brought in to lead a comprehensive turnaround after years of declining comparable transactions. He previously served as CEO of Chipotle Mexican Grill from 2018 to 2024, where he is widely credited with reviving the brand through operational discipline, digital ordering, and cultural repositioning. His Back to Starbucks plan — focused on simplifying the menu, investing in store staffing, and rebuilding the coffeehouse experience — has delivered accelerating comparable sales growth through fiscal 2026.
Smith joined as Chief Financial Officer in March 2025, bringing extensive CFO experience from prior roles at Target, Walmart, and Express Scripts. Her appointment signaled Starbucks' focus on financial discipline and capital allocation rigor during the turnaround — particularly important as the company navigates the earnings trough, higher labor costs, and the structural shift in China to a JV model.
Grams became Chief Operating Officer in June 2025, tasked with translating the Back to Starbucks strategy into consistent in-store execution at scale. His operational mandate covers store staffing models, throughput improvements, and the rollout of the Green Apron Service labor approach that Niccol has credited as central to the customer experience recovery.
Other key figures
Anand Varadarajan joined as Chief Technology Officer in January 2026, overseeing digital infrastructure including the Starbucks app and Rewards platform. Richard Allison, a board member since 2019 and former CEO of Domino's Pizza, brings relevant quick-service restaurant turnaround experience to the board's oversight of Niccol's strategy.
P/S Ratio
EV/EBIT
P/E Ratio
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in millions of USD.
Operating cashflow · Levered Free Cash Flow
Free Cash Flow
CAPEX
Values in millions of USD.
Margins
Rentability
Balance sheet
Values in millions of USD.
Liquidity ratios
Debt-to-Equity-Ratio
Starbucks reported Q2 fiscal 2026 results on April 28, 2026, with global comparable store sales up 6.2% — the strongest comp growth in several years — driven by both a recovery in transaction volumes and a modest lift in average ticket. Consolidated net revenues rose 9% year over year to $9.5 billion, beating consensus estimates.
Non-GAAP EPS of $0.50 came in ahead of expectations, while GAAP EPS reflected one-time items tied to the China joint venture restructuring. Comparable transactions grew 3.8%, marking continued momentum after U.S. transaction growth first returned in Q1 after eight consecutive quarters of declines.
Management raised full-year fiscal 2026 guidance, increasing the global comparable sales growth target to at least 5% and lifting the non-GAAP EPS range to $2.25–$2.45. CEO Brian Niccol characterized Q2 as "the turn in our turnaround," signaling confidence that the Back to Starbucks plan is gaining durable traction.
On April 2, 2026, Starbucks closed its joint venture with Boyu Capital, in which Boyu acquired up to a 60% stake in Starbucks' China retail operations while Starbucks retained a 40% interest and continued to license the brand. Starting in Q3 fiscal 2026, China will be deconsolidated and reported within the licensed segment, materially compressing reported revenues but expected to be margin-accretive as roughly half of China-related revenues flow through to operating income.
In March 2026, Starbucks launched a reimagined three-tier loyalty program — Green, Gold, and Reserve levels — as a central pillar of the Back to Starbucks strategy to deepen customer engagement and reduce over-reliance on heavy discounting.
In January 2026, CEO Brian Niccol hosted an Investor Day showcasing the turnaround roadmap, including operational simplification, staffing investments, and a refocused coffeehouse experience centered on human connection and coffee quality.
Bulls anchor to the earnings recovery trajectory: with U.S. comp transactions now positive, the China cost drag removed via the Boyu JV, and a rising margin profile, the path to meaningfully higher EPS by fiscal 2028 looks credible. The Investor Day outlook drew renewed analyst interest in the multi-year earnings recovery thesis.
Bears focus on the structural complexity of executing a cultural and operational reset at global scale. Heavy investments in labor — higher wages, more staffing per store — compress near-term margins, and the China deconsolidation will shrink reported revenues in the back half of fiscal 2026, creating optics risk even if economics improve.
Analyst sentiment is divided: the majority hold a neutral-to-positive stance, with Jefferies upgrading to Hold from Underperform in April 2026 following the China JV close. The key swing factor is whether the Back to Starbucks operational changes can sustain comp growth in the U.S. through fiscal 2027 without requiring continued cost increases.
Consensusi
Outperform
Average targeti
$106.25+11%
Highest targeti
$137.00+43%
Lowest targeti
$81.00-15%