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$107.85
Market Capi
$123B
Growth-adj P/E (3-yr hist)i
n/a
Growth-adj P/E (3-yr proj)i
1.0x
P/S 26Ei
3.2x
P/S 28Ei
3.0x
EV/EBIT 26Ei
33x
EV/EBIT 28Ei
24x
P/E 26Ei
47x
P/E 28Ei
29x
P/S 26Ei
3.2x
EV/EBIT 26Ei
33x
P/E 26Ei
47x
P/S 28Ei
3.0x
EV/EBIT 28Ei
24x
P/E 28Ei
29x
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%
Business Model
Recent Developments
Average Targeti
$111.74+6%
Consensusi
Outperform
34 analysts covering
Net debti
$19B
Div. Yieldi
2.3%
Dilutioni
0.3%
Market Capi
$123B
P/E 26Ei
47x
Adj. P/E (fwd.)i
1.0x
Revenue 26E
$38B
Proj. CAGRi
3.2%
Gross Margini
23%
EBIT 26E
$4.0B
Proj. CAGRi
17%
Op. Margini
9.9%
Net Profit 26E
$2.3B
Proj. CAGRi
29%
Net Margini
5.0%
Average Targeti
$111.74+6%
Consensusi
Outperform
34 analysts covering
Profile
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.
Industry
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.
Key metrics
Economic moat
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.
Brian Niccol
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.
Cathy Smith
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.
Mike Grams
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 Ratioi
EV/EBITi
P/E Ratioi
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 billions of USD.
Operating cashflow · Levered Free Cash Flow
Free Cash Flow
CAPEX
Values in billions of USD.
Margins
Rentability
Balance sheet
Values in billions of USD.
Liquidity ratios
Debt-to-Equity-Ratio
Last earnings
Fiscal third-quarter 2026 results (period ended June 28, 2026, reported July 29) showed global comparable sales up 7.9%, with transaction growth outpacing ticket growth — more visits, not just higher prices, driving the recovery.
Non-GAAP earnings per share of $0.85 came in well above expectations, roughly 70% higher than a year earlier, on consolidated net revenue near $9.3 billion.
North America comparable sales rose 8.1%, with U.S. locations up 7.9%, again led by traffic.
Management raised full-year guidance, now targeting adjusted EPS of $2.55 to $2.65 for fiscal 2026, up from a prior $2.25–$2.45 range, with higher comparable-sales targets as well.
Recent developments
Starbucks confirmed its fall lineup on August 3, bringing the Pumpkin Spice Latte back on August 25 alongside new drinks such as a chai-based "Chaider," aimed at sustaining traffic into the holidays.
Starting August 5, the company extended its loyalty program so linked Rewards and Delta SkyMiles members can earn airline miles on in-store purchases.
Management kept executing its multi-year store-investment plan, adding staff and renovating cafes, building on the operational reset behind the quarter's traffic gains.
Debate & sentiment
Bulls see the return of traffic-led growth as validation of the turnaround, with management citing room for thousands of additional U.S. locations and a larger international footprint over time.
Skeptics counter that much of the recovery is already priced into the shares, with the stock trading at a premium to its historical earnings multiple even after the guidance raise.
Labor relations remain unresolved, with unionized baristas still pressing for a first contract, a lingering cost and reputational overhang.
The swing factor for both camps is whether the operating-margin expansion seen this quarter keeps compounding as café-renovation and staffing investments mature.
Consensusi
Outperform
Average targeti
$111.74+6%
Highest targeti
$143.00+36%
Lowest targeti
$81.00-23%
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