Starbucks stands out as the world's biggest and most recognizable coffee brand, powered by ultracustomizable beverages in-store and a sweeping footprint of nearly 41,000 cafes in over 80 countries. About 52% are company-operated, with the balance run by licensees.
It is a $104B consumer company. Revenue grew 4.5% over the last year, it keeps 5¢ of every dollar of sales as profit, and its net debt equals ~3.9 years of free cash flow. It trades at 52.2× earnings — in the most expensive third of its own history.
- Website
- starbucks.com
- Location
- Seattle, WA
- Employees
- 381 000
- Sector
- Consumer Cyclical
- Founded
- 1971
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability and quality; Valuation and Health lag behind.
Valuation44
- P/E vs own history85th pct · 0/25
- FCF yield3.5% · 12/25
- P/S2.7x · 20/25
- EV/EBITDA22.3x · 12/25
Growth57
- Revenue CAGR6.4% · 12/25
- Net income CAGR-18.5% · 0/25
- EPS CAGR ~5Y15.7% · 20/25
- Fwd implied growth72.0% · 25/25
Profitability75
- ROIC36.7% · 25/25
- ROE115.7% · 25/25
- Net margin5.2% · 13/25
- Operating margin9.2% · 12/25
Health36
- Altman Zn/a · 0/25
- Current ratio0.76 · 6/25
- Interest coverage14.8x · 25/25
- Net cash / debtD/A 45% · 5/25
Quality80
- Piotroski F4/9 · 10/25
- Beneish M-2.29 · 20/25
- FCF conversion184% · 25/25
- Margin stabilityσ 3.5% · 25/25
Moat62
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin15.3% · 0/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 3.9% · 12/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2022ProductStarbucks launched a line of canned energy drinks, called "Baya"
- Dec 9, 2021MilestoneFinally, on December 9, 2021, the workers at the Elmwood Avenue store became the first unionized Starbucks workers…
- FY2018FinancialBest year on record$4.52B net income
- 2017AcquisitionStarbucks acquired the remaining 50% stake in its Chinese venture from long-term joint venture…
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $10B$21.3B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2013ProductIts first store released in San Bernardino, California and plans for a store in San Francisco were to be launched in…
- 2012MilestoneStarbucks Verismo became publicly available, consisting of a line of coffee makers that brew…
- 2009ProductStarbucks introduced a line of instant coffee packets, called VIA "Ready Brew"
- 2008AcquisitionJournalist Jack Schofield noted that "My Starbucks seems to be all sweetness and light at the moment
- 2003ProductPumpkin Spice Lattethe seasonal phenomenon
- 1995ProductThe beverage was introduced under the Starbucks name in 1995
- 1994AcquisitionStarbucks acquired The Coffee Connection, gaining the rights to use, make, market
- Jun 26, 1992IPOIPO on Nasdaqwent public at $17 with ~140 stores
- 1987MilestoneHoward Schultz buys Starbucksmerged his Il Giornale cafés — the espresso-bar model begins
- Mar 30, 1971FoundedFirst store at Pike Placethree friends selling beans and equipment, inspired by Alfred Peet
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Interest covered 14.8× by operating earnings
- High returns on invested capital (ROIC 36.7%)
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+4.5% YoY
- Profitable — makes more than it spends$1.98B TTM
- Profit growing — earnings are higher than last year-16.9% YoY
- Generates cash — cash left after running and investing$3.64B TTM
- Debt under control — could handle its obligations~3.9y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$104B market cap
- Not printing shares — share count not ballooning — you keep your slice-3.6% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 24/100
- Pays a dividend — returns cash to shareholdersyield 2.72%
- Valuation not extreme — price not wildly above earningsP/E 52.2
Peer comparisonStarbucks Corp vs 6 largest consumer cyclical peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| SBUX this company | $103.5B | 52.2 | +4.5% | 5.2% | Strained |
| AMZN Amazon.Com Inc | $2.8T | 20.9 | +15.8% | 17.4% | Mixed |
| TSLA Tesla, Inc. | $1.5T | 397.1 | +11.8% | 3.7% | Strong |
| NFLX NetFlix Inc | $292.8B | 21.4 | +16.0% | 28.2% | Solid |
| HD Home Depot, Inc. | $290.4B | 20.4 | -16.0% | 8.7% | Solid |
| DIS The Walt Disney Company | $186.5B | 21.7 | +4.6% | 8.7% | Solid |
| MCD McDonald's Corporation | $166.9B | 18.9 | +6.3% | 31.7% | Strained |
Head-to-head: SBUX vs AMZN · SBUX vs TSLA · SBUX vs NFLX
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/SBUX
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of SBUX on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $90.83 · market cap $104B.