# Starbucks Corp (SBUX) — Stock CV

Starbucks Corp 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.

> 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.

## Identity

- **Ticker**: SBUX
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Eating & Drinking Places
- **Headquarters**: SEATTLE, WA
- **Employees**: 381 000
- **Website**: https://www.starbucks.com
- **Market cap**: $104B
- **Last price**: $90.83
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $38.3B
- **Net income**: $1.98B
- **Free cash flow**: $3.64B
- **Net debt**: $14.3B
- **P/E**: 52.2
- **Revenue growth (YoY)**: 4.5%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 44 |
| Growth | 57 |
| Profitability | 75 |
| Health | 36 |
| Quality | 80 |
| Moat | 62 |

## Qualifications (beginner checklist) — 8 of 11 passed

- [x] Revenue growing — +4.5% YoY
- [x] Profitable — $1.98B TTM
- [ ] Profit growing — -16.9% YoY
- [x] Generates cash — $3.64B TTM
- [x] Debt under control — ~3.9y of cash flow to repay
- [x] Established company — $104B market cap
- [x] Not printing shares — -3.6% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — health score 24/100
- [x] Pays a dividend — yield 2.72%
- [ ] Valuation not extreme — P/E 52.2

## Experience (career milestones)

- **2022** — Starbucks launched a line of canned energy drinks, called "Baya"
- **Dec 9, 2021** — Finally, on December 9, 2021, the workers at the Elmwood Avenue store became the first unionized Starbucks workers…
- **FY2018** — Best year on record: $4.52B net income
- **2017** — Starbucks acquired the remaining 50% stake in its Chinese venture from long-term joint venture…
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $21.3B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2013** — Its first store released in San Bernardino, California and plans for a store in San Francisco were to be launched in…
- **2012** — Starbucks Verismo became publicly available, consisting of a line of coffee makers that brew…
- **2009** — Starbucks introduced a line of instant coffee packets, called VIA "Ready Brew"
- **2008** — Journalist Jack Schofield noted that "My Starbucks seems to be all sweetness and light at the moment
- **2003** — Pumpkin Spice Latte: the seasonal phenomenon
- **1995** — The beverage was introduced under the Starbucks name in 1995
- **1994** — Starbucks acquired The Coffee Connection, gaining the rights to use, make, market
- **Jun 26, 1992** — IPO on Nasdaq: went public at $17 with ~140 stores
- **1987** — Howard Schultz buys Starbucks: merged his Il Giornale cafés — the espresso-bar model begins
- **Mar 30, 1971** — First store at Pike Place: three friends selling beans and equipment, inspired by Alfred Peet

## Strengths

- Interest covered 14.8× by operating earnings
- High returns on invested capital (ROIC 36.7%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $29.1B | $4.20B | $4.52B |
| FY2022 | $32.3B | $3.28B | $2.56B |
| FY2023 | $36.0B | $4.12B | $3.68B |
| FY2024 | $36.2B | $3.76B | $3.32B |
| FY2025 | $37.2B | $1.86B | $2.44B |

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Source: https://stockcv.com/SBUX — derived from company filings; may be delayed or incomplete. Information, not investment advice.