Download PDF

1. Company Snapshot

1.a. Company Description

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide.The company operates through three segments: North America, International, and Channel Development.Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.


The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts.The company offers its products under the Starbucks, Teavana, Seattle's Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brands.As of October 3, 2021, it operated 16,826 company-operated and licensed stores in North America; and 17,007 company-operated and licensed stores internationally.


The company was founded in 1971 and is based in Seattle, Washington.

Show Full description

1.b. Last Insights on SBUX

Breaking News: Starbucks Corporation reported Q2 2026 earnings, beating estimates with revenue rising 8.8% year-over-year to $9.53 billion. Global comparable store sales increased 6.2%, with average revenue per company-operated restaurant up to $362,592. Operating margin improved to 9.4%, up 110 basis points. The company lifted its 2026 outlook under its "Back to Starbucks" plan. A recent analysis reiterated a buy rating, citing resilient growth, margin expansion, and an attractive valuation, with a target price near $109.

1.c. Company Highlights

2. Starbucks Q2 FY2026: Reviving Growth, Sharpening Margins

Starbucks delivered a landmark quarter, reporting consolidated revenue of $9.5 billion, up 9% YoY, with global comparable store growth of 6.2%. Operating margin surged to 9.4%, a 110‑basis‑point lift, driving earnings per share to $0.50—22% higher than the $0.4253 estimate. The company’s P/E of 74.1 and P/S of 2.88 reflect the premium investors place on its resilient brand and expansion prospects. <sup>[1]</sup>

Publication Date: Apr -29

📋 Highlights
  • Revenue & Margin Growth:: Consolidated revenue $9.5B (+9% YoY), operating margin 9.4% (+110 bps).
  • North America Performance:: Revenue $6.9B (+6%), comp sales +7.1%, transactions up >4%.
  • International Recovery:: Revenue +10%, comp sales +2.6%, all 10 largest markets positive for 9Qs.
  • Rewards Program Growth:: 35.6M active members (+4% YoY), driven by lower stars redemption.
  • EPS & Guidance Update:: EPS $0.50 (+22% YoY), 2026 EPS guidance raised to $2.25–$2.45.

Revenue and Growth

North America generated $6.9 billion, a 6% rise, with comparable sales up 7.1% and transaction volume up 4%. International revenue grew 10%, with comp sales at 2.6% across all 10 major markets, including a 50‑basis‑point lift in China. The 35.6 million active Starbucks Rewards members—4% YoY—underscore the program’s pull on repeat traffic.

Margin Dynamics

International operating margin jumped 790 basis points to 20.3%, while North America’s margin contracted 170 basis points to 10.2%. The improvement stems from China’s deconsolidation and held‑for‑sale accounting, coupled with a $2 billion cost‑savings program already delivering G&A reductions of 5.5%.

International Surge

All core overseas markets posted positive comps for the first time in nine quarters, signaling a robust rebound. China’s transaction‑led growth, supported by a refreshed menu and local partnerships, is a key driver of the 10% revenue uptick and the company’s plan to deconsolidate China as a licensed portfolio valued at $13 billion.

Rewards and Customer Loyalty

The Rewards program’s new lower‑stars redemption option and customizable energy offerings have increased member frequency. Lower‑income segments are attracted by the value proposition, boosting overall foot traffic and driving the 4% growth in active members.

Cost Management and EPS Outlook

Starbucks is pursuing a multi‑year $2 billion savings initiative, with near‑term G&A cuts and labor productivity improvements via new rosters and technology. The company’s EPS guidance for FY2026 is $2.25–$2.45, up from $2.10–$2.30, reflecting expected margin expansion and a flat revenue outlook.

Strategic Outlook and Guidance

Guidance now targets 5%+ global comps, with U.S. comps at 5%+. Starbucks plans 600–650 new coffeehouses, accelerating international openings in the next two quarters. The firm remains cautious on macro risks but believes that continued innovation in refreshers, coffee, and espresso, coupled with operational excellence, will sustain the momentum and support a top‑end EPS outcome.

3. NewsRoom

Card image cap

Starbucks Stock Is Soaring This Year, and It Still Boasts an Attractive Dividend Yield. Time to Buy?

Apr -30

Source: fool.com

Card image cap

Starbucks' Traffic Rebound Powers Strong Comp Growth in Q2 FY26

Apr -30

Source: zacks.com

Card image cap

Starbucks Soars to New High on CEO's ‘Turn' Signal. Is the Easy Money Already Gone?

Apr -30

Source: 247wallst.com

Card image cap

Starbucks is heading to Nashville — and it's part of a bigger fast-food migration south

Apr -30

Source: businessinsider.com

Card image cap

Starbucks, Robinhood & SoFi: What's Really Moving Markets Right Now

Apr -29

Source: youtube.com

Card image cap

Covenant Asset Management LLC Reduces Stock Position in Starbucks Corporation $SBUX

Apr -29

Source: defenseworld.net

Card image cap

Starbucks customers are coming back. Profits haven't caught up yet.

Apr -29

Source: reuters.com

Card image cap

Brian Niccol Promised to Get 'Back to Starbucks.' Wall Street Says 'Starbucks Is Back.

Apr -29

Source: investopedia.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.50%)

6. Segments

North America

Expected Growth: 6.3%

Starbucks' strong brand recognition, increasing demand for premium coffee, and strategic store expansion in the US and Canada will drive growth.

International

Expected Growth: 6.3%

Starbucks International's growth is driven by increasing demand for premium coffee, expanding presence in emerging markets, and strategic partnerships to enhance customer experience.

Channel Development

Expected Growth: 10.4%

Starbucks' Channel Development segment is poised for growth, driven by expanding digital platforms, strategic retail store openings, and increasing penetration in the grocery channel, all of which will enhance customer reach and drive sales.

Corporate and Other

Expected Growth: 4.1%

Starbucks' headquarters and support centers will drive growth through strategic planning, cost savings initiatives, and investments in digital transformation, supply chain optimization, and employee development.

7. Detailed Products

Beverages

Starbucks offers a wide range of hot and cold beverages, including coffee, tea, iced coffee, Refreshers, and seasonal offerings.

Coffee

Starbucks sources high-quality Arabica coffee beans from around the world and roasts them in-house to bring out the unique flavors and aromas.

Food

Starbucks offers a variety of baked goods, sandwiches, salads, and snacks, including healthy and indulgent options.

Merchandise

Starbucks sells a range of branded merchandise, including mugs, tumblers, and accessories.

Gift Cards

Starbucks offers digital and physical gift cards that can be used to purchase Starbucks products and experiences.

Starbucks Rewards

Starbucks Rewards is a loyalty program that rewards customers for their purchases and offers personalized benefits and offers.

Mobile Order and Pay

Starbucks offers a mobile ordering and payment service that allows customers to order and pay for their drinks and food ahead of time.

8. Starbucks Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Starbucks faces moderate threat from substitutes such as tea, juice, and other beverages. However, the company's strong brand loyalty and customer experience help to mitigate this threat.

Bargaining Power Of Customers

Starbucks customers have low bargaining power due to the company's strong brand and limited alternatives. However, the company's customer-centric approach helps to maintain customer loyalty.

Bargaining Power Of Suppliers

Starbucks has a diversified supply chain and long-term contracts with suppliers, reducing the bargaining power of suppliers. The company's scale and global presence also give it negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the coffee shop industry, including high startup costs and the need for a strong brand and supply chain.

Intensity Of Rivalry

The coffee shop industry is highly competitive, with many established players and a high level of rivalry. Starbucks competes with other coffee chains, as well as independent coffee shops and cafes.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 148.15%
Debt Cost 3.95%
Equity Weight -48.15%
Equity Cost 8.76%
WACC 1.63%
Leverage -307.70%

11. Quality Control: Starbucks Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
McDonald's

A-Score: 6.0/10

Value: 3.6

Growth: 4.7

Quality: 6.5

Yield: 4.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Yum!

A-Score: 5.9/10

Value: 4.0

Growth: 4.7

Quality: 6.4

Yield: 4.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
PulteGroup

A-Score: 5.8/10

Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Booking

A-Score: 5.8/10

Value: 3.6

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Starbucks

A-Score: 5.0/10

Value: 3.3

Growth: 5.6

Quality: 4.5

Yield: 5.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Chipotle Mexican Grill

A-Score: 3.8/10

Value: 1.2

Growth: 8.4

Quality: 5.9

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

105.33$

Current Price

105.33$

Potential

0.00%

Expected Cash-Flows