Stock Analysis

Stock Analysis · Starbucks Corporation (SBUX)

Overview

Starbucks Corporation is a global coffee company that operates and licenses coffee shops and sells beverages, food, and other products. Its core business is serving drinks (especially coffee-based beverages) and food through company-operated and licensed stores, complemented by branded products sold through other channels and a large loyalty and digital ordering ecosystem.

In its financial reporting, Starbucks organizes operations mainly into two reportable segments: North America (primarily the U.S. and Canada) and International (including China and other markets). In addition, the company reports Channel Development (branded products sold outside Starbucks stores, such as packaged coffee and ready-to-drink offerings, depending on partnerships and distribution arrangements).

At a practical level, Starbucks’ revenue is typically driven by the following sources (largest to smallest; exact percentages can vary by year and are detailed in company filings):

Company-operated stores (sales of beverages and food directly to customers)
Licensed stores (royalties and product sales to licensed partners)
Channel Development (branded products sold through consumer packaged goods and other channels)
Other (smaller items such as certain retail and ancillary revenues)

The company’s economics are shaped by store traffic, pricing, product mix (for example, premium beverages), and input costs like coffee, dairy, and labor. The general flow of profitability also depends heavily on operating costs tied to running stores and supporting the brand globally.

Over the periods shown, total revenue rose overall (from about $29.1B in fiscal 2021 to about $37.2B in fiscal 2025). At the same time, costs and operating expenses increased, and fiscal 2025 shows notably lower operating income and net income than prior years in the same view—highlighting how sensitive results can be to cost pressure and operating conditions.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 07, 2026
Context
Sector	Consumer Cyclical
Industry	Restaurants
Market Cap ⓘ	$113.30B
Beta ⓘ	0.94
Fundamental
P/E Ratio ⓘ	82.88	29.16
Profit Margin ⓘ	3.63%	7.98%
Revenue Growth ⓘ	5.50%	6.90%
Debt to Equity ⓘ	-399.57%	69.29%
PEG ⓘ	1.61
Free Cash Flow ⓘ	$2.34B

Starbucks’ market capitalization is about $113.3B, and the stock’s beta of ~0.94 suggests price moves that have often been somewhat close to the broader market rather than dramatically more volatile. The latest P/E ratio is ~82.9, which is well above the industry median (~29.2) in the comparison set provided. Recent profitability also looks weaker versus peers on this snapshot: profit margin is ~3.6% versus an industry median ~8.0%. Year-over-year revenue growth is about 5.5% compared with an industry median ~6.9%. Free cash flow over the trailing twelve months is about $2.34B, and the PEG ratio (~1.61) indicates the valuation is high relative to growth assumptions implied by that metric.

Growth (Medium)

Starbucks operates in the restaurant and specialty coffee space, which tends to grow over time with population, income levels, urbanization, and consumer demand for convenient food and beverages. Over long periods, branded quick-service concepts can expand through new store openings, higher sales per store, and growth in licensed formats—especially in international markets where store density is still building.

Starbucks’ strategy has historically emphasized brand strength, product innovation (seasonal and premium beverages), loyalty and digital engagement (mobile ordering and personalized offers), and a mix of company-operated and licensed stores to balance control and capital efficiency. Those themes generally align with how large restaurant brands scale: increasing convenience, broadening dayparts, and using data-driven marketing to improve frequency.

The year-over-year revenue growth pattern shown is uneven: strong growth earlier in the period, a softer patch with slightly negative growth through parts of fiscal 2024, then a return to modest positive growth by fiscal 2025 (around the mid-single digits in the latest point). This kind of re-acceleration can matter for long-term narratives, but it also shows that Starbucks is not immune to macro slowdowns, competitive pressure, or operational constraints.

Free cash flow has remained positive over the period shown, but it has fluctuated meaningfully (roughly $2.47B in 2021, $3.61B in 2022, $2.75B in 2023, $3.95B in 2024, and $2.77B in 2025 based on the displayed trailing periods). For a consumer brand, sustained free cash flow is important because it supports reinvestment in stores and equipment, marketing, and shareholder returns; volatility, however, can signal periods of higher costs or investment needs.