Starbucks doubles down on baristas, not AI, to fix its customer crunch
Starbucks is staffing up thousands of US stores with additional staffing. Analysts say the investment in people could boost Starbucks' turnaround — if deployed correctly.
Fiscal Year: October - September
Starbucks Corporation (SBUX), listed on the NASDAQ, has a market capitalization of $105.40B. As of May 20, 2025, the stock is trading at $84.61 per share, offering investors a clear view of its current market value. Starbucks Corporation is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 30.78, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Starbucks Corporation also offers a dividend yield of 2.88%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Starbucks Corporation (SBUX) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Starbucks Corporation is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Starbucks Corporation, Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Starbucks Corporation is 34.77, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Starbucks Corporation (SBUX) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Starbucks Corporation (SBUX) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Starbucks Corporation (SBUX) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Starbucks Corporation. To access the full SS Score, consider upgrading your subscription.
Starbucks Corporation is a significant player in the industry sector, with a market capitalization of $105.40B and a competitive P/E ratio of 30.78. Investors should compare these metrics with industry peers to gauge whether Starbucks Corporation is outperforming or underperforming within its sector.
Starbucks is staffing up thousands of US stores with additional staffing. Analysts say the investment in people could boost Starbucks' turnaround — if deployed correctly.
Starbucks is contending with labor issues as its new management team seeks to overhaul the coffee giant.
Starbucks said the new rules would make its green aprons stand out and create a sense of familiarity for customers as it tries to establish a warmer, more welcoming feeling in its stores.
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CNBC's Jim Cramer breaks down why he's keeping an eye on shares of Starbucks.
Colombian processed food company Nutresa said it sold its 30% stake in the country's Starbucks franchise operator to a unit of Mexican restaurant chain Alsea.
Fortune and Korn Ferry's survey identified the top 50 Most Admired Companies, focusing on criteria like investment value, management quality, and social responsibility. Four dividend-paying companies,...
TORONTO, May 09, 2025 (GLOBE NEWSWIRE) -- The United Steelworkers union (USW) is proud to celebrate a significant milestone in the fight for workers' rights: the ratification of the first collective a...
Starbucks is planning to use zero-based budgeting starting during its next fiscal year. The coffee chain is trying to cut expenses to pay for its turnaround efforts.
Starbucks Corp (NASDAQ: SBUX) Q2 financials are not at all indicative of how the company's “Back to Starbucks” strategy has been proceeding in recent months, says Brian Niccol, the chief executive of ...
CNBC's Jim Cramer on Wednesday expressed faith in Starbucks CEO Brian Niccol's ability to execute a turnaround. The coffee chain's quarter missed expectations, and shares have fallen 5.66%.
'Mad Money' host Jim Cramer shares his take on the recent market action on Starbucks stock.
Over the past year, Starbucks has struggled with weaker sales trends, more cautious consumers and competition in the U.S. and in China.
Shares in coffee giant Starbucks Corporation (Nasdaq: SBUX) are down significantly in premarket trading this morning after the chain announced its Q2 2025 earnings results yesterday after the bell.
The Starbucks comeback campaign has created a sense of calm in coffeehouses, according to CEO Brian Niccol, who is confident the company will soon cash in on the vibe shift. The shares, meanwhile, nee...
Same-store sales fell for the fifth straight quarter. Transcript: Despite what CEO Brian Niccol sees as “momentum” in Starbucks' turnaround plan, the company had a disappointing first quarter.
Starbucks CEO Brian Niccol says the company is "definitely going to be a long-term player in China."
The decision to increase staffing follows pilot tests in a limited number of stores shortly after CEO Brian Niccol joined the company this past fall.
Shares of coffee store chain Starbucks (SBUX) are falling Wednesday morning after the company published a fiscal second quarter earnings and revenue miss on Tuesday — adjusted EPS of $0.41 (vs. estima...
Starbucks CEO Brian Niccol joins CNBC's ‘Squawk on the Street' to discuss the company's most recent earnings, how the company is investing in its turnaround, and more.
Supermicro (SMCI) plummeted in the premarket after telling investors to expect earnings far below Wall Street's estimates. Jenny Horne notes that investor distrust in the company is adding to the stee...
Sara Senatore, Bank of America Securities senior restaurants analyst, joins 'Squawk Box' to break down Starbucks' quarterly earnings results, impact of CEO Brian Niccol's turnaround plan, and more.
U.S. stock futures were mixed this morning, with the Dow futures gaining around 0.1% on Wednesday.
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2025 | 2.63B | Analyst x5 | |
2026 | 3.64B | 38.46% | Analyst x5 |
2027 | 4.72B | 29.64% | Analyst x1 |
2028 | 5.31B | 12.57% | Est @12.6% |
2029 | 5.78B | 8.86% | Est @8.9% |
2030 | 6.17B | 6.82% | Est @6.8% |
2031 | 6.51B | 5.40% | Est @5.4% |
2032 | 6.79B | 4.39% | Est @4.4% |
2033 | 7.03B | 3.45% | Est @3.5% |
2034 | 7.24B | 2.99% | Est @3.0% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2023A | 3.68B | 1.00 | 3.68B |
2024A | 3.32B | 1.00 | 3.32B |
2025E | 2.63B | 1.08 | 2.43B |
2026E | 3.64B | 1.17 | 3.10B |
2027E | 4.72B | 1.27 | 3.71B |
2028E | 5.31B | 1.37 | 3.86B |
2029E | 5.78B | 1.49 | 3.88B |
2030E | 6.17B | 1.61 | 3.83B |
2031E | 6.51B | 1.75 | 3.73B |
2032E | 6.79B | 1.89 | 3.59B |
2033E | 7.03B | 2.05 | 3.43B |
2034E | 7.24B | 2.22 | 3.26B |
Terminal | 128.21B | 2.22 | 57.84B |
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