Starbucks Corp

Starbucks generates revenue through selling coffee beverages, food, and merchandise at thousands of company-operated and licensed stores globally. The company operates both traditional cafes and drive-through locations, with growing emphasis on digital ordering and delivery partnerships. Starbucks makes money from direct sales at company-owned stores and royalties, fees, and product sales to licensed operators. The business model emphasizes premium positioning, customer loyalty programs, and high-traffic real estate locations to drive transaction frequency and ticket size.

Starbucks has built a powerful global brand with strong customer loyalty and premium pricing power in coffee retail. The company benefits from mobile ordering technology, rewards program engagement, and expansion opportunities in international markets particularly China. Risks include labor cost pressures, unionization efforts in U.S. stores, execution challenges in China amid competition, and consumer spending sensitivity during economic downturns. Valuation typically reflects expectations for steady same-store sales growth and margin improvement.

Starbucks competes with Dunkin', which targets value-conscious customers with coffee and breakfast items, and McDonald's McCafé, leveraging its massive footprint and convenience. Independent and regional coffee chains like Peet's Coffee and Blue Bottle compete for premium customers in urban markets. In China, Luckin Coffee has emerged as a major digital-first competitor with aggressive pricing and rapid store expansion.

Starbucks pays a quarterly dividend yielding approximately 2.58%, demonstrating commitment to rewarding shareholders with consistent income. The company has steadily raised its dividend over many years, supported by strong cash flow generation from global store operations. Starbucks balances dividend growth with investments in store expansion, technology platforms, and share buybacks, providing investors with both income and growth potential from international expansion.

SBUX is currently trading at $92.70, up 0.78% in today's session. Over the past 52 weeks, the stock has traded between a low of $75.50 and a high of $104.82. The current price represents 59% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 45 analysts covering SBUX, the consensus rating is Hold — 24 rate it a buy, 16 hold, and 5 sell. The average price target sits at $298.57, implying 222% upside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Starbucks Corp generated $37.27B in revenue during fiscal year 2026, with $1.86B reaching the bottom line as net income. The net profit margin of 5.0% reflects the competitive nature of its industry.

SBUX trades at a P/E ratio of 77.24 on trailing earnings of $1.20 per share. That's well above the S&P 500 historical average of ~20-25x, which typically signals that investors are pricing in aggressive future growth. Comparing this multiple against Hotels, Restaurants & Leisure sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: +8.96% (3M), +8.24% (6M), -5.38% (1Y), +10.40% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether SBUX is outperforming or lagging the broader market.