📊 SBUX Key Takeaways
Is Starbucks Corp. (SBUX) a Good Investment?
Starbucks faces severe balance sheet deterioration with negative stockholders' equity of -$8.4B, indicating liabilities exceed assets by a significant margin. Profitability metrics are critically weak with a 3.0% net margin and diluted EPS declining 50.8% year-over-year, coupled with modest revenue growth of 2.8%, suggesting the company is generating minimal earnings relative to its bloated debt structure.
Starbucks shows resilient top-line growth and solid cash generation, with $1.27B of free cash flow and acceptable interest coverage supporting near-term financial flexibility. However, profitability looks pressured, with only a 3.0% net margin, flat net income, sharply lower diluted EPS, and negative stockholders' equity indicating a more leveraged balance sheet. The fundamentals support stability but not a clearly strong growth-quality profile at this stage.
Why Buy Starbucks Corp. Stock? SBUX Key Strengths
- Positive operating cash flow of $1.6B demonstrates underlying business generates cash despite accounting insolvency
- Strong free cash flow margin of 12.8% indicates operational efficiency in converting revenue to discretionary cash
- Interest coverage ratio of 6.4x suggests ability to service debt obligations from operating income, reducing immediate default risk
- Positive revenue growth with strong free cash flow generation
- Operating cash flow comfortably exceeds capital spending
- Liquidity remains adequate with a current ratio above 1.0x and interest coverage of 6.4x
SBUX Stock Risks: Starbucks Corp. Investment Risks
- Negative stockholders' equity of -$8.4B represents technical insolvency and indicates the company has destroyed shareholder value through accumulated losses and debt accumulation
- Dramatic 50.8% decline in diluted EPS year-over-year signals deteriorating earnings power despite stable revenue, pointing to margin compression or increased share count
- High leverage with $16.1B long-term debt against only $3.4B cash creates refinancing risk and limits financial flexibility for strategic investments or downturns
- Weak net margin of 3.0% provides minimal cushion for operational disruptions or competitive pressures in the restaurant industry
- Negative stockholders' equity and sizable long-term debt weaken balance-sheet quality
- Low net margin suggests limited earnings cushion if costs or traffic worsen
- Flat net income and a steep diluted EPS decline point to pressured profitability per share
Key Metrics to Watch
- Quarterly net income trend and margin recovery trajectory toward positive equity restoration
- Debt reduction progress and refinancing needs given current liabilities of $40.6B versus assets of $32.2B
- Same-store sales growth and operating margin expansion to validate underlying business health beyond free cash flow
- Operating margin and net margin trend
- Free cash flow consistency relative to debt obligations
Starbucks Corp. (SBUX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Starbucks Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SBUX Profit Margin, ROE & Profitability Analysis
SBUX vs Consumer Sector: How Starbucks Corp. Compares
How Starbucks Corp. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Starbucks Corp. Stock Overvalued? SBUX Valuation Analysis 2026
Based on fundamental analysis, Starbucks Corp. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Starbucks Corp. Balance Sheet: SBUX Debt, Cash & Liquidity
SBUX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Starbucks Corp.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.58 reflects profitable operations.
SBUX Revenue Growth, EPS Growth & YoY Performance
SBUX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $9.4B | $293.3M | $0.26 |
| Q3 2025 | $9.1B | $558.3M | $0.49 |
| Q2 2025 | $8.6B | $384.2M | $0.34 |
| Q1 2025 | $9.4B | $780.8M | $0.69 |
| Q3 2024 | $9.1B | $1.1B | $0.93 |
| Q2 2024 | $8.6B | $772.4M | $0.68 |
| Q1 2024 | $8.7B | $855.2M | $0.74 |
| Q3 2023 | $8.2B | $912.9M | $0.79 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Starbucks Corp. Dividends, Buybacks & Capital Allocation
SBUX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Starbucks Corp. (CIK: 0000829224)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SBUX
What is the AI rating for SBUX?
Starbucks Corp. (SBUX) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are SBUX's key strengths?
Claude: Positive operating cash flow of $1.6B demonstrates underlying business generates cash despite accounting insolvency. Strong free cash flow margin of 12.8% indicates operational efficiency in converting revenue to discretionary cash. ChatGPT: Positive revenue growth with strong free cash flow generation. Operating cash flow comfortably exceeds capital spending.
What are the risks of investing in SBUX?
Claude: Negative stockholders' equity of -$8.4B represents technical insolvency and indicates the company has destroyed shareholder value through accumulated losses and debt accumulation. Dramatic 50.8% decline in diluted EPS year-over-year signals deteriorating earnings power despite stable revenue, pointing to margin compression or increased share count. ChatGPT: Negative stockholders' equity and sizable long-term debt weaken balance-sheet quality. Low net margin suggests limited earnings cushion if costs or traffic worsen.
What is SBUX's revenue and growth?
Starbucks Corp. reported revenue of $9.9B.
Does SBUX pay dividends?
Starbucks Corp. pays dividends, with $705.1M distributed to shareholders in the trailing twelve months.
Where can I find SBUX SEC filings?
Official SEC filings for Starbucks Corp. (CIK: 0000829224) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SBUX's EPS?
Starbucks Corp. has a diluted EPS of $0.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SBUX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Starbucks Corp. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SBUX stock overvalued or undervalued?
Valuation metrics for SBUX: ROE of N/A (sector avg: 18%), net margin of 3.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy SBUX stock in 2026?
Our dual AI analysis gives Starbucks Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SBUX's free cash flow?
Starbucks Corp.'s operating cash flow is $1.6B, with capital expenditures of $323.7M. FCF margin is 12.8%.
How does SBUX compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.0% (avg: 8%), ROE N/A (avg: 18%), current ratio 1.05 (avg: 1.5).