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/SBUX
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Starbucks Corp

Starbucks Corp

SBUX
$105.49USD↓-2.66%-2.88 today

MARKET CAP

120.2B

P/E (TTM)

48.2x

FWD P/E

35.8x

DAY RANGE

$105 – $109

52W RANGE

$78
$109

AI Summary

Stalk
StalkMedium

SBUX remains in a Stage 2 advancing uptrend with a dominant Higher Highs & Higher Lows pattern confirming medium-term bullish permission, but recent exhaustion at new highs and an extension above rising EMAs have led to a pullback into the 9/21 EMA zone. While long- and medium-term structures stay intact, short-term timing is unfavorable. We will stalk for a pullback into the rising EMAs and prior consolidation support before executing.

  • ↑Q2 revenue $9.5B (+8% YoY); global comps +6%.
  • ↑Operating margin improved to 9.4% (+110 bps) via Green Apron efficiency.
  • ↓Cost inflation drove ~1/3 of North America margin contraction.
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The case for & against

Bull & Bear analysis

Bullish

Starbucks Corporation (NASDAQ: SBUX) is a leading global coffeehouse chain known for its high-quality coffee, beverages, and a diverse menu of food items. The company operates over 41,000 locations worldwide, positioning itself as a prominent player in the retail coffee market. Starbucks is currently navigating through a transformative "Back to Starbucks" strategy aimed at reviving growth amidst competitive pressures and changing consumer behaviors, while also focusing on enhancing customer experience through operational efficiencies and menu innovations.

Bull says

  • ↑Q2 revenue $9.5B (+8% YoY); global comps +6%.
  • ↑Operating margin improved to 9.4% (+110 bps) via Green Apron efficiency.
  • ↑Starbucks Rewards members hit 35.6 M (+4% YoY), boosting loyalty.
  • ↑In-house AI tools to cut $2 B costs, enhancing data and ops control.
  • ↑Delivery segment growth >30% YTD, diversifying revenue streams.
  • ↑Dividend yield 0.66%; debt leverage managed to support returns.

Bear says

  • ↓Cost inflation drove ~1/3 of North America margin contraction.
  • ↓P/E above industry; Book-to-Price signals overvaluation risk.
  • ↓Negative earnings yield and weak profitability factors pressure returns.
  • ↓Macro uncertainty and inflation threaten consumer traffic and comps.
  • ↓Execution risks in 'Back to Starbucks' turnaround remain high.
  • ↓High short interest underscores market skepticism on outlook.

Investment themes with SBUX

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q2 2026 · Mgmt. Guidance

Updated 04-29-2026neutral

Transcript signals

Bull points

  • Q2 marked a milestone for the business. We delivered growth on both the top and bottom line for the first time in more than two years. Consolidated second quarter company revenue was 9.5 billion, up 8% year over year. Global comps were a strong 6%, driven by terrific performance across the business, especially in the US. And our consolidated operating margin improved to 9.4%, up about 110 basis points. And as a result, earnings grew year over year. Positive comp trends have continued through April, and this gives us the confidence to take up our fiscal 2026 guidance for global comp growth to 5% or better and earnings per share to $2.25 to $2.45.
  • As shared, we grew both the top and bottom line in the second quarter. North America led our comp performance with both North America and US comps accelerating to more than 7%, driven by over four percentage points of transaction growth. We haven't seen this transaction strength in three years.
  • Q2 is proof our strategy is working.

Bear points

  • But I think we want to be cautious going forward because we're not sure how this will play out, you know, as the issues continue to escalate, whether it shows up in gas prices or utilities in other ways or other input costs like fuel costs.
  • As expected, approximately half of our international margin expansion was driven by held for sale accounting related to Starbucks China, which temporarily reduced store operating expenses and DNA by approximately $118 million in the quarter.
  • In North America, our Q2 operating margin contracted approximately 170 basis points to 10.2%, as our progress on operating leverage and cost discipline continue to partially offset our annualizing investments in Green Apron service. Our North America margins in the quarter were also impacted by roughly 190 basis points of product and distribution cost increases as a percentage of revenues and greater than anticipated legal accruals.
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