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Starbucks Corporation
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S&P 500 Nasdaq 100
🏹 Trader: 🎯 Near 52W High 💎 VCP Breakout | BRS 80 Ready · stale View all →
$121.6B
Market Cap
72.7
P/E
1.65
PEG
16.3%
ROCE
—
ROE
—
D/E
10.9%
OPM
-2.7%
% from 52W High
77
α RS
🔍 SBUX is showing a sector-leadership setup because Sector RRG has Consumer Discretionary in the Leading quadrant with the trail still strengthening, it matches 2 of 39 tracked screener presets, RS Rating is 77, and it has maintained a 33-day Near 52-Week High momentum persistence. Net: Broad signal stack, not a recommendation. ? RRG Conviction RS Rating Momentum Streaks
Sources
Consumer Discretionary in Leading quadrant · Conviction 2/39 · RS Rating 77 · Near 52-Week High streak: 33d
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About

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

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Good quarter Investor Presentation One-Pager? Q3 2026
Consolidated Net Revenues
$9.3B
-1% YoY
Global Comparable Store Sales
7.9%
+4.2% transactions
Non-GAAP Operating Margin
14.4%
+430 bps YoY
Non-GAAP EPS
$0.85
+70% YoY
What Went Right
  • Fourth consecutive quarter of positive global comps: global comps +7.9% and U.S. comps +7.9% in Q3.
  • Consolidated non-GAAP operating margin expanded 430 bps to 14.4%; non-GAAP EPS rose 70% to $0.85.
  • North America operating margin grew year-over-year for the first time since Q1 FY24; over 1,000 coffeehouse uplifts completed ahead of plan.
What to Watch
  • Consolidated revenue fell 1% YoY to $9.3B due to the China JV deconsolidation.
  • North America saw 41 net licensed-store closures; NA company-operated unit growth may remain modest through FY27, with potential closures of underperforming stores.
  • U.S. consumer sentiment remains pressured and Q4 will face tougher year-over-year traffic comparisons.
Management Guidance
  • Q4 FY26 U.S. comp growth expected to be 6.5% or better.
  • FY26 U.S. comp growth of a little more than 6%; global comp growth nearing 6%.
  • FY26 consolidated net revenues expected flat to slightly higher YoY.
  • FY26 consolidated operating margin guidance raised to greater than 11%.
  • FY26 non-GAAP EPS guidance raised to $2.55-$2.65.
  • FY26 net new store openings still about 600-650, with international as the meaningful unit-growth contributor.
Investor Lens
The investment thesis is stronger after this call: comp growth is broad-based, margin expansion is increasingly flowing to EPS, and management raised full-year guidance. The China deconsolidation reduces reported revenue but creates a capital-light, margin-accretive JV structure. North America unit growth will stay modest near term, and store closures are a watch item, but the operating turnaround is clearly on track.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Back to Starbucks momentum: global comps up 7.9%, EPS up 70%.
Revenue
Consolidated net revenues were $9.3B, down 1% YoY due to China deconsolidation. North America revenue rose 7% to $7.4B, while international segment revenue fell 34% to $1.3B on the China JV structural change.
Profitability
Non-GAAP EPS increased 70% to $0.85; GAAP EPS was $0.91, up 86%. This was the second consecutive quarter of consolidated margin expansion and the fourth consecutive quarter of positive global comps.
Margins
Consolidated non-GAAP operating margin expanded 430 bps to 14.4%. North America operating margin expanded roughly 280 bps YoY, including more than 100 bps of improvement excluding tariff refunds; international operating margin reached 19.1%.
Balance Sheet
Starbucks used a portion of China transaction proceeds to repay approximately $1.8B of debt, reducing leverage to 2.9x. No additional cash flow or capital expenditure detail was provided.
Key Risks
Management flagged continued U.S. consumer sentiment pressure, tougher Q4 traffic comparisons, and potential North American store closures. Coffee cost headwinds are easing but remain a factor, and Q3 margin benefited from tariff refunds that normalize on a year-to-date basis.
Outlook
For Q4, management expects U.S. comp growth of 6.5% or better. Full-year FY26 guidance was raised to EPS of $2.55-$2.65, revenue flat to slightly higher, and consolidated operating margin above 11%.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-07-29
Q3 saw strong global comp growth, margin expansion, and EPS up 70% year-over-year, despite a 1% revenue dip from the China transition. North America led with 8.1% comp growth, and international comps remained positive. Full-year guidance was raised, with continued investment in innovation and store uplifts.
Q2 2026 Q2 2026 2026-04-28
Q2 delivered 8% revenue growth and 22% EPS growth, with global comps up 6.2% and strong U.S. and international performance. Raised FY26 comp and EPS guidance, transitioned China to a JV, and saw record Starbucks Rewards engagement.
Q1 2026 Q1 2026 2026-01-28
Q1 FY26 saw 5% global revenue growth to $9.9B, with strong comp sales and transaction gains in both North America and international markets. Strategic investments in service, technology, and menu innovation are driving brand momentum, while margin pressures are expected to ease in H2.
Q4 2025 Q4 2025 2025-10-29
Q4 saw 5% global revenue growth and the first positive comp quarter in seven quarters, driven by international strength and operational improvements. Investments in service, menu innovation, and store experience are building momentum, despite margin pressure from inflation.
Q3 2025 Q3 2025 2025-07-29
Q3 FY25 revenue rose 3% to $9.5B, but global comps fell 2% and EPS dropped 45% year-over-year due to heavy investments in labor and operational transformation. The Green Apron Service model and digital innovation are being rapidly scaled, with early signs of improved partner engagement and customer experience.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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