Starbucks
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Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The last earnings update was 50 days ago. More info.
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SBUX Share Price and Events
7 Day Returns
1 Year Returns
SBUX Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Starbucks (SBUX) | 2.2% | 1.3% | 15.3% | 22.5% | 21.8% | 94.8% |
| US Hospitality | 1.8% | 0.4% | 16.7% | -8.6% | 36.5% | 17.5% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- SBUX outperformed the Hospitality industry which returned -8.6% over the past year.
- SBUX outperformed the Market in United States of America which returned 3% over the past year.
SBUX Value
Is Starbucks undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Starbucks
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Starbucks.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 26 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Hospitality Unlevered Beta | Simply Wall St/ S&P Global | 0.97 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.965 (1 + (1- 21%) (10.25%)) |
1.029 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.03 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.029 * 5.96%) |
8.86% |
Discounted Cash Flow Calculation for NasdaqGS:SBUX using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Starbucks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.86%) |
|
|---|---|---|---|
| 2019 | 2,720.58 | Analyst x5 | 2,499.10 |
| 2020 | 3,071.80 | Analyst x5 | 2,592.02 |
| 2021 | 3,408.50 | Analyst x2 | 2,641.99 |
| 2022 | 3,601.00 | Analyst x1 | 2,563.97 |
| 2023 | 3,969.00 | Analyst x1 | 2,595.94 |
| 2024 | 4,229.78 | Est @ 6.57% | 2,541.28 |
| 2025 | 4,458.96 | Est @ 5.42% | 2,460.89 |
| 2026 | 4,664.60 | Est @ 4.61% | 2,364.80 |
| 2027 | 4,853.38 | Est @ 4.05% | 2,260.20 |
| 2028 | 5,030.63 | Est @ 3.65% | 2,152.03 |
| Present value of next 10 years cash flows | $24,672.22 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $5,030.63 × (1 + 2.73%) ÷ (8.86% – 2.73%) |
$84,274.84 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $84,274.84 ÷ (1 + 8.86%)10 |
$36,051.53 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $24,672.22 + $36,051.53 |
$60,723.75 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $60,723.75 / 1,243.60 |
$48.83 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $48.83 |
| Current discount | Discount to share price of
$71.63
= -1 x ($71.63 - $48.83) / $48.83 |
-46.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Starbucks is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Starbucks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Starbucks's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-30) in USD | $2.26 |
| NasdaqGS:SBUX Share Price ** | NasdaqGS (2019-03-20) in USD | $71.63 |
| United States of America Hospitality Industry PE Ratio | Median Figure of 73 Publicly-Listed Hospitality Companies | 20.95x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Starbucks.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:SBUX Share Price ÷ EPS (both in USD) = 71.63 ÷ 2.26 |
31.64x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Starbucks is overvalued based on earnings compared to the US Hospitality industry average.
- Starbucks is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Starbucks's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 31.64x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts |
11.8%per year |
| United States of America Hospitality Industry PEG Ratio | Median Figure of 52 Publicly-Listed Hospitality Companies | 1.55x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 31.64x ÷ 11.8% |
2.69x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Starbucks is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Starbucks's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-30) in USD | $-2.32 |
| NasdaqGS:SBUX Share Price * | NasdaqGS (2019-03-20) in USD | $71.63 |
| United States of America Hospitality Industry PB Ratio | Median Figure of 108 Publicly-Listed Hospitality Companies | 2.15x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:SBUX Share Price ÷ Book Value per Share (both in USD) = 71.63 ÷ -2.32 |
-30.87x |
* Primary Listing of Starbucks.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Starbucks has negative assets, we can't compare the value of its assets to the US Hospitality industry average.
Value checks
We assess Starbucks's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check) Starbucks has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
SBUX Future Performance
How is Starbucks expected to perform in the next 1 to 3 years based on estimates from 26 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Starbucks's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Starbucks's earnings growth is positive but not above the United States of America market average.
- Starbucks's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:SBUX Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts | 11.8% |
| NasdaqGS:SBUX Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts | 7.4% |
| United States of America Hospitality Industry Earnings Growth Rate | Market Cap Weighted Average | 11.2% |
| United States of America Hospitality Industry Revenue Growth Rate | Market Cap Weighted Average | 9.7% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 26 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | 35,829 | 1 | ||
| 2022-09-30 | 33,349 | 1 | ||
| 2021-09-30 | 30,570 | 5,541 | 3,882 | 8 |
| 2020-09-30 | 28,303 | 4,980 | 3,503 | 26 |
| 2019-09-30 | 26,283 | 4,598 | 3,056 | 26 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-30 | 25,279 | 12,483 | 3,029 |
| 2018-09-30 | 24,720 | 11,938 | 4,518 |
| 2018-07-01 | 24,114 | 4,597 | 4,551 |
| 2018-04-01 | 23,465 | 4,549 | 4,390 |
| 2017-12-31 | 22,728 | 4,556 | 4,383 |
| 2017-10-01 | 22,387 | 4,252 | 2,885 |
| 2017-07-02 | 22,400 | 4,467 | 2,897 |
| 2017-04-02 | 21,976 | 4,381 | 2,960 |
| 2017-01-01 | 21,675 | 4,469 | 2,882 |
| 2016-10-02 | 21,316 | 4,698 | 2,818 |
| 2016-06-26 | 20,520 | 4,237 | 2,669 |
| 2016-03-27 | 20,163 | 3,934 | 2,542 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 26 Analyst Estimates (S&P Global) | See Below |
All data from Starbucks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | ||||
| 2022-09-30 | ||||
| 2021-09-30 | 3.42 | 3.50 | 3.33 | 2.00 |
| 2020-09-30 | 3.01 | 3.10 | 2.82 | 12.00 |
| 2019-09-30 | 2.44 | 2.58 | 2.24 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-30 | 2.26 |
| 2018-09-30 | 3.27 |
| 2018-07-01 | 3.23 |
| 2018-04-01 | 3.08 |
| 2017-12-31 | 3.04 |
| 2017-10-01 | 1.99 |
| 2017-07-02 | 1.99 |
| 2017-04-02 | 2.03 |
| 2017-01-01 | 1.97 |
| 2016-10-02 | 1.91 |
| 2016-06-26 | 1.81 |
| 2016-03-27 | 1.71 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Starbucks's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Starbucks has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
SBUX Past Performance
How has Starbucks performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Starbucks has delivered over 20% year on year earnings growth in the past 5 years.
- Starbucks's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Starbucks's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.
Earnings and Revenue History
All data from Starbucks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-30 | 25,278.50 | 3,028.70 | 1,826.30 | |
| 2018-09-30 | 24,719.50 | 4,518.30 | 1,755.40 | |
| 2018-07-01 | 24,114.10 | 4,551.40 | 1,709.00 | |
| 2018-04-01 | 23,465.30 | 4,390.10 | 1,565.40 | |
| 2017-12-31 | 22,727.60 | 4,383.10 | 1,486.70 | |
| 2017-10-01 | 22,386.80 | 2,884.70 | 1,450.70 | |
| 2017-07-02 | 22,399.70 | 2,897.00 | 1,409.40 | |
| 2017-04-02 | 21,976.10 | 2,960.00 | 1,407.70 | |
| 2017-01-01 | 21,675.30 | 2,881.90 | 1,411.50 | |
| 2016-10-02 | 21,315.90 | 2,817.70 | 1,408.90 | |
| 2016-06-26 | 20,519.50 | 2,669.30 | 1,386.90 | |
| 2016-03-27 | 20,162.70 | 2,541.70 | 1,352.00 | |
| 2015-12-27 | 19,733.00 | 2,461.90 | 1,327.40 | |
| 2015-09-27 | 19,162.70 | 2,757.40 | 1,196.70 | |
| 2015-06-28 | 18,428.60 | 2,692.70 | 1,248.10 | |
| 2015-03-29 | 17,701.20 | 2,578.80 | 1,229.00 | |
| 2014-12-28 | 17,011.40 | 2,510.50 | 1,163.70 | |
| 2014-09-28 | 16,447.80 | 2,068.10 | 1,107.90 | |
| 2014-06-29 | 16,055.80 | 248.30 | 1,079.80 | |
| 2014-03-30 | 15,637.50 | 153.40 | 1,059.90 | |
| 2013-12-29 | 15,313.20 | 116.80 | 1,049.60 | |
| 2013-09-29 | 14,866.80 | 8.30 | 1,038.90 | |
| 2013-06-30 | 14,442.20 | 1,599.00 | 1,011.00 | |
| 2013-03-31 | 14,010.40 | 1,514.40 | -991.70 | |
| 2012-12-30 | 13,656.80 | 1,433.90 | 937.10 | |
| 2012-09-30 | 13,276.80 | 1,383.80 | 896.70 | |
| 2012-07-01 | 12,967.10 | 1,383.40 | 1,708.60 | |
| 2012-04-01 | 12,595.70 | 1,329.50 | 4,567.80 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if Starbucks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
- Starbucks used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
- Starbucks's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Starbucks's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Starbucks has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
SBUX Health
How is Starbucks's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Starbucks's finances.
The net worth of a company is the difference between its assets and liabilities.
- Starbucks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Starbucks's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Starbucks has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Starbucks Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-30 | -2,878.80 | 9,130.70 | 4,991.80 |
| 2018-09-30 | 1,175.80 | 9,493.70 | 8,937.80 |
| 2018-07-01 | 3,996.70 | 6,798.90 | 1,976.60 |
| 2018-04-01 | 4,717.70 | 6,534.80 | 2,242.50 |
| 2017-12-31 | 5,758.90 | 4,916.40 | 3,768.00 |
| 2017-10-01 | 5,457.00 | 3,932.60 | 2,690.90 |
| 2017-07-02 | 5,849.50 | 3,935.50 | 3,006.10 |
| 2017-04-02 | 5,611.40 | 3,967.50 | 2,394.90 |
| 2017-01-01 | 5,803.10 | 3,185.70 | 2,175.40 |
| 2016-10-02 | 5,890.70 | 3,585.20 | 2,263.20 |
| 2016-06-26 | 5,724.00 | 3,602.20 | 2,316.30 |
| 2016-03-27 | 5,096.40 | 2,996.50 | 1,417.60 |
| 2015-12-27 | 5,983.40 | 2,347.70 | 2,379.90 |
| 2015-09-27 | 5,819.80 | 2,347.50 | 1,611.40 |
| 2015-06-28 | 5,858.30 | 2,939.80 | 2,175.20 |
| 2015-03-29 | 6,010.70 | 2,095.20 | 1,849.80 |
| 2014-12-28 | 6,157.80 | 2,087.70 | 1,953.10 |
| 2014-09-28 | 5,273.70 | 2,048.30 | 1,843.80 |
| 2014-06-29 | 5,070.80 | 2,048.10 | 1,196.30 |
| 2014-03-30 | 4,947.10 | 2,048.00 | 1,489.50 |
| 2013-12-29 | 4,889.50 | 2,047.90 | 1,702.80 |
| 2013-09-29 | 4,482.30 | 1,299.40 | 3,233.80 |
| 2013-06-30 | 5,747.60 | 549.70 | 2,044.30 |
| 2013-03-31 | 5,327.50 | 549.60 | 1,697.70 |
| 2012-12-30 | 5,175.00 | 549.60 | 2,459.70 |
| 2012-09-30 | 5,114.50 | 549.60 | 2,037.00 |
| 2012-07-01 | 5,388.00 | 549.60 | 2,497.60 |
| 2012-04-01 | 5,136.70 | 549.60 | 2,234.30 |
- Starbucks has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
- Irrelevant to check if Starbucks's debt level has increased considering it has negative shareholder equity.
- Debt is well covered by operating cash flow (136.7%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 16.8x coverage).
Financial health checks
We assess Starbucks's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Starbucks has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
SBUX Dividends
What is Starbucks's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Starbucks
shares you are expected to receive
$40
in your first year as a dividend.
Dividend Amount
- Starbucks's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
- Starbucks's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 26 Analyst Estimates (S&P Global) | See Below |
| United States of America Hospitality Industry Average Dividend Yield | Market Cap Weighted Average of 46 Stocks | 2.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-09-30 | 2.39 | 1.00 |
| 2022-09-30 | 2.17 | 1.00 |
| 2021-09-30 | 1.87 | 6.00 |
| 2020-09-30 | 1.69 | 13.00 |
| 2019-09-30 | 1.49 | 13.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-29 | 1.440 | 2.057 |
| 2019-01-24 | 1.440 | 2.168 |
| 2018-11-16 | 1.440 | 2.220 |
| 2018-11-01 | 1.440 | 2.172 |
| 2018-06-19 | 1.440 | 2.683 |
| 2018-04-26 | 1.200 | 2.098 |
| 2018-01-31 | 1.200 | 2.089 |
| 2018-01-25 | 1.200 | 2.073 |
| 2017-11-17 | 1.200 | 2.045 |
| 2017-11-02 | 1.200 | 2.113 |
| 2017-08-01 | 1.000 | 1.835 |
| 2017-07-27 | 1.000 | 1.803 |
| 2017-05-02 | 1.000 | 1.662 |
| 2017-04-27 | 1.000 | 1.653 |
| 2017-01-31 | 1.000 | 1.755 |
| 2017-01-26 | 1.000 | 1.773 |
| 2016-11-03 | 1.000 | 1.758 |
| 2016-07-27 | 0.800 | 1.463 |
| 2016-07-21 | 0.800 | 1.381 |
| 2016-04-26 | 0.800 | 1.430 |
| 2016-04-21 | 0.800 | 1.369 |
| 2016-01-21 | 0.800 | 1.361 |
| 2015-11-12 | 0.800 | 1.332 |
| 2015-10-29 | 0.800 | 1.289 |
| 2015-07-28 | 0.640 | 1.114 |
| 2015-07-23 | 0.640 | 1.123 |
| 2015-04-28 | 0.640 | 1.218 |
| 2015-04-23 | 0.640 | 1.263 |
| 2015-01-27 | 0.640 | 1.369 |
| 2015-01-22 | 0.640 | 1.475 |
| 2014-11-14 | 0.640 | 1.585 |
| 2014-10-30 | 0.640 | 1.657 |
| 2014-07-24 | 0.520 | 1.365 |
| 2014-04-24 | 0.520 | 1.396 |
| 2014-01-23 | 0.520 | 1.431 |
| 2013-10-30 | 0.520 | 1.323 |
| 2013-07-25 | 0.420 | 1.125 |
| 2013-04-25 | 0.420 | 1.295 |
| 2013-01-29 | 0.420 | 1.479 |
| 2013-01-24 | 0.420 | 1.507 |
| 2012-11-01 | 0.420 | 1.598 |
| 2012-08-02 | 0.340 | 1.412 |
| 2012-07-26 | 0.340 | 1.468 |
| 2012-04-26 | 0.340 | 1.267 |
| 2012-01-26 | 0.340 | 1.296 |
| 2011-11-03 | 0.340 | 1.524 |
| 2011-07-28 | 0.260 | 1.337 |
| 2011-04-27 | 0.260 | 1.392 |
| 2011-01-26 | 0.260 | 1.503 |
| 2010-11-04 | 0.260 | 1.628 |
| 2010-07-21 | 0.260 | 2.027 |
| 2010-03-24 | 0.200 | 1.550 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Starbucks has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Starbucks only paid a dividend in the past 9 years.
Income/ dividend checks
We assess Starbucks's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Starbucks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Starbucks has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
SBUX Management
CEO
| COMPENSATION | $13,382,480 |
| AGE | 57 |
| TENURE AS CEO | 1.9 years |
CEO Bio
Mr. Kevin R. Johnson has been the Chief Executive Officer of Starbucks Corp since April 3, 2017 and has been its President since March 1, 2015. He has been a Director of Starbucks Corp since March 2009 and served as its chief operating officer from March 2015 to April 2017. Mr. Johnson was named President, Platforms and Services Division from January 2007 to September 3, 2008 for Microsoft Corporation. As president of the Platforms & Services Division of Microsoft, he led an organization of over 14,000 employees responsible for product development, marketing and strategy for the Windows and Online Services businesses. With Bill Gates, Steve Ballmer and seven other senior executives, Johnson also served on the Senior Leadership Team that sets overall strategy and direction for Microsoft. He held a number of leadership positions in sales and marketing at Microsoft, where he worked globally with consumer, small/medium business and enterprise customers. He served as vice president of Microsoft's worldwide sales, marketing and services. He joined Microsoft in 1992, serving in a variety of roles across sales, marketing and services during his career at the company. Before joining Microsoft, Mr. Johnson worked in IBM's systems integration and consulting business unit from 1986 to 1992. He started his career in 1981 as a software developer in the petroleum and financial services industries. He is a founding member of the board of directors of NPower, a nonprofit organization whose mission is to help other nonprofits use technology to expand the reach and impact of their work. He is also a member of the Western Region Board of Advisors of Catalyst, a non-profit organization dedicated to women's career advancement. He holds a bachelor's degree in business administration from New Mexico State University. r. Johnson served as Chief Executive Officer of Juniper Networks, Inc., a leading provider of high-performance networking products and services, from September 2008 to December 2013. He also served on the Board of Directors of Juniper Networks from September 2008 to February 2014. Mr. Johnson worked in International Business Machine Corp.’s systems integration and consulting business. Mr. Johnson has extensive experience in the technology industry.
CEO Compensation
- Kevin's compensation has been consistent with company performance over the past year.
- Kevin's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Starbucks management team in years:
- The average tenure for the Starbucks management team is less than 2 years, this suggests a new team.
Management Team
Kevin Johnson
CEO, President & Director
$13M
57
1.9 yrs
Howard Schultz
Founder & Chairman Emeritus
$30M
65
34.2 yrs
Roz Brewer
COO, Group President of Americas & Director
$9M
56
1.4 yrs
Cliff Burrows
Group President of Siren Retail
$6M
59
2.5 yrs
John Culver
Group President of International
$6M
58
1.4 yrs
Scott Maw
Senior Consultant
$6M
51
0.3 yrs
Pat Grismer
CFO & Executive VP
56
0.3 yrs
Jill Walker
Senior VP of Corporate Financial Services & Chief Accounting Officer
46
Gerri Martin-Flickinger
Executive VP & CTO
54
3.3 yrs
Rachel Gonzalez
Executive VP
48
0.9 yrs
Board of Directors Tenure
Average tenure and age of the Starbucks board of directors in years:
- The average tenure for the Starbucks board of directors is less than 3 years, this suggests a new board.
Board of Directors
Mike Ullman
Chairman of the Board
$149K
71
0.8 yrs
Kevin Johnson
CEO, President & Director
$13M
57
10 yrs
Mellody Hobson
Vice Chairman of the Board
$255K
49
0.8 yrs
Howard Schultz
Founder & Chairman Emeritus
$30M
65
0.8 yrs
Roz Brewer
COO, Group President of Americas & Director
$9M
56
2 yrs
Mary Dillon
Independent Director
$255K
57
3.2 yrs
Jørgen Knudstorp
Independent Director
$149K
49
2 yrs
Javier Garcia Teruel Herroz
Independent Director
$149K
67
13.5 yrs
Joshua Ramo
Independent Director
$257K
49
7.8 yrs
Clara Shih
Independent Director
$205K
36
7.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 22. Aug 18 | Buy | Rosalind Brewer | Individual | 20. Aug 18 | 20. Aug 18 | 5,000 | $54.04 | $270,200 | ||
Management checks
We assess Starbucks's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Starbucks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
SBUX News
Simply Wall St News
Should Starbucks Corporation (NASDAQ:SBUX) Be Part Of Your Dividend Portfolio?
A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Starbucks Corporation (NASDAQ:SBUX) has paid a dividend to shareholders. … Let's dig deeper into whether Starbucks should have a place in your portfolio.
Simply Wall St - – Full articleStarbucks Corporation (NASDAQ:SBUX): Is Growth Priced In?
Growth expectations for Starbucks Corporation (NASDAQ:SBUX) are high, but many investors are starting to ask whether its last close at $70.15 can still be rationalized by the future potential. … According to the analysts covering the company, the following few years should bring about good growth prospects for Starbucks … Expectations from 26 analysts are
Simply Wall St - – Full articleDespite Its High P/E Ratio, Is Starbucks Corporation (NASDAQ:SBUX) Still Undervalued?
We'll look at Starbucks Corporation's (NASDAQ:SBUX) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Starbucks's P/E ratio is 30.81. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhy You Should Like Starbucks Corporation’s (NASDAQ:SBUX) ROCE
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleUnderstanding Your Return On Investment In Starbucks Corporation (NASDAQ:SBUX)
and want a simplistic look at the return on Starbucks Corporation (NASDAQ:SBUX) stock. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Starbucks’s capital returns we will look at a useful metric called return on capital employed.
Simply Wall St - – Full articleWith An ROE Of 113.88%, Has Starbucks Corporation's (NASDAQ:SBUX) Management Done Well?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … If SBUX borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface.
Simply Wall St - – Full articleWas Starbucks Corporation's (NASDAQ:SBUX) Earnings Growth Better Than The Industry's?
After reading Starbucks Corporation's (NASDAQ:SBUX) most recent earnings announcement (01 April 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … SBUX's trailing twelve-month earnings (from 01 April 2018) of US$4.39b has
Simply Wall St - – Full articleIntrinsic Calculation For Starbucks Corporation (NASDAQ:SBUX) Shows Investors Are Overpaying
by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleCan Starbucks Corporation's (NASDAQ:SBUX) ROE Continue To Surpass The Industry Average?
and want a simplistic look at the return on Starbucks Corporation (NASDAQ:SBUX) stock. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface. … Return on Equity (ROE) weighs Starbucks’s profit against the level of its shareholders’ equity.
Simply Wall St - – Full articleStarbucks Corporation (NASDAQ:SBUX): Time For A Financial Health Check
Moreover, SBUX has generated cash from operations of US$4.17B in the last twelve months, resulting in an operating cash to total debt ratio of 104.68%, indicating that SBUX’s current level of operating cash is high enough to cover debt. … Since equity is smaller than total debt levels, Starbucks is considered to have high leverage. … Next Steps: SBUX’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.
Simply Wall St - – Full articleSBUX Company Info
Description
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; 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. It offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Frappuccino, Starbucks Reserve, Princi, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks VIA brand names. As of February 27, 2019, the company operated approximately 25,000 stores. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Details
| Name: | Starbucks Corporation |
| SBUX | |
| Exchange: | NasdaqGS |
| Founded: | 1971 |
| $89,079,068,000 | |
| 1,243,600,000 | |
| Website: | http://www.starbucks.com |
| Address: |
Starbucks Corporation 2401 Utah Avenue South, Seattle, Washington, 98134, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | SBUX | Common Stock | Nasdaq Global Select | US | USD | 26. Jun 1992 | |
| DB | SRB | Common Stock | Deutsche Boerse AG | DE | EUR | 26. Jun 1992 | |
| XTRA | SRB | Common Stock | XETRA Trading Platform | DE | EUR | 26. Jun 1992 | |
| SWX | SBUX | Common Stock | SIX Swiss Exchange | CH | CHF | 26. Jun 1992 | |
| BIT | SBUX | Common Stock | Borsa Italiana | IT | EUR | 26. Jun 1992 | |
| WBAG | SBUX | Common Stock | Wiener Boerse AG | AT | EUR | 26. Jun 1992 | |
| SNSE | SBUX | Common Stock | Santiago Stock Exchange | CL | USD | 26. Jun 1992 | |
| BMV | SBUX * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 26. Jun 1992 | |
| BVL | SBUX | Common Stock | Bolsa de Valores de Lima | PE | USD | 26. Jun 1992 | |
| BOVESPA | SBUB34 | BDR EACH REP 1 COM USD0.001 | Bolsa de Valores de Sao Paulo | BR | BRL | 24. Aug 2012 |
Number of employees
Current staff
Industry
| Restaurants | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 23:46 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/03/15 |
| Last earnings filing: | 2019/01/29 |
| Last earnings reported: | 2018/12/30 |
| Last annual earnings reported: | 2018/09/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
