Market Cap
US$104.8b
Last Updated
2020/02/17 00:03 UTC
Data Sources
Company Financials +
Executive Summary
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with proven track record.
Similar Companies
Share Price & News
How has Starbucks's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SBUX has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
SBUX
2.5%
US Hospitality
1.5%
US Market
1 Year Return
26.3%
SBUX
8.1%
US Hospitality
20.1%
US Market
Return vs Industry: SBUX exceeded the US Hospitality industry which returned 8.1% over the past year.
Return vs Market: SBUX exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| SBUX | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 2.5% | 1.5% |
| 30 Day | -4.6% | -4.9% | 1.4% |
| 90 Day | 6.7% | 5.7% | 8.7% |
| 1 Year | 28.6%26.3% | 10.9%8.1% | 22.7%20.1% |
| 3 Year | 65.3%55.7% | 36.0%27.0% | 50.1%40.5% |
| 5 Year | 108.5%90.8% | 46.2%30.6% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Starbucks's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Why You Should Like Starbucks Corporation’s (NASDAQ:SBUX) ROCE3 weeks ago | Simply Wall St
Does This Valuation Of Starbucks Corporation (NASDAQ:SBUX) Imply Investors Are Overpaying?1 month ago | Simply Wall St
Who Has Been Selling Starbucks Corporation (NASDAQ:SBUX) Shares?Valuation
Is Starbucks undervalued compared to its fair value and its price relative to the market?
28.91x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SBUX ($89.28) is trading above our estimate of fair value ($74.77)
Significantly Below Fair Value: SBUX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SBUX is poor value based on its PE Ratio (28.9x) compared to the Hospitality industry average (24.2x).
PE vs Market: SBUX is poor value based on its PE Ratio (28.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: SBUX is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: SBUX has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.
Next Steps
Future Growth
How is Starbucks forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
9.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SBUX's forecast earnings growth (9.2% per year) is above the savings rate (1.7%).
Earnings vs Market: SBUX's earnings (9.2% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: SBUX's earnings are forecast to grow, but not significantly.
Revenue vs Market: SBUX's revenue (7.5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: SBUX's revenue (7.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SBUX's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Starbucks performed over the past 5 years?
9.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SBUX has a high level of non-cash earnings.
Growing Profit Margin: SBUX's current net profit margins (13.8%) are higher than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: SBUX's earnings have grown by 9.5% per year over the past 5 years.
Accelerating Growth: SBUX's earnings growth over the past year (22.3%) exceeds its 5-year average (9.5% per year).
Earnings vs Industry: SBUX earnings growth over the past year (22.3%) exceeded the Hospitality industry -9.8%.
Return on Equity
High ROE: SBUX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Starbucks's financial position?
Financial Position Analysis
Short Term Liabilities: SBUX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: SBUX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: SBUX has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: SBUX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: SBUX's debt is well covered by operating cash flow (38.7%).
Interest Coverage: SBUX's interest payments on its debt are well covered by EBIT (15.3x coverage).
Balance Sheet
Inventory Level: SBUX has a high level of physical assets or inventory.
Debt Coverage by Assets: SBUX has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is Starbucks's current dividend yield, its reliability and sustainability?
1.84%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SBUX's dividend (1.84%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: SBUX's dividend (1.84%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: SBUX's dividends per share have been stable in the past 10 years.
Growing Dividend: SBUX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (49.9%), SBUX's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SBUX's dividends in 3 years are forecast to be covered by earnings (53.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Kevin Johnson (58yo)
2.8yrs
Tenure
US$19,241,950
Compensation
Mr. Kevin R. Johnson has been the Chief Executive Officer of Starbucks Corp since April 3, 2017 and has been its President since March 1, 2015. He has been a Director of Starbucks Corp since March 2009 and ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD19.24M) is above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 2.8yrs | US$19.24m | 0.015% $15.3m | |
| CFO & Executive VP | 1.3yrs | US$11.21m | 0.010% $10.8m | |
| COO, Group President of Americas & Director | 2.9yrs | US$8.02m | 0.0035% $3.7m | |
| Group President of International | 13.1yrs | US$6.74m | 0.022% $23.4m | |
| Executive VP & Chief Partner Officer | 2.5yrs | US$4.21m | 0.0065% $6.8m | |
| Founder & Chairman Emeritus | 1.7yrs | US$30.18m | 3.05% $3.2b | |
| Senior VP of Corporate Financial Services & Chief Accounting Officer | 0.9yrs | no data | 0.0032% $3.4m | |
| Executive VP & CTO | 4.3yrs | no data | no data | |
| Executive VP | 1.8yrs | no data | 0.00087% $911.7k | |
| Senior VP | 1.1yrs | no data | no data |
2.4yrs
Average Tenure
57yo
Average Age
Experienced Management: SBUX's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 2.8yrs | US$19.24m | 0.015% $15.3m | |
| COO, Group President of Americas & Director | 2.9yrs | US$8.02m | 0.0035% $3.7m | |
| Founder & Chairman Emeritus | 1.7yrs | US$30.18m | 3.05% $3.2b | |
| Chairman & CEO of Starbucks China | 0.7yrs | no data | no data | |
| Independent Chairman of the Board | 1.7yrs | US$452.82k | 0.0012% $1.2m | |
| Independent Director | 14.4yrs | US$267.80k | 0.0086% $9.0m | |
| Independent Vice Chairman of the Board | 1.7yrs | US$369.97k | 0.048% $50.3m | |
| Independent Director | 4.1yrs | US$287.86k | no data | |
| Independent Director | 2.9yrs | US$287.86k | 0.0015% $1.6m | |
| Independent Director | 8.8yrs | US$269.97k | 0.0011% $1.1m |
2.9yrs
Average Tenure
58yo
Average Age
Experienced Board: SBUX's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Starbucks Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Starbucks Corporation
- Ticker: SBUX
- Exchange: NasdaqGS
- Founded: 1971
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$104.788b
- Shares outstanding: 1.17b
- Website: https://www.starbucks.com
Number of Employees
Location
- Starbucks Corporation
- 2401 Utah Avenue South
- Seattle
- Washington
- 98134
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SBUX | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 1992 |
| SRB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1992 |
| SBUX * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1992 |
| SRB | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jun 1992 |
| SBUX | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jun 1992 |
| SBUX | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jun 1992 |
| SBUX | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | Jun 1992 |
| SBUX | BIT (Borsa Italiana) | Yes | Common Stock | IT | EUR | Jun 1992 |
| SBUX | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jun 1992 |
| US_SBUX | KAS (Kazakhstan Stock Exchange) | Yes | Common Stock | KZ | KZT | Jun 1992 |
| SBUX | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REPR 1 ORD COM USD0.001 | AR | ARS | May 2004 | |
| SBUB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REP 1 COM USD0.001 | BR | BRL | Aug 2012 |
Biography
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in three segments: Americas; International; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, and iced tea; 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, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brand names. As of October 30, 2019, the company operated approximately 31,000 stores. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:03 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/29 |
| Annual Earnings | 2019/09/29 |
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.