The Bull Case For Starbucks (SBUX) Could Change Following Dividend Affirmation Announcement – Learn Why

• Starbucks Corporation previously announced that its Board of Directors approved a quarterly cash dividend of US$0.61 per share, payable on August 29, 2025, to shareholders of record as of August 15, 2025.
• This dividend affirmation sends a message of financial stability and commitment to shareholder returns, even amid ongoing operational and industry shifts.
• With Starbucks affirming its regular dividend, we'll consider how this focus on shareholder rewards affects its broader investment story.

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Starbucks Investment Narrative Recap

To hold Starbucks stock, I need to believe in its potential to deliver consistent long-term growth through international expansion, customer engagement improvements, and operational efficiency. The newly affirmed quarterly dividend underscores management’s commitment to rewarding shareholders, but does not materially affect the key short-term catalyst, the need to successfully execute the “Back to Starbucks” strategy to counter recent margin pressures. The biggest near-term risk remains whether the company can offset rising labor costs and declining comparable store sales in a shifting consumer environment.

Of the recent announcements, Starbucks’ approval of a new US$3.0 billion credit agreement in June stands out as most relevant. This bolstered financial flexibility complements the company’s ongoing dividend payments, providing support for the Back to Starbucks operational turnaround in the face of higher operating costs and evolving global strategies.

By contrast, the risk of continued margin pressure from rising labor expenses is something investors should also be aware of, especially since...

Read the full narrative on Starbucks (it's free!)

Starbucks' outlook projects $44.7 billion in revenue and $4.6 billion in earnings by 2028. This assumes a 7.1% annual revenue growth rate and a $1.5 billion increase in earnings from the current $3.1 billion.

Uncover how Starbucks' forecasts yield a $94.42 fair value, in line with its current price.

Exploring Other Perspectives

Eighteen fair value estimates from the Simply Wall St Community range from US$67.08 to US$110 per share. With margin pressure from higher labor costs a current concern, you can explore these varied perspectives to compare which outlooks align with your view on Starbucks’ future performance.

Explore 18 other fair value estimates on Starbucks - why the stock might be worth 29% less than the current price!

Build Your Own Starbucks Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Starbucks research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free Starbucks research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Starbucks' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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