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Starbucks

Nasdaq:SBUX
Snowflake Description

Solid track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SBUX
Nasdaq
$74B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The last earnings update was 306 days ago. More info.


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SBUX Share Price and Events
Price Volatility
SBUX
Industry
5yr Volatility vs Market
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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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Starbucks.

NasdaqGS:SBUX Discounted Cash Flow Data Sources
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 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SBUX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.87 (1 + (1- 21%) (9.15%))
0.933
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.933 * 7.05%)
9.52%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SBUX DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 2,969.68 3,589.50 4,228.00 4,673.00 5,146.19
Source Analyst x5 Analyst x2 Analyst x1 Analyst x1 Est @ 10.13%
Present Value
Discounted (@ 9.52%)
2,711.43 2,992.34 3,218.10 3,247.49 3,265.33
Present value of next 5 years cash flows $15,434.69
NasdaqGS:SBUX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $5,146.19 × (1 + 2.95%) ÷ (9.52% – 2.95%)
$80,582.47
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $80,582.47 ÷ (1 + 9.52%)5
$51,130.66
NasdaqGS:SBUX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $15,434.69 + $51,130.66
$66,565.34
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $66,565.34 / 1,349.10
$49.34
NasdaqGS:SBUX Discount to Share Price
Calculation Result
Value per share (USD) From above. $49.34
Current discount Discount to share price of $55.43
= -1 x ($55.43 - $49.34) / $49.34
-12.3%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NasdaqGS:SBUX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-07-01) in USD $3.23
NasdaqGS:SBUX Share Price ** NasdaqGS (2018-09-19) in USD $55.43
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 19.89x
United States of America Market PE Ratio Median Figure of 3,050 Publicly-Listed Companies 20.12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Starbucks.

NasdaqGS:SBUX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SBUX Share Price ÷ EPS (both in USD)

= 55.43 ÷ 3.23

17.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Starbucks is good value based on earnings compared to the US Hospitality industry average.
  • Starbucks is good value 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?
Raw Data
NasdaqGS:SBUX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts
-2.6%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 57 Publicly-Listed Hospitality Companies 1.15x
United States of America Market PEG Ratio Median Figure of 2,048 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

NasdaqGS:SBUX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.15x ÷ -2.6%

-6.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Starbucks earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Starbucks's assets?
Raw Data
NasdaqGS:SBUX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-07-01) in USD $2.92
NasdaqGS:SBUX Share Price * NasdaqGS (2018-09-19) in USD $55.43
United States of America Hospitality Industry PB Ratio Median Figure of 116 Publicly-Listed Hospitality Companies 2.65x
United States of America Market PB Ratio Median Figure of 5,247 Publicly-Listed Companies 2.01x
NasdaqGS:SBUX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SBUX Share Price ÷ Book Value per Share (both in USD)

= 55.43 ÷ 2.92

18.98x

* Primary Listing of Starbucks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Starbucks is overvalued based on assets compared to the US Hospitality industry average.
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Value checks
We assess Starbucks's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Starbucks has a total score of 2/6, 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!
Annual Growth Rate
-2.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Starbucks expected to grow at an attractive rate?
  • Starbucks's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3%.
Growth vs Market Checks
  • Starbucks's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Starbucks's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SBUX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SBUX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts -2.6%
NasdaqGS:SBUX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts 6.8%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 10.9%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 16.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.7%

*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
Raw Data
NasdaqGS:SBUX Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SBUX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 32,466 6,173 4,197 1
2021-09-30 30,455 5,728 3,861 3
2020-09-30 28,008 5,217 3,598 12
2019-09-30 26,148 4,959 3,463 26
2018-09-30 24,633 4,799 4,559 11
NasdaqGS:SBUX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-07-01 24,114 4,520 4,551
2018-04-01 23,465 4,471 4,390
2017-12-31 22,728 4,479 4,383
2017-10-01 22,387 4,174 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 4,575 2,818
2016-06-26 20,520 4,237 2,669
2016-03-27 20,163 3,934 2,542
2015-12-27 19,733 3,960 2,462
2015-09-27 19,163 3,749 2,757

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Starbucks's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Starbucks's revenue is expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SBUX 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.

NasdaqGS:SBUX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 4.18 4.18 4.18 1.00
2021-09-30 3.44 3.66 3.27 3.00
2020-09-30 3.05 3.16 2.98 6.00
2019-09-30 2.63 2.69 2.56 13.00
2018-09-30 3.25 3.26 3.24 3.00
NasdaqGS:SBUX Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-12-27 1.65
2015-09-27 1.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Starbucks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Starbucks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Starbucks has a total score of 0/6, 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?

  • Starbucks's last earnings update was 306 days ago.
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
Below we compare Starbucks's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Starbucks has delivered over 20% year on year earnings growth in the past 5 years.
  • Starbucks's 1-year earnings growth exceeds its 5-year average (57.1% vs 31.3%)
  • Starbucks's earnings growth has exceeded the US Hospitality industry average in the past year (57.1% vs 34%).
Earnings and Revenue History
Starbucks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Starbucks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SBUX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-07-01 24,114.20 4,551.40 1,635.20
2018-04-01 23,465.30 4,390.10 1,492.20
2017-12-31 22,727.60 4,383.10 1,413.50
2017-10-01 22,386.80 2,884.70 1,393.30
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 1,360.60
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
2012-01-01 12,185.50 1,281.20 3,457.50
2011-10-02 11,700.40 1,245.70 851.90

*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.
  • Starbucks made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Starbucks used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Starbucks's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Starbucks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Starbucks has a total score of 5/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Starbucks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
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.
Raw Data

All data from Starbucks Company Filings, last reported 2 months ago.

NasdaqGS:SBUX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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 3,987.60 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
2012-01-01 4,775.30 549.50 2,273.20
2011-10-02 4,387.30 549.50 2,050.70
  • Starbucks's level of debt (170.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (9.9% vs 170.1% today).
  • Debt is well covered by operating cash flow (66.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 407.5x coverage).
X
Financial health checks
We assess Starbucks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Starbucks has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.6%
Current annual income from Starbucks dividends. Estimated to be 2.64% next year.
If you bought $2,000 of Starbucks shares you are expected to receive $52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Starbucks's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.26%).
  • Starbucks's dividend is below the markets top 25% of dividend payers in United States of America (3.25%).
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.
Raw Data
NasdaqGS:SBUX Annualized Past and Future Dividends
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 45 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1974 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.7%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.3%
United States of America Top 25% Dividend Yield 75th Percentile 3.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SBUX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 2.04 1.00
2021-09-30 1.80 1.00
2020-09-30 1.60 7.00
2019-09-30 1.47 12.00
2018-09-30 1.29 11.00
NasdaqGS:SBUX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-06-19 1.440 2.766
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 8 years.
Current Payout to shareholders
What portion of Starbucks's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Starbucks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Starbucks's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Johnson, image provided by Google.
Kevin Johnson
COMPENSATION $11,480,364
AGE 57
TENURE AS CEO 1.4 years
CEO Bio

Mr. Kevin R. Johnson has been the Chief Executive Officer of Starbucks Corp since April 3, 2017 and has been it 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 olds 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 through 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 compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Starbucks management team in years:

1.7
Average Tenure
58
Average Age
  • The average tenure for the Starbucks management team is less than 2 years, this suggests a new team.
Management Team

Kevin Johnson

TITLE
CEO, President & Director
COMPENSATION
$11M
AGE
57
TENURE
1.4 yrs

Howard Schultz

TITLE
Founder & Chairman Emeritus
COMPENSATION
$18M
AGE
65
TENURE
33.7 yrs

Scott Maw

TITLE
Executive VP
COMPENSATION
$6M
AGE
51
TENURE
4.6 yrs

Roz Brewer

TITLE
COO, Group President of Americas & Director
COMPENSATION
$137K
AGE
56
TENURE
0.9 yrs

Lucy Helm

TITLE
Chief Partner Officer
COMPENSATION
$3M
AGE
61
TENURE
1.1 yrs

Paul Mutty

TITLE
Senior VP
COMPENSATION
$3M
AGE
59

Cliff Burrows

TITLE
Group President of Siren Retail
COMPENSATION
$5M
AGE
59
TENURE
2 yrs

John Culver

TITLE
Group President of International
COMPENSATION
$5M
AGE
58
TENURE
0.9 yrs

Gerri Martin-Flickinger

TITLE
Executive VP & CTO
AGE
55
TENURE
2.8 yrs

Tom Shaw

TITLE
Vice President of Investor Relations
Board of Directors Tenure

Average tenure and age of the Starbucks board of directors in years:

2.1
Average Tenure
56.5
Average Age
  • The average tenure for the Starbucks board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mike Ullman

TITLE
Chairman of the Board & Lead Independent Director
COMPENSATION
$168K
AGE
71
TENURE
0.3 yrs

Kevin Johnson

TITLE
CEO, President & Director
COMPENSATION
$11M
AGE
57
TENURE
9.5 yrs

Mellody Hobson

TITLE
Vice Chairman of the Board
COMPENSATION
$255K
AGE
49
TENURE
0.3 yrs

Howard Schultz

TITLE
Founder & Chairman Emeritus
COMPENSATION
$18M
AGE
65
TENURE
0.3 yrs

Roz Brewer

TITLE
COO, Group President of Americas & Director
COMPENSATION
$137K
AGE
56
TENURE
1.5 yrs

Javier Teruel

TITLE
Independent Director
COMPENSATION
$168K
AGE
67
TENURE
13 yrs

Joshua Ramo

TITLE
Independent Director
COMPENSATION
$258K
AGE
49
TENURE
7.3 yrs

Clara Shih

TITLE
Independent Director
COMPENSATION
$258K
AGE
36
TENURE
6.8 yrs

Mary Dillon

TITLE
Independent Director
COMPENSATION
$255K
AGE
57
TENURE
2.7 yrs

Jørgen Knudstorp

TITLE
Director
COMPENSATION
$88K
AGE
49
TENURE
1.5 yrs
Recent Insider Trading
  • More shares have been bought than sold by Starbucks insiders in the past 3 months, but not in substantial volumes.
Who owns this company?
X
Management checks
We assess Starbucks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

External News
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Simply Wall St News

Understanding 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 -

With 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 -

Was 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 -

Intrinsic 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 -

Can 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 -

Starbucks 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 -

Is Starbucks Corporation (NASDAQ:SBUX) Undervalued?

This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … However, with a negative profit growth of -2.77% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Starbucks.

Simply Wall St -

Is Starbucks Corporation (NASDAQ:SBUX) Expensive For A Reason? A Look At The Intrinsic Value

5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $2,894.11 $3,209.20 $3,544.00 $4,546.00 $5,088.00 Source Analyst x7 Analyst x6 Analyst x2 Analyst x1 Analyst x1 Present Value Discounted @ 9.03% $2,654.52 $2,699.83 $2,734.66 $3,217.43 $3,302.91 Present Value of 5-year Cash Flow (PVCF)= $14,609 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $5,088 × (1 + 2.5%) ÷ (9% – 2.5%) = $79,525 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $79,525 / ( 1 + 9%)5 = $51,625 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $66,234. … NasdaqGS:SBUX Intrinsic Value Apr 26th 18 Important assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Who Are The Top Investors In Starbucks Corporation (NASDAQ:SBUX)?

See our latest analysis for Starbucks NasdaqGS:SBUX Ownership_summary Mar 30th 18 Institutional Ownership SBUX's 75.89% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … However, an ownership of this size may be relatively insignificant, meaning that these shareholders may not have the potential to influence SBUX's business strategy.

Simply Wall St -

Is Starbucks Corporation (NASDAQ:SBUX) A Smart Pick For Income Investors?

View our latest analysis for Starbucks How I analyze a dividend stock When researching a dividend stock, I always follow the following screening criteria: Does it pay an annual yield higher than 75% of dividend payers? … The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward. … Compared to its peers, Starbucks has a yield of 2.05%, which is on the low-side for Hospitality stocks.Next Steps: Taking all the above into account, Starbucks is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative.

Simply Wall St -

SBUX Company Info

Map
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 coffee and tea products, 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 Doubleshot, Starbucks Refreshers, premium Tazo, and Starbucks VIA brand names. As of July 26, 2018, the company operated 28,720 stores. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Details
Name: Starbucks Corporation
SBUX
Exchange: NasdaqGS
Founded: 1971
$74,294,937,000
1,349,100,000
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
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
Staff numbers
277,000
Starbucks employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/09/19 21:07
End of day share price update: 2018/09/19 00:00
Last estimates confirmation: 2018/09/19
Last earnings update: 2018/07/01
Last annual earnings update: 2017/10/01


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.