Consumer Cyclical · NYSE/NASDAQ: SBUX

STARBUCKS CORP

Restaurants
Market Cap $115.78B
Verdict: Average

Quality Scores

Multi-Bagger
58/100
Compounder Quality
64/100
Management Credibility
60/100
Governance
68/100
Cash Flow Quality
85/100

AI Summary

Starbucks Corp (SBUX) exhibits the profile of a mature global giant struggling with saturated markets, rising labor costs, and a precarious capital structure characterized by negative equity. While revenue has grown from $29B to $37B over the last five years, net income has become increasingly volatile, dropping significantly in FY2025. The company’s financial engineering, specifically aggressive share buybacks, has resulted in a technical insolvency on the balance sheet with over $8B in negative equity. Despite these accounting optics, the brand remains a dominant global force with robust…

Top Opportunities

  • Consistent positive Cash Flow from Operations
  • Global brand dominance and pricing power
  • Massive scale with over 36B in annual revenue

Top Risks

  • Negative total stockholders equity for multiple years
  • Long-term debt tripled since 2016
  • Sharp decline in net income reported for 2025

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