NASDAQ · Consumer Cyclical

Starbucks Corporation

SBUX · Restaurants

$104.88

▼ -1.02 (-0.96%)

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Mr. Market is currently offering Starbucks Corporation at $104.88.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability D

Gross Profit Margin 22.8%

Operating Margin 9.6%

Net Income Margin 5.0%

Fin. Health F

Years to Pay Off Debt 14.3 yrs

Working Capital vs Long-Term Debt -$17.4B

Working Capital -$2.8B

Valuation A

Price-to-Book -14.76x

Cash Flow C

Free Cash Flow $2.4B

CapEx % of Net Income 124.2%

Owner Earnings $5.9B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $119.5B

Enterprise Value $143.4B

P/E (TTM) 80.06

Dividend Yield 2.33%

Exchange NASDAQ

Key Margins

Gross Profit 22.8%

Operating Margin 9.6%

Net Margin 5.0%

Company Info

Sector Consumer Cyclical

Industry Restaurants

Employees 381000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Starbucks Corporation at $104.88.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Starbucks Corporation

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; 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. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	22.8% ▼	26.8%	27.4%	26.0%	N/A
Operating Margin %	9.6% ▼	14.1%	15.3%	13.7%	N/A
Net Income %	5.0% ▼	10.4%	11.5%	10.2%	N/A
Diluted EPS	1.63 ▼	3.31	3.58	2.83	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$32.0B	$31.3B	$29.4B	$28.0B	N/A
Total Debt	$26.6B ↑	$25.8B	$24.6B	$23.8B	N/A
Working Capital	-$2.8B ▼	-$2.2B	-$2.0B	-$2.1B	N/A
Years to Pay Debt	14.34	6.86	5.96	7.25	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$2.4B ▼	$3.3B	$3.7B	$2.6B	N/A
Owner Earnings	$5.9B	$8.1B	$7.9B	$6.7B	N/A
CapEx % of Net Income	124.2%	73.9%	56.6%	56.1%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-231,028	0	16,402	-10,304
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	5,713,400	7,124,000	7,332,800	6,290,200
Total Unusual Items	-892,000	0	69,500	-46,000
Total Unusual Items Excluding Goodwill	-892,000	0	69,500	-46,000
Net Income From Continuing Operation Net Minority Interest	1,856,400	3,760,900	4,124,500	3,281,600
Reconciled Depreciation	1,771,500	1,592,400	1,450,300	1,529,400
Reconciled Cost Of Revenue	28,630,300	26,387,300	26,041,700	23,797,700
EBITDA	4,821,400	7,124,000	7,402,300	6,244,200
EBIT	3,049,900	5,531,600	5,952,000	4,714,800
Net Interest Income	-429,300	-439,200	-468,900	-385,900
Interest Expense	542,600	562,000	550,100	482,900
Interest Income	113,300	122,800	81,200	97,000
Normalized Income	2,517,372	3,760,900	4,071,402	3,317,296
Net Income From Continuing And Discontinued Operation	1,856,400	3,760,900	4,124,500	3,281,600
Total Expenses	33,603,600	31,068,600	30,472,700	27,820,600
Rent Expense Supplemental	3,318,600	3,050,600	2,871,000	2,674,100
Total Operating Income As Reported	2,936,600	5,408,800	5,870,800	4,617,800
Diluted Average Shares	1,139,800	1,137,300	1,151,300	1,158,500
Basic Average Shares	1,136,900	1,133,500	1,142,600	1,147,900
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,856,400	3,760,900	4,124,500	3,281,600
Net Income Common Stockholders	1,856,400	3,760,900	4,124,500	3,281,600
Net Income	1,856,400	3,760,900	4,124,500	3,281,600
Minority Interests	-300	-1,400	-200	-1,800
Net Income Including Noncontrolling Interests	1,856,700	3,762,300	4,124,700	3,283,400
Net Income Continuous Operations	1,856,700	3,762,300	4,124,700	3,283,400
Tax Provision	650,600	1,207,300	1,277,200	948,500
Pretax Income	2,507,300	4,969,600	5,401,900	4,231,900
Other Income Expense	-644,200	301,200	367,900	188,100
Special Income Charges	-892,000	0	69,500	-46,000
Gain On Sale Of Ppe	0	0	91,300	0
Gain On Sale Of Business			0	0	864,500
Restructuring And Mergern Acquisition	892,000	0	21,800	46,000
Earnings From Equity Interest	247,800	301,200	298,400	234,100
Net Non Operating Interest Income Expense	-429,300	-439,200	-468,900	-385,900
Interest Expense Non Operating	542,600	562,000	550,100	482,900
Interest Income Non Operating	113,300	122,800	81,200	97,000
Operating Income	3,580,800	5,107,600	5,502,900	4,429,700
Operating Expense	4,886,500	4,601,500	4,343,300	3,941,400
Other Operating Expenses	584,600	565,600	539,400	461,500
Depreciation Amortization Depletion Income Statement	1,684,700	1,512,600	1,362,600	1,447,900
Depreciation And Amortization In Income Statement	1,684,700	1,512,600	1,362,600	1,447,900
Selling General And Administration	2,617,200	2,523,300	2,441,300	2,032,000
General And Administrative Expense	2,617,200	2,523,300	2,441,300	2,032,000
Other Gand A	2,617,200	2,523,300	2,441,300	2,032,000
Gross Profit	8,467,300	9,709,100	9,846,200	8,371,100
Cost Of Revenue	28,717,100	26,467,100	26,129,400	23,879,200
Total Revenue	37,184,400	36,176,200	35,975,600	32,250,300
Operating Revenue	35,095,200	34,271,000	33,975,000	30,231,600

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	1,136,900	1,133,500	1,142,600	1,147,900
Share Issued	1,136,900	1,133,500	1,142,600	1,147,900
Net Debt	12,855,000	12,282,200	11,848,200	12,225,500
Total Debt	26,611,500	25,803,100	24,599,800	23,804,800
Tangible Book Value	-11,632,300	-10,865,500	-11,333,600	-12,146,000
Invested Capital	7,978,200	8,119,500	7,404,900	6,337,300
Working Capital	-2,828,100	-2,222,600	-2,041,900	-2,133,100
Net Tangible Assets	-11,632,300	-10,865,500	-11,333,600	-12,146,000
Capital Lease Obligations	10,536,700	10,234,700	9,200,100	8,760,900
Common Stock Equity	-8,096,600	-7,448,900	-7,994,800	-8,706,600
Total Capitalization	6,479,300	6,870,600	5,552,800	4,413,300
Total Equity Gross Minority Interest	-8,089,200	-7,441,600	-7,987,800	-8,698,700
Minority Interest	7,400	7,300	7,000	7,900
Stockholders Equity	-8,096,600	-7,448,900	-7,994,800	-8,706,600
Gains Losses Not Affecting Retained Earnings	-459,300	-428,800	-778,200	-463,200
Other Equity Adjustments	-459,300	-428,800	-778,200	-463,200
Retained Earnings	-8,272,500	-7,343,800	-7,255,800	-8,449,800
Additional Paid In Capital	634,100	322,600	38,100	205,300
Capital Stock	1,100	1,100	1,100	1,100
Common Stock	1,100	1,100	1,100	1,100
Total Liabilities Net Minority Interest	40,108,900	38,780,900	37,433,300	36,677,100
Total Non Current Liabilities Net Minority Interest	29,898,500	29,710,900	28,088,000	27,525,300
Other Non Current Liabilities	577,800	656,200	513,800	610,500
Non Current Deferred Liabilities	5,772,600	5,963,600	6,101,800	6,279,700
Non Current Deferred Revenue	5,772,600	5,963,600	6,101,800	6,279,700
Long Term Debt And Capital Lease Obligation	23,548,100	23,091,100	21,472,400	20,635,100
Long Term Capital Lease Obligation	8,972,200	8,771,600	7,924,800	7,515,200
Long Term Debt	14,575,900	14,319,500	13,547,600	13,119,900
Current Liabilities	10,210,400	9,070,000	9,345,300	9,151,800
Current Deferred Liabilities	1,840,600	1,781,200	1,700,200	1,641,900
Current Deferred Revenue	1,840,600	1,781,200	1,700,200	1,641,900
Current Debt And Capital Lease Obligation	3,063,400	2,712,000	3,127,400	3,169,700
Current Capital Lease Obligation	1,564,500	1,463,100	1,275,300	1,245,700
Current Debt	1,498,900	1,248,900	1,852,100	1,924,000
Other Current Borrowings	1,498,900	1,248,900	1,852,100	1,924,000
Current Provisions	282,300	244,300	233,500	232,300
Payables And Accrued Expenses	5,024,100	4,332,500	4,284,200	4,107,900
Current Accrued Expenses	2,080,400	1,711,100	1,686,700	1,724,400
Payables	2,943,700	2,621,400	2,597,500	2,383,500
Dividends Payable	704,800	691,200	651,200	608,300
Total Tax Payable	386,100	334,700	402,000	333,800
Income Tax Payable	150,300	123,500	189,300	139,200
Accounts Payable	1,852,800	1,595,500	1,544,300	1,441,400
Total Assets	32,019,700	31,339,300	29,445,500	27,978,400
Total Non Current Assets	24,637,400	24,491,900	22,142,100	20,959,700
Other Non Current Assets	752,500	617,000	546,500	554,200
Non Current Deferred Assets	1,826,900	1,766,700	1,769,800	1,799,700
Non Current Deferred Taxes Assets	1,826,900	1,766,700	1,769,800	1,799,700
Investments And Advances	713,100	739,900	687,300	590,300
Investmentin Financial Assets	246,900	276,000	247,400	279,100
Available For Sale Securities	246,900	276,000	247,400	279,100
Long Term Equity Investment	466,200	463,900	439,900	311,200
Investmentsin Joint Venturesat Cost	418,900	424,100	415,700	283,100
Investments In Other Ventures Under Equity Method	47,300	39,800	24,200	28,100
Goodwill And Other Intangible Assets	3,535,700	3,416,600	3,338,800	3,439,400
Other Intangible Assets	166,800	100,900	120,500	155,900
Goodwill	3,368,900	3,315,700	3,218,300	3,283,500
Net PPE	17,809,200	17,951,700	15,799,700	14,576,100
Accumulated Depreciation	-11,349,200	-10,775,500	-9,923,100	-9,049,300
Gross PPE	29,158,400	28,727,200	25,722,800	23,625,400
Leases	11,762,400	11,453,900	10,133,700	9,066,800
Construction In Progress	334,300	750,900	607,500	558,700
Other Properties	14,261,500	13,955,500	12,604,500	11,872,300
Machinery Furniture Equipment	2,071,600	1,825,200	1,664,500	1,526,100
Buildings And Improvements	673,700	684,800	666,500	555,400
Land And Improvements	54,900	56,900	46,100	46,100
Current Assets	7,382,300	6,847,400	7,303,400	7,018,700
Other Current Assets	452,200	313,100	359,900	483,700
Prepaid Assets				386,600	401,500
Inventory	2,185,600	1,777,300	1,806,400	2,176,600
Finished Goods	741,700	636,500	644,900	741,200
Raw Materials	1,443,900	1,140,800	1,161,500	1,435,400
Receivables	1,277,500	1,213,800	1,184,100	1,175,500
Other Receivables				69,400	172,400
Taxes Receivable				27,700	20,700
Accounts Receivable	1,277,500	1,213,800	1,184,100	1,175,500
Allowance For Doubtful Accounts Receivable	-24,000	-21,200	-23,800	-27,200
Gross Accounts Receivable	1,301,500	1,235,000	1,207,900	1,202,700
Cash Cash Equivalents And Short Term Investments	3,467,000	3,543,200	3,953,000	3,182,900
Other Short Term Investments	247,200	257,000	401,500	364,500
Cash And Cash Equivalents	3,219,800	3,286,200	3,551,500	2,818,400

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	2,442,000	3,318,100	3,675,100	2,556,000
Repurchase Of Capital Stock	0	-1,266,700	-984,400	-4,013,000
Repayment Of Debt	-1,257,800	-1,982,600	-1,253,800	-1,036,600
Issuance Of Debt	1,750,900	2,119,100	1,612,400	1,709,700
Issuance Of Capital Stock	77,000	108,000	167,400	101,600
Capital Expenditure	-2,305,500	-2,777,500	-2,333,600	-1,841,300
Interest Paid Supplemental Data	588,300	570,700	524,300	474,700
Income Tax Paid Supplemental Data	715,600	1,373,300	1,294,200	1,157,600
End Cash Position	3,219,800	3,286,200	3,551,500	2,818,400
Beginning Cash Position	3,286,200	3,551,500	2,818,400	6,455,700
Effect Of Exchange Rate Changes	-30,500	56,500	-14,200	-250,300
Changes In Cash	-35,900	-321,800	747,300	-3,387,000
Financing Cash Flow	-2,298,000	-3,718,200	-2,990,600	-5,638,000
Cash Flow From Continuing Financing Activities	-2,298,000	-3,718,200	-2,990,600	-5,638,000
Net Other Financing Charges	-96,700	-111,000	-100,400	-136,400
Cash Dividends Paid	-2,771,400	-2,585,000	-2,431,800	-2,263,300
Common Stock Dividend Paid	-2,771,400	-2,585,000	-2,431,800	-2,263,300
Net Common Stock Issuance	77,000	-1,158,700	-817,000	-3,911,400
Common Stock Payments	0	-1,266,700	-984,400	-4,013,000
Common Stock Issuance	77,000	108,000	167,400	101,600
Net Issuance Payments Of Debt	493,100	136,500	358,600	673,100
Net Short Term Debt Issuance	-5,400	-33,700	-139,200	175,000
Short Term Debt Payments	-7,800	-157,500	-253,800	-36,600
Short Term Debt Issuance	2,400	123,800	114,600	211,600
Net Long Term Debt Issuance	498,500	170,200	497,800	498,100
Long Term Debt Payments	-1,250,000	-1,825,100	-1,000,000	-1,000,000
Long Term Debt Issuance	1,748,500	1,995,300	1,497,800	1,498,100
Investing Cash Flow	-2,485,400	-2,699,200	-2,270,800	-2,146,300
Cash Flow From Continuing Investing Activities	-2,485,400	-2,699,200	-2,270,800	-2,146,300
Net Other Investing Changes	-62,100	-72,700	53,900	-126,300
Net Investment Purchase And Sale	59,300	151,000	8,900	-238,000
Sale Of Investment	392,900	778,500	619,400	139,900
Purchase Of Investment	-333,600	-627,500	-610,500	-377,900
Net Business Purchase And Sale	-177,100	0	0	59,300
Sale Of Business		0	0	59,300	1,175,000
Purchase Of Business	-177,100	0	0
Net PPE Purchase And Sale	-2,305,500	-2,777,500	-2,333,600	-1,841,300
Purchase Of PPE	-2,305,500	-2,777,500	-2,333,600	-1,841,300
Operating Cash Flow	4,747,500	6,095,600	6,008,700	4,397,300
Cash Flow From Continuing Operating Activities	4,747,500	6,095,600	6,008,700	4,397,300
Dividend Received Cfo	294,400	333,300	222,800	231,200
Change In Working Capital	-1,494,400	-1,048,800	-1,133,400	-2,133,000
Change In Other Working Capital	215,600	218,800	-204,500	263,800
Change In Other Current Liabilities	-1,576,700	-1,294,900	-1,443,800	-1,625,600
Change In Payables And Accrued Expense	364,800	-33,900	152,600	195,900
Change In Payable	364,800	-33,900	152,600	195,900
Change In Account Payable	261,000	28,000	100,100	345,500
Change In Tax Payable	103,800	-61,900	52,500	-149,600
Change In Income Tax Payable	103,800	-61,900	52,500	-149,600
Change In Prepaid Assets					251,100
Change In Inventory	-408,400	42,800	366,400	-641,000
Change In Receivables	-89,700	18,400	-4,100	-326,100
Changes In Account Receivables	-89,700	18,400	-4,100	-326,100
Other Non Cash Items	1,531,100	1,346,800	1,392,700	1,429,900
Stock Based Compensation	318,300	308,300	302,700	271,500
Deferred Tax	-90,600	-13,800	-59,400	-37,800
Deferred Income Tax	-90,600	-13,800	-59,400	-37,800
Depreciation Amortization Depletion	1,771,500	1,592,400	1,450,300	1,529,400
Depreciation And Amortization	1,771,500	1,592,400	1,450,300	1,529,400
Operating Gains Losses	560,500	-184,900	-291,700	-177,300
Earnings Losses From Equity Investments	-274,200	-306,400	-301,800	-268,700
Gain Loss On Sale Of Business			0	0	-864,500
Net Income From Continuing Operations	1,856,700	3,762,300	4,124,700	3,283,400

These metrics estimate what Starbucks Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

N/A

Margin of Safety

—

Market Cap ÷ Company Value

-0.80

P/B Ratio

-14.76

Warren's Owner Earnings

$5.9B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$37.2B

vs > $1.5B revenue

❌ Strong Financial Condition

0.72x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.33%

vs Uninterrupted dividends

❌ Earnings Growth

-42.4% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

80.1x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

N/A (negative book value)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-28.72

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

N/A

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	124.2%	73.9%	56.6%	56.1%	N/A
Repurchase of Capital Stock	$0M	-$1.3B	-$984M	-$4.0B	N/A
Free Cash Flow	$2.4B ▼	$3.3B ▼	$3.7B ▲	$2.6B •	N/A •
Warren's Owner Earnings	$5.9B	$8.1B	$7.9B	$6.7B	N/A

Peers & Industry Comparison

Restaurants — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
SBUX	$104.88	$119.5B	80.06	22.8%	5.0%	$37.2B
MCD McDonald's Corporation	$284.41	$202.2B	23.8	57.4%	31.9%	$26.9B
YUM Yum! Brands, Inc.	$154.12	$42.6B	24.8	45.7%	20.5%	$8.5B
QSR Restaurant Brands International	$80.13	$36.6B	30.5	33.8%	8.2%	$9.4B
DPZ Domino's Pizza Inc	$330.27	$11.0B	19.0	28.7%	11.9%	$5.0B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.13%

Low — management has little skin in the game

Return on Assets (ROA)

5.8%

Strong — management uses assets efficiently

Debt Trend YoY

+3.1% YoY

Debt is roughly stable

Leadership Team

Brian Niccol

Chairman & CEO

Age 51

Pay: $11,111,188

0.599% of net income

Mike Grams

EVP & COO

Age 54

Pay: $1,380,012

0.074% of net income

Brady Brewer

Chief Executive Officer of Starbucks International

Age 52

Pay: $1,300,465

0.070% of net income

Andy Adams

Senior Vice President of Global Growth & Concepts

Janet Landers

Senior Vice President of Business Technology

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	81.90%	114,410,675
Capital World Investors	60.65%	84,727,405
Capital Research Global Investors	58.83%	82,181,929
Blackrock Inc.	57.53%	80,370,113
State Street Corporation	34.27%	47,869,056
Geode Capital Management, LLC	18.88%	26,373,084
FMR, LLC	18.55%	25,914,380
Morgan Stanley	15.23%	21,275,936

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

1.01

Moderate volatility — moves slightly more than market

Short Interest

4.4% of float

Low short interest — market is not heavily bearish

Current Ratio

0.92x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $77.99 Current: $104.88 High: $107.52

Currently at 91% of 52-week range

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