NASDAQ · Consumer Cyclical

Starbucks Corporation

SBUX · Restaurants

$105.41

▼ -0.75 (-0.71%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

N/A⤢

Fin. Health

F⤢

Years to Pay Off Debt 21.5 yrs

Working Capital vs Long-Term Debt -$14.2B

Working Capital -$2.4B

Valuation

D⤢

Price-to-Book N/A (neg. equity)

Cash Flow

B⤢

Free Cash Flow $1.4B

CapEx % of Net Income 27.9%

Owner Earnings $1.7B

Financial Health

Years to Pay Off Debt 21.5 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$14.2B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$2.4B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $1.4B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 27.9%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.7B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $120.2B

Enterprise Value $138.7B

P/E (TTM) 47.70

Dividend Yield 2.35%

Exchange NASDAQ

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin N/A

Company Info

Sector Consumer Cyclical

Industry Restaurants

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Starbucks Corporation at $105.41.

The business passes only 1 of 5 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.

Showing Key Metrics

Income Highlights

Metric	Q3 2026	Q4 2025
Gross Profit %	N/A•	21.1%
Operating Margin %	N/A•	9.3%
Net Income %	N/A•	3.0%
Diluted EPS	0.59▲	0.26

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025
Total Assets	$28.3B	$32.2B
Total Debt	$22.4B▼	$25.5B
Working Capital	-$2.4B▼	$536M
Years to Pay Debt	21.46	86.84

Cash Flow Highlights

Metric	Q2 2026	Q4 2025
Free Cash Flow	$1.4B▲	$1.3B
Owner Earnings	$1.7B	$1.0B
CapEx % of Net Income	27.9%	110.4%

Income Statement

	2026	2025
Tax Effect Of Unusual Items		-22,527
Tax Rate For Calcs		0
Normalized EBITDA		1,423,800
Total Unusual Items		-88,100
Total Unusual Items Excluding Goodwill		-88,100
Net Income From Continuing Operation Net Minority Interest		293,300
Reconciled Depreciation		431,900
Reconciled Cost Of Revenue		7,794,900
EBITDA		1,335,700
EBIT		903,800
Net Interest Income		-126,000
Interest Expense		139,000
Interest Income		13,000
Normalized Income		358,873
Net Income From Continuing And Discontinued Operation		293,300
Total Expenses		8,996,800
Rent Expense Supplemental		804,800
Total Operating Income As Reported		890,800
Diluted Average Shares	1,144,600	1,141,900
Basic Average Shares	1,140,100	1,139,100
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders		293,300
Net Income Common Stockholders		293,300
Net Income		293,300
Minority Interests		100
Net Income Including Noncontrolling Interests		293,200
Net Income Continuous Operations		293,200
Tax Provision		471,600
Pretax Income		764,800
Other Income Expense		-27,500
Special Income Charges		-88,100
Gain On Sale Of Business
Restructuring And Mergern Acquisition		88,100
Earnings From Equity Interest		60,600
Net Non Operating Interest Income Expense		-126,000
Interest Expense Non Operating		139,000
Interest Income Non Operating		13,000
Operating Income		918,300
Operating Expense		1,170,900
Other Operating Expenses		131,200
Depreciation Amortization Depletion Income Statement		400,900
Depreciation And Amortization In Income Statement		400,900
Selling General And Administration		638,800
General And Administrative Expense		638,800
Other Gand A		638,800
Gross Profit		2,089,200
Cost Of Revenue		7,825,900
Total Revenue		9,915,100
Operating Revenue		9,318,400

Balance Sheet

	2026	2025
Ordinary Shares Number	1,139,800	1,139,100
Share Issued	1,139,800	1,139,100
Net Debt	9,828,800	12,667,000
Total Debt	22,434,100	25,470,900
Tangible Book Value	-9,085,400	-9,867,000
Invested Capital	5,604,300	7,691,700
Working Capital	-2,382,700	536,000
Net Tangible Assets	-9,085,400	-9,867,000
Capital Lease Obligations	9,155,500	9,390,500
Common Stock Equity	-7,674,300	-8,388,700
Total Capitalization	4,105,900	6,192,200
Total Equity Gross Minority Interest	-7,667,100	-8,381,300
Minority Interest	7,200	7,400
Stockholders Equity	-7,674,300	-8,388,700
Gains Losses Not Affecting Retained Earnings	-47,900	-425,900
Other Equity Adjustments	-47,900	-425,900
Retained Earnings	-8,542,500	-8,685,400
Additional Paid In Capital	915,000	721,500
Capital Stock	1,100	1,100
Common Stock	1,100	1,100
Total Liabilities Net Minority Interest	35,961,800	40,609,600
Total Non Current Liabilities Net Minority Interest	26,044,900	29,123,000
Other Non Current Liabilities	748,000	746,500
Non Current Deferred Liabilities	5,632,500	5,748,000
Non Current Deferred Revenue	5,632,500	5,748,000
Long Term Debt And Capital Lease Obligation	19,664,400	22,628,500
Long Term Capital Lease Obligation	7,884,200	8,047,600
Long Term Debt	11,780,200	14,580,900
Current Liabilities	9,916,900	11,486,600
Other Current Liabilities		1,754,600
Current Deferred Liabilities	1,818,100	2,121,700
Current Deferred Revenue	1,818,100	2,121,700
Current Debt And Capital Lease Obligation	2,769,700	2,842,400
Current Capital Lease Obligation	1,271,300	1,342,900
Current Debt	1,498,400	1,499,500
Other Current Borrowings	1,498,400	1,499,500
Current Provisions	455,000	335,500
Payables And Accrued Expenses	4,874,100	4,432,400
Current Accrued Expenses	1,708,700	1,672,600
Payables	3,165,400	2,759,800
Dividends Payable	706,600	706,200
Total Tax Payable	681,600	371,400
Income Tax Payable	417,600	127,500
Accounts Payable	1,777,200	1,682,200
Total Assets	28,294,700	32,228,300
Total Non Current Assets	20,760,500	20,205,700
Other Non Current Assets	857,200	778,600
Non Current Deferred Assets	1,506,400	1,600,800
Non Current Deferred Taxes Assets	1,506,400	1,600,800
Investments And Advances	2,013,200	720,300
Investmentin Financial Assets	313,200	288,300
Available For Sale Securities	313,200	288,300
Long Term Equity Investment	1,700,000	432,000
Investmentsin Joint Venturesat Cost
Investments In Other Ventures Under Equity Method
Goodwill And Other Intangible Assets	1,411,100	1,478,300
Other Intangible Assets	172,300	167,200
Goodwill	1,238,800	1,311,100
Net PPE	14,972,600	15,627,700
Accumulated Depreciation	-10,657,200	-10,180,800
Gross PPE	25,629,800	25,808,500
Leases	10,420,500	10,399,200
Construction In Progress	326,100	309,100
Other Properties	12,387,800	12,610,400
Machinery Furniture Equipment	1,769,300	1,764,400
Buildings And Improvements	666,500	670,400
Land And Improvements	59,600	55,000
Current Assets	7,534,200	12,022,600
Other Current Assets	410,800	374,100
Assets Held For Sale Current		4,716,600
Inventory	2,208,900	2,114,400
Finished Goods	702,000	685,900
Raw Materials	1,506,900	1,428,500
Receivables	1,304,200	1,219,200
Accounts Receivable	1,304,200	1,219,200
Allowance For Doubtful Accounts Receivable
Gross Accounts Receivable
Cash Cash Equivalents And Short Term Investments	3,610,300	3,598,300
Other Short Term Investments	160,500	184,900
Cash And Cash Equivalents	3,449,800	3,413,400

Cash Flow

	2026	2025
Free Cash Flow	1,350,500	1,274,000
Repayment Of Debt	-1,815,900	0
Issuance Of Debt	0	2,500
Issuance Of Capital Stock	15,400	17,700
Capital Expenditure	-291,400	-323,700
Interest Paid Supplemental Data	143,000	142,400
Income Tax Paid Supplemental Data	93,100	94,900
End Cash Position	3,449,800	3,413,400
Other Cash Adjustment Outside Changein Cash		-347,200
Beginning Cash Position	1,532,000	3,219,800
Effect Of Exchange Rate Changes	-6,200	9,000
Changes In Cash	1,354,000	531,800
Financing Cash Flow	-2,511,600	-743,000
Cash Flow From Continuing Financing Activities	-2,511,600	-743,000
Net Other Financing Charges	-4,500	-58,100
Cash Dividends Paid	-706,600	-705,100
Common Stock Dividend Paid	-706,600	-705,100
Net Common Stock Issuance	15,400	17,700
Common Stock Issuance	15,400	17,700
Net Issuance Payments Of Debt	-1,815,900	2,500
Net Short Term Debt Issuance	0	2,500
Short Term Debt Payments	0	0
Short Term Debt Issuance	0	2,500
Net Long Term Debt Issuance	-1,815,900
Long Term Debt Payments	-1,815,900
Long Term Debt Issuance
Investing Cash Flow	2,223,700	-322,900
Cash Flow From Continuing Investing Activities	2,223,700	-322,900
Net Other Investing Changes	-42,700	-25,700
Net Investment Purchase And Sale	13,600	26,500
Sale Of Investment	41,600	77,500
Purchase Of Investment	-28,000	-51,000
Net Business Purchase And Sale	2,544,200	0
Net PPE Purchase And Sale	-291,400	-323,700
Purchase Of PPE	-291,400	-323,700
Operating Cash Flow	1,641,900	1,597,700
Cash Flow From Continuing Operating Activities	1,641,900	1,597,700
Dividend Received Cfo	43,200	96,700
Change In Working Capital	198,600	-58,400
Change In Other Working Capital	152,000	390,400
Change In Other Current Liabilities	-402,600	-433,200
Change In Payables And Accrued Expense	554,400	16,400
Change In Payable	554,400	16,400
Change In Account Payable	185,800	-39,000
Change In Tax Payable	368,600	55,400
Change In Income Tax Payable	368,600	55,400
Change In Inventory	-54,400	-31,800
Change In Receivables	-50,800	-200
Changes In Account Receivables	-50,800	-200
Other Non Cash Items	341,100	358,200
Stock Based Compensation	71,100	126,100
Deferred Tax	-110,900	302,600
Deferred Income Tax	-110,900	302,600
Depreciation Amortization Depletion	389,700	431,900
Depreciation And Amortization	389,700	431,900
Operating Gains Losses	-335,900	47,400
Earnings Losses From Equity Investments	-59,800	-62,300
Net Income From Continuing Operations	1,045,000	293,200

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.76x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$1.4B

vs Positive

Operating Cash Flow

$1.6B

Latest quarter · Buffett's cash reality check

ROIC

nan%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

⚠ Negative Net Assets

Net Assets: -$7.7B

⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.

Peers & Industry Comparison

Restaurants — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
SBUX	$105.41	$120.2B	47.70	N/A	N/A	N/A
MCD McDonald's Corporation	$276.52	$195.2B	21.9	57.6%	32.4%	$27.8B
YUM Yum! Brands, Inc.	$161.14	$43.3B	13.0	44.7%	39.1%	$8.8B
QSR Restaurant Brands International	$77.69	$35.6B	17.1	34.3%	15.3%	$9.8B
DPZ Domino's Pizza Inc	$334.28	$11.0B	18.4	28.9%	12.0%	$5.1B

"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

Debt Trend YoY

-8.0% YoY

Debt is declining — management is deleveraging

Leadership Team

Brian Niccol

Chairman & CEO

Age 51

Pay: $11,111,188

Catherine Smith CPA

Executive VP & CFO

Age 61

Pay: $3,306,718

Mike Grams

EVP & COO

Age 54

Pay: $1,380,012

Brady Brewer

Chief Executive Officer of Starbucks International

Age 52

Pay: $1,300,465

Andy Adams

Senior Vice President of Global Growth & Concepts

Top Institutional Holders

Institution	% Owned	Shares
Capital Research Global Investors	9.62%	109,649,535
Capital World Investors	8.02%	91,475,472
Blackrock Inc.	7.30%	83,222,518
Vanguard Capital Management LLC	6.53%	74,431,675
State Street Corporation	4.32%	49,260,268
Invesco Ltd.	3.38%	38,497,546
Vanguard Portfolio Management LLC	2.64%	30,105,849
Geode Capital Management, LLC	2.51%	28,569,031

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

1.01

Moderate volatility — moves slightly more than market

Short Interest

4.3% of float

Low short interest — market is not heavily bearish

Current Ratio

0.76x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $81.97 Current: $105.41 High: $111.50

Currently at 79% of 52-week range