Starbucks Corporation (SBUX)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with durable demand, honest economics, and a price that leaves room for error. Starbucks has a global store network, three segments, and 381,000 employees; its coffee and food are sold through stores and packaged channels, which gives it scale. That scale is a real moat, but it does not immunize the business from weak sales. In fiscal Q3 2026, the quarter ended 2026-06-28, revenue was $9.3B, net income $1.0B, and diluted EPS $0.91; a year earlier, in fiscal Q3 2025, the quarter ended 2025-06-29, revenue was $9.5B, net income $558.3M, and diluted EPS $0.49. So profit rebounded sharply, yet sales slipped. The annual picture is less comforting: FY2025, period ended 2025-09-28, net income was $1.9B on $37.2B revenue versus FY2024, period ended 2024-09-29, net income of $3.8B on $36.2B revenue. FairStock labels it a STALWART from 14.9% five-year profit growth and 9.6% revenue growth, but FY2025 shows how uneven that record can be. At the 2026-10-26 close of $102.69, FairStock calculates a P/E of 59.36, EV/EBITDA of 25.27, FCF yield of 3.1%, and a 40/100 score. ROCE is 8.02%, not high; Altman Z-score is 1.86 and Piotroski F-score is 7/9. Free cash flow of $3.6B and a 2.45% dividend yield are real, but the price already assumes recovery. I see quality and scale, but not a margin of safety at these numbers.

In plain English: Starbucks sells coffee, tea, food, and packaged drinks through its stores and other channels around the world. The business still produces cash and has a strong global presence, but annual profits have fallen and revenue has barely grown. At $102.69 on 2026-10-26, the shares look expensive compared with the company's recent earnings and the cash it produces.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-28) · fiscal Q2 2026 10-Q (period ended 2026-03-29) · fiscal Q1 2026 10-Q (period ended 2025-12-28) · fiscal Q3 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-09-28) · FY2024 10-K (period ended 2024-09-29) · FY2023 10-K (period ended 2023-10-01)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer