NASDAQ:SBUX

Starbucks (SBUX)

106.15
-0.10 (0.09%)
as of Sep 1, 2026, 8:00:00 pm Market Open.
407 watching
0
Investor Insights
star iconSep 1, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

Analysts have mixed views on Starbucks (SBUX-Q), highlighting some positive trends but also significant challenges. The new CEO has initiated plans aimed at revitalizing the brand by focusing on customer service and reducing turnover, which has resulted in improved same-store sales. There is a cautious optimism regarding operational changes, such as hiring more baristas to enhance service speed and efficiency, despite the setbacks from store closures and layoffs. However, some experts express concerns about the competitive landscape and rising consumer costs, particularly due to high oil prices. The ongoing union strike and the necessity for Starbucks to penetrate Middle America are viewed as potential hurdles for the turnaround effort, suggesting a complex path ahead.

consensus icon
Consensus
Mixed
valuation icon
Valuation
Fair Value
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DON'T BUY
If you bought this a few years, you have done very well. But US growth has flatlined, which is a big challenge. Abroad, as in the UK and Canada, there is heavy coffee competition from other chains. China drinks tea, so penetration into that territory is limited. He missed buying this, but won't buy it now--it's too rich.
DON'T BUY
He had it for quite a long time and exited last summer. He won't likely get back in. They do everything well and are a well run company but he sees opportunities elsewhere.
DON'T BUY
He rarely goes to one. A great company. The CEO is now thinking of running for president. With all retail stories, how many more good locations can they find to drive earnings? The food concept at breakfast has worked well. What's their next frontier? Where else to expand to?
WAIT
Phenomenal company. Stock is not cheap here. Facing competition, especially from McDonald's. Great business, but not a great entry point.
BUY ON WEAKNESS
It's innovative and has built a coffee culture in places around the world. Wait for a pullback and hold it long-term.
COMMENT
With a very long term horizon you can look at it. It is not a value stock. A company that has done a good job and keep on innovating.
WATCH
He's owned this and it's on his radar. It's moving above its 200-day moving average. Trading at 25x earnings with a 14% growth rate. They're paring back on some stores which has increased margins a little. He likes it.
BUY
It tends to do well at this time of the year. The revenue on gift cards is recognized when they are redeemed so the first part of the year benefits from them. They tend to do well at the beginning of the year. It gets weaker in April and May. It has technical strength also.
DON'T BUY
It has always been too expensive for him. Maybe they have built out too many stores, but it has had a hard time continuing to justify valuations.
WATCH
Moving well nicely. Had some positive results consolidating some of the stores they have. Valuation has come down trading at 25 times earnings with 15% growth rate. They are trying to personalize what thy are ding with apps. They had own it but sold it. It is on his radar now.
DON'T BUY

They were the darling of Wall Street for many years with high multiple as they continued to grow. Now they hit a rough patch. The multiple is still in the low 20’s. Probably too high for his liking. He prefers to pay a higher price for more certainty.

COMMENT

A long-tome owner, despite this going sideways for a few years. China hasn't yet panned out, with some missteps. It opens a store every four hours around the world. Still likes it. They're working through mobile ordering. It will break-out. He's sticking with it.

WAIT

Trying to recalibrate. P/E used to be higher. Trying to get into alcoholic beverages. Still looks pricey. Wait for another quarter before getting back in.

BUY

They are watching it and love the growth they see. Going into China should be a good move for them. The new offerings, including alcohol, add to the growth opportunity. He would watch for a good entry point, but holding for a long term investor is good. Yield 3%.

COMMENT

Expanding into China is key. Headwinds are management turnover and competition from custom coffee shops--Starbucks is no longer special or unique. Let's see what Q2 earnings are like.

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