NASDAQ:SBUX

Starbucks (SBUX)

103.39
+1.20 (1.17%)
as of Jul 1, 2026, 8:00:00 pm Market Open.
407 watching
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Investor Insights
star iconJul 1, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Starbucks (SBUX) is currently navigating a complex landscape marked by mixed performance indicators and an ongoing turnaround under its new CEO. Recent reports suggest a positive shift, with a 4% increase in same-store sales, attributed to improved customer service and reduced employee turnover. However, experts express caution due to challenges such as international competition, high oil prices impacting consumer spending, and the necessity of addressing underperforming stores. Analysts are divided on the stock's value, with some viewing it as overbought while others see potential for long-term growth, particularly if the company can effectively implement its strategic plans and resolve ongoing labor disputes. Despite the hurdles, there is optimism regarding the brand's market position and potential recovery path.

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Consensus
Hold
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Valuation
Overvalued
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DON'T BUY

This is a very competitive space right now. The question is, how many Starbucks can you have before you have more Starbucks then you need. Competition is growing among coffee chains.

DON'T BUY
Earnings were okay, but guidance they gave going forward was not okay. The problem here is that they are everywhere and once they are everywhere, to generate more sales, you have to get more in-store sales. The law of diminishing returns. Very economically sensitive.
COMMENT
Great company. Very well-managed. Has come back a little but is still quite expensive. Trading at 27X forward earnings but it is living up to it. The issue with growth stocks is that if they disappoint, they get taken out behind the woodshed.
DON'T BUY
Great company. Really turned things around from some of the problems they encountered back in 2008. To rich a multiple for him. Trades somewhere in the 30+ multiple. He would like to see it in the low $20's.
PAST TOP PICK
(A Top Pick June 28/11. Up 35.16%.) Hit a high of just over $60 and he got stopped out in May. A great long term hold and there will probably be a re-entry point later in the year.
DON'T BUY
She is more of a value investor and the multiple on this stock is too high for her at 28X forward earnings. About 77% of revenues are from North American company. Have a bit in Europe but not making money there right now. China and Asia has a growing presence. Sensitive to coffee bean prices. She would prefer 10% lower.
PAST TOP PICK
(A Top Pick June 28/11. Up 35.06%.) Sold his holdings in the mid-$50's. Would like to own it again but he wants a little more defence in the portfolios.
COMMENT
Likes this one and has been watching it. Long-term you have definite secular growth. The PE makes him a bit shy about purchasing it. Would prefer it in me mid to early $50s.
DON'T BUY
His problem with this stock is that it is always so expensive. Trading now at about 27-28 times earnings. If they slipped a little, there is a lot of air under 27X earnings.
COMMENT
A momentum stock and he is not a momentum trader. He’d rather wait for a pullback before dipping his toes in this. You are getting into earnings increases and expectations are getting lofty. Stock is getting to the level where if you own it, you should take half of every time the stock doubles.
BUY
(Market Call Minute) Great cash flow growth and growing dividend over time.
COMMENT
A tremendous success story. They offer the middle-class people a tremendous cup of coffee without breaking the bank. This company will do fine for that reason. Presumes this will be around for a very long time.
DON'T BUY
Great coffee and a great company but not a great stock price at these levels. Little too expensive. Growing gangbusters. Opening new outlets again. Refining their menu. Trading at 26X this year's earnings and 22X next year's earnings. 10% lower might be all right.
DON'T BUY
Have had a fabulous recovery from the lows of 2008. His trouble is valuation. Hard to pay 24X earnings would be buying at 15 times. Have an unbelievable exposure to China and the growth there is going to be strong. (Would prefer Tim Hortons (THI-T), which is cheaper.)
DON'T BUY
Expensive stock. Mid to high 20’s multiple. Is priced for a lot of expectation. Last time they didn’t execute the multiple dropped a lot.
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