NASDAQ:SBUX

Starbucks (SBUX)

103.98
-0.47 (0.45%)
as of Jul 22, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 22, 2026, 12:00 am

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

Starbucks (SBUX) is currently experiencing a challenging yet transformative period under its new CEO. Recent improvements in customer service and a reported 4% increase in same-store sales indicate a potential turnaround for the company, although adaptation to changing market conditions, including high oil prices and international competition, pose ongoing risks. Analysts suggest that significant investment in locations with stronger performance is necessary while the company must also expand its footprint into Middle America. The company’s operational adjustments, including hiring more baristas and simplifying its menu, are viewed positively, yet turning around the brand will take time. Despite recent fluctuations in stock price, the long-term outlook remains cautiously optimistic, underpinned by initiatives aimed at stabilizing the U.S. business and improving market share.

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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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