Is Starbucks stock a buy right now?
As of early May 2025, Starbucks shares are trading near $82.01, with average daily trading volume jumping to over 11 million shares and recent spikes exceeding 18 million. This surge in trading activity follows the company’s announcement of its 'Back to Starbucks' turnaround plan and significant leadership changes, including the appointment of Brian Niccol as Chairman and CEO and Cathy Smith as CFO. Despite short-term headwinds such as declining store traffic in North America and margin compression, Starbucks has continued to deliver resilience, underpinned by a robust dividend (60 consecutive quarters, a 19% CAGR) and steady international expansion—387 new locations added in the first half of FY2025. Industry sentiment is cautiously constructive: while technical indicators currently point bearish, the stock is nearing oversold conditions, which savvy investors often interpret as an entry opportunity for quality names. Within the broader restaurant sector, Starbucks remains a unique global leader with a powerful brand and diversified store footprint. The consensus target price among more than 34 national and international banks stands at $106.60, reflecting confidence in the company's turnaround and long-term growth story. For investors who appreciate strong fundamentals amid cyclical softness, Starbucks merits close consideration at these levels.
- Consistent dividend history with 60 straight quarterly payments and nearly 19% annual growth.
- Rapid international expansion—387 new stores opened in six months, strengthening global presence.
- Robust digital engagement and innovation in loyalty programs drive customer retention.
- Resilient brand leadership and scale in the competitive global restaurant sector.
- Turnaround strategy under new CEO showing early signs of operational improvement.
- Near-term margin pressure and earnings volatility amid operational resets.
- Competitive intensity and flat store traffic in North America require continued execution focus.
- What is Starbucks?
- How much is Starbucks stock?
- Our full analysis on Starbucks </b>stock
- How to buy Starbucks stock in United States?
- Our 7 tips for buying Starbucks stock
- The latest news about Starbucks
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Starbucks’ performance for over three years. Each month, hundreds of thousands of users across the United States count on us to interpret market trends and highlight top investment opportunities. Our analyses are informational in nature and do not represent investment advice. In line with our ethical guidelines, we have never been, and will never be, compensated by Starbucks.
What is Starbucks?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | United States | A US-based global coffeehouse leader, with strong brand recognition worldwide. |
💼 Market | NASDAQ | Traded on NASDAQ under the symbol SBUX, offering high daily liquidity. |
🏛️ ISIN code | US8552441094 | Unique international identifier for Starbucks shares, facilitating global trading. |
👤 CEO | Brian Niccol | New CEO, recently appointed, is leading a major turnaround and efficiency push. |
🏢 Market cap | $93.2 billion | Large-cap status signals industry leadership, but recent declines reflect operational concerns. |
📈 Revenue | $36.1 billion (ttm) | Annual sales are growing marginally; recent quarters show pressure on comparable store growth. |
💹 EBITDA | ~$6.6 billion (ttm) | Solid cash flow generation, but margins are under compression due to higher costs. |
📊 P/E Ratio (Price/Earnings) | 29.8 | Valuation is above market average, implying high expectations amid current headwinds. |
How much is Starbucks stock?
The price of Starbucks stock is rising this week. Starbucks (SBUX) is currently trading at $82.01, gaining $1.96 (up 2.45%) over the last 24 hours but down 2.15% for the week. With a market capitalization of $93.2 billion and an average trading volume of 11.36 million shares over the past three months, the stock remains actively traded.
Metric | Value |
---|---|
P/E Ratio | 29.82 |
Dividend Yield | 2.98% |
Beta | 1.00 |
Given recent fluctuations and ongoing turnaround efforts, investors should note potential volatility as well as opportunities for long-term growth.
Check out the USA's best brokers!Compare brokersOur full analysis on Starbucks stock
After a rigorous review of Starbucks Corporation’s latest quarterly results, recent share performance, and a broad range of industry and technical data—integrated with proprietary models assessing financial ratios, sentiment, and market positioning—we provide a data-rich perspective on SBUX’s present investment case. Starbucks has navigated a challenging three-year period, yet operational resilience, evolving strategy, and shareholder-focused initiatives stand out amid evolving sector conditions. So, why might Starbucks stock once again represent a compelling strategic entry point into the consumer discretionary and restaurant sector as 2025 approaches?
Recent Performance and Market Context
Starbucks shares closed at $82.01 on May 2, 2025, a level clearly below last year’s highs but distinctly above the 52-week low of $71.55. While the stock has fallen 17% over the previous six months—impacted by challenging North American traffic and cost inflation—it maintains a positive one-year gain of over 10%. Notably, recent sessions saw trading volume surge (153% above the 3-month average), a typical indicator of institutional repositioning and rising investor attention.
Macroeconomically, the consumer discretionary landscape is stabilizing with moderating inflation and ongoing wage growth, providing a backdrop of gradually improving consumer sentiment. Despite sector-wide pressures, sustained demand for affordable indulgences and "everyday luxuries" places Starbucks well within a defensive growth segment. The company’s ongoing turnaround strategy and rising international store activity reinforce its recovery case, offering a positive long-term outlook despite short-term earnings volatility.
Importantly, the leadership transition—featuring Brian Niccol as Chairman and CEO and Cathy Smith as CFO—signals a strong commitment to operational discipline, strategic innovation, and enhancing shareholder value. The company is aligning with investor demands for clear, results-driven transformation.
Technical Analysis
From a technical analysis perspective, Starbucks’ chart exhibits several bullish inflection points despite ongoing bearish signals from traditional indicators. The stock currently trades beneath its short- and long-term moving averages (20, 50, 100, and 200-day EMAs), signaling recent weakness. However, these very conditions often set up attractive entry opportunities for patient investors.
- Relative Strength Index (RSI): At 34.67, the RSI is nearing oversold territory, which historically precedes technical rebounds for SBUX.
- MACD: Currently at -3.66, the MACD reveals downward momentum but is flattening, a common sign of bottoming out.
- Williams %R and CCI: Williams %R at -59.63 and CCI at -139.04 indicate the stock is technically oversold, potentially triggering a short-term reversal.
Key support is found at $80.27; Starbucks has demonstrated resilience above this level through amplified volume and buying interest, while technical resistance is marked at $82.71. A sustained move above this threshold could confirm a developing bullish phase. The ADX at 38.96 confirms the existence of a strong trend, but with reversal signals forming, Starbucks may be transitioning out of its corrective pattern.
Fundamental Analysis
Despite challenges in Q2 FY2025 results—revenue growth of 2.3% year-over-year with a temporary margin contraction—Starbucks continues to demonstrate structural advantages compared to peers. The company reported $8.76 billion in quarterly revenue, and an almost even split between company-operated (53%) and licensed (47%) stores, offering flexibility and resilience across markets.
While non-GAAP EPS dropped 40% to $0.41 (GAAP EPS by 50% to $0.34), these outcomes largely correspond to industry-wide headwinds in labor and input costs, as well as U.S. store traffic. Importantly, international performance remains robust, with 2% comparable sales growth outside North America and strong results in China—Starbucks’s second-largest market. Notably, China comparable sales stabilized at 0% in Q2 2025 after double-digit declines during 2024, providing a platform for future growth.
From a valuation lens, Starbucks trades at a trailing P/E of 29.82 and P/S of 2.57—still attractive metrics relative to both its historical range and major consumer discretionary competitors. The company’s beta of 1.00 indicates a balanced risk profile, further strengthening its case as a strategic portfolio addition.
Structurally, Starbucks boasts a premium brand, strong pricing power, and unmatched global store density (40,789 locations as of Q2 FY2025). The “Back to Starbucks” reset aims to re-energize operational excellence, digital engagement, and menu innovation. The company’s proven capital allocation plan is highlighted by 60 consecutive quarters of dividend payments—an exceptional record for consistency and dividend growth, with a long-term CAGR near 19%.
Volume and Liquidity
Starbucks’s liquidity metrics are highly attractive to both institutional and retail investors. The stock trades above 11 million shares daily—recently soaring to 18.33 million in high-activity sessions—demonstrating strong market confidence and substantial capacity to handle large transactions with minimal price disruption.
The company’s large public float and blue-chip index membership foster dynamic valuation support in secondary markets. Consistently elevated trading volumes during periods of market recalibration frequently precede inflection points, as shifting sentiment and fresh capital flows into the stock.
Catalysts and Positive Outlook
- Strategic Turnaround: The "Back to Starbucks" plan, led by Brian Niccol, is already driving cost optimization, streamlined processes, and improved store-level economics.
- Digital Transformation: Expansion and refinement of the loyalty program and customer digital engagement tools are fueling incremental revenue and increasing brand loyalty.
- International Growth: Ongoing global expansion, with 387 new stores opened in H1 2025, particularly in fast-growing markets shifting toward premium experiences.
- Menu Innovation: Starbucks increases its competitive edge through new product launches, seasonal offerings, and customization, boosting transaction value and frequency.
- ESG and Sustainability Initiatives: Starbucks’s commitment to ethical sourcing, sustainability, and employee engagement resonates with next-generation investors and customers.
- Dividend Strength: Continued quarterly dividends and targeted increases support the case for total return-seeking investors.
Overall, moderating cost inflation and strengthening consumer spending trends bode well for Starbucks’s pricing power and margin improvement. The consensus analyst price target is $92.73, implying an approximate 13% upside before considering added upside from recent initiatives. This suggests a favorable return profile versus sector benchmarks and key peers.
Investment Strategies
- Short-Term (Swing/Active Traders): The clustering of oversold technical signals and high volume in the $80–82 range point to potential mean reversion trades, targeting resistance at $85–90.
- Medium-Term (6–12 Months): Investors seeking visible improvements in fundamentals may consider positions as the turnaround gains traction, aligning with upcoming quarterly catalysts and normalization in North American traffic.
- Long-Term (12 Months and Beyond): For multi-year investors, Starbucks’s rare blend of global scale, digital leadership, and dividend growth delivers compelling compounding potential as international expansion and new efficiencies take effect.
Positioning at or near technical lows—especially when accompanied by broad market pessimism—has historically offered attractive risk/reward profiles for quality consumer stocks like Starbucks. With short-term headwinds already priced in and catalysts ahead, the present environment appears highly favorable for selective accumulation.
Is It the Right Time to Buy Starbucks?
Combining strong fundamental strengths, accelerating international growth, and a clear, well-communicated turnaround roadmap, Starbucks today appears well-positioned to reward patient investors. Key technical, volume, and valuation metrics all favor the argument that the current environment is supportive for new positions, with reversal signals suggesting recent weakness may soon cede to renewed upside movement.
As Starbucks refocuses on brand strength, operational excellence, and strategic expansion, the company’s long tradition of innovation and shareholder returns supports an optimistic long-term forecast. The outstanding dividend record, coupled with robust digital engagement and the capture of new markets, justifies renewed interest from income and growth investors alike.
While continued caution is warranted regarding North American traffic and margin pressures, proactive management, market liquidity, and brand strength argue for Starbucks’s upside potential. In this context, Starbucks represents an excellent option for investors seeking exposure to resilient global brands within the consumer discretionary universe—potentially on the verge of a bullish transition.
For those seeking a blend of quality, innovation, and attractive total returns, Starbucks deserves close consideration as a core holding as 2025 approaches—making the current market phase an opportune time to revisit this iconic franchise with renewed conviction.
How to buy Starbucks stock in United States?
Buying Starbucks stock online is both straightforward and secure when you use a regulated broker in the United States. As a retail investor, you can choose between two primary methods: spot buying, where you own the actual shares, or trading Contracts for Difference (CFDs), which lets you speculate on price movements without owning the stock. Each method suits different investor profiles and risk tolerances. Before getting started, it’s wise to review the key differences—which we will compare in the broker selection section further down the page.
Cash Buying
A cash purchase involves buying Starbucks (SBUX) shares outright on the stock market via your broker. You become a direct shareholder, participating in potential price appreciation and receiving quarterly dividends. U.S. brokers typically charge a fixed commission per trade, around $0–$10 per order, though many leading platforms now offer commission-free trading on U.S. stocks. However, let’s use a realistic brokerage fee of $5 for our example.
Important example
For instance, with Starbucks trading at $82.01 per share, a $1,000 investment (subtracting a $5 fee) allows you to buy approximately 12 shares ($995 ÷ $82.01 ≈ 12).
Gain scenario: If Starbucks shares rise by 10%, your shares would be worth roughly $1,100.
Result: +$100 gross gain, or +10% on your investment (excluding taxes and any other potential fees).
Trading via CFD
CFD (Contract for Difference) trading allows you to invest in Starbucks without actually owning the underlying shares. Instead, you speculate on the price movement—potentially profiting whether the stock rises or falls. CFD platforms typically charge a “spread” (small difference between buy and sell price), and, if you use leverage or hold positions overnight, financing fees may apply.
Important example
Suppose you open a CFD position on Starbucks with $1,000 and use 5x leverage. This means you control $5,000 worth of stock exposure with $1,000 of your own funds.
Gain scenario: If Starbucks stock rises by 8%, your $5,000 position increases in value by $400 (8% x $5,000 = $400).
Result: +$400 gain on a $1,000 stake (excluding fees and interest charges), or a return of +40%—demonstrating the powerful effect of leverage but also the higher risks involved.
Final Advice
Before investing in Starbucks—whether through direct share purchase or CFD trading—it’s essential to compare brokers’ fees, platforms, and trading conditions. Costs, available features, and investor protections can vary widely among providers. Your choice should reflect your personal investment goals, risk appetite, and preference for ownership or flexibility. To make an informed decision, check out our broker comparison table further down the page. Each investor is unique: select the approach that aligns best with your strategies and financial objectives.
Our 7 tips for buying Starbucks stock
📊 Step | 📝 Specific tip for Starbucks |
---|---|
Analyze the market | Review Starbucks’ recent financial results and turnaround initiatives, noting short-term headwinds like declining North American traffic versus long-term international expansion and menu innovation. |
Choose the right trading platform | Select a trusted U.S. broker with access to NASDAQ, strong customer support, and reasonable commissions to trade SBUX shares efficiently. |
Define your investment budget | Decide how much you can invest in Starbucks considering its historical volatility, and ensure your position aligns with your total portfolio size and risk tolerance. |
Choose a strategy (short or long term) | Consider a long-term approach to capture potential gains from the company’s new leadership and strategic plans, while being mindful of short-term bearish signals. |
Monitor news and financial results | Stay updated on Starbucks’ quarterly earnings, CEO announcements, and progress with the “Back to Starbucks” plan, as these often move the stock. |
Use risk management tools | Protect your investment by setting stop-loss orders, especially during periods of increased volatility and bearish technical trends. |
Sell at the right time | Watch for price rallies near resistance levels or after positive news to take profits, or consider selling before major events if risks seem elevated. |
The latest news about Starbucks
Starbucks announced a quarterly dividend of $0.61, marking 60 consecutive quarters of uninterrupted payments. This consistent track record underscores the company’s ongoing commitment to returning capital to shareholders, a positive signal for income-focused US investors. The dividend yield now stands at 2.98%, with the next ex-dividend date set for May 16, 2025, and payment to follow on May 30. Notably, the dividend has experienced a compound annual growth rate approaching 19% over this streak, highlighting Starbucks’ financial resilience and appeal as a dividend growth stock, even amidst operational volatility.
Starbucks’ “Back to Starbucks” turnaround plan is showing early signs of progress under new CEO Brian Niccol. The leadership transition finalized in 2024 introduced a renewed focus on operational efficiency, core brand values, and customer experience in North America, which remains the company’s largest market. Recent management efforts have targeted improved transaction growth and cost reduction, including a streamlined support organization and measures to curb store renovation expenses. Despite recent declines in comparable store sales and operating margins, these strategic initiatives are already being recognized as avenues for stabilizing and building long-term shareholder value, in line with recent analyst commentary.
Recent earnings revealed resilient revenues with $8.76 billion in Q2 FY2025, up 2.3% year-over-year despite industry challenges. While earnings per share declined sharply due to margin pressures—reflecting higher labor and operational costs amid softer US store traffic—the revenue increase highlights Starbucks’ enduring brand strength and ongoing customer demand, especially in a tough macroeconomic environment. North America delivered -1% in comparable store sales, but the company’s global expansion and enhanced digital engagement contributed positively to the top line.
International expansion remains a key growth driver, with 387 new stores opened globally in the first half of FY2025. Over 61% of Starbucks’ store base is concentrated in the United States and China, positioning the company strongly for regional and international recovery. In China, comparable store sales stabilized at 0%, a significant improvement from the previous-year decline. This global footprint and the mix of company-operated and licensed stores reinforce the company’s ability to capture diversified growth opportunities beyond its domestic market, helping to offset localized softness in US demand.
Starbucks shares saw a sharp increase in recent trading sessions, with volumes surging 153% above the three-month average. The last closing price stood at $82.01, with a notable intraday gain of +2.45%. This surge in trading activity could reflect increased institutional investor interest as the stock approaches oversold technical levels, supported by a relative strength index near 34.67 and consensus analyst price targets implying double-digit upside from current levels. The technical picture, though broadly bearish, suggests the possibility of a near-term rebound as investors re-evaluate the stock’s valuation and turnaround prospects.
FAQ
What is the latest dividend for Starbucks stock?
Starbucks currently pays a quarterly dividend of $0.61 per share, totaling $2.44 annually. The most recent ex-dividend date was May 16, 2025, with the payment scheduled for May 30, 2025. Starbucks boasts a strong dividend track record, having delivered 60 consecutive quarters of payments and achieving an impressive compound annual growth rate over that period. This consistent distribution highlights the company’s commitment to shareholder returns even during periods of transition.
What is the forecast for Starbucks stock in 2025, 2026, and 2027?
Based on current prices, the projected value for Starbucks stock is $106.61 at the end of 2025, $123.02 at the end of 2026, and $164.02 by the end of 2027. These optimistic projections suggest significant potential upside as the company’s new leadership executes its turnaround strategy. Starbucks’ global expansion and emphasis on digital engagement further support the case for continued long-term growth.
Should I sell my Starbucks shares?
Holding onto Starbucks shares may be a prudent choice for many investors. The company’s robust dividend history, strategic turnaround plan, and enduring brand strength contribute to its long-term appeal, even amid short-term challenges. Historically, Starbucks has demonstrated strong resilience in shifting market conditions, and its ongoing international expansion offers further growth potential. Given the current fundamentals and management’s focus on operational improvements, maintaining your position could align with a mid- to long-term investment outlook.
How are Starbucks stock dividends and capital gains taxed for U.S. investors?
For U.S. investors, dividends from Starbucks generally qualify as “qualified dividends,” typically taxed at favorable rates up to 20%, depending on your total income. If you hold SBUX in tax-advantaged accounts like IRAs or 401(k)s, dividend and capital gains taxes are deferred or exempt, providing an additional benefit. Unlike some foreign stocks, there is no withholding tax for U.S. shareholders, and reporting is straightforward when filing your annual tax return.
What is the latest dividend for Starbucks stock?
Starbucks currently pays a quarterly dividend of $0.61 per share, totaling $2.44 annually. The most recent ex-dividend date was May 16, 2025, with the payment scheduled for May 30, 2025. Starbucks boasts a strong dividend track record, having delivered 60 consecutive quarters of payments and achieving an impressive compound annual growth rate over that period. This consistent distribution highlights the company’s commitment to shareholder returns even during periods of transition.
What is the forecast for Starbucks stock in 2025, 2026, and 2027?
Based on current prices, the projected value for Starbucks stock is $106.61 at the end of 2025, $123.02 at the end of 2026, and $164.02 by the end of 2027. These optimistic projections suggest significant potential upside as the company’s new leadership executes its turnaround strategy. Starbucks’ global expansion and emphasis on digital engagement further support the case for continued long-term growth.
Should I sell my Starbucks shares?
Holding onto Starbucks shares may be a prudent choice for many investors. The company’s robust dividend history, strategic turnaround plan, and enduring brand strength contribute to its long-term appeal, even amid short-term challenges. Historically, Starbucks has demonstrated strong resilience in shifting market conditions, and its ongoing international expansion offers further growth potential. Given the current fundamentals and management’s focus on operational improvements, maintaining your position could align with a mid- to long-term investment outlook.
How are Starbucks stock dividends and capital gains taxed for U.S. investors?
For U.S. investors, dividends from Starbucks generally qualify as “qualified dividends,” typically taxed at favorable rates up to 20%, depending on your total income. If you hold SBUX in tax-advantaged accounts like IRAs or 401(k)s, dividend and capital gains taxes are deferred or exempt, providing an additional benefit. Unlike some foreign stocks, there is no withholding tax for U.S. shareholders, and reporting is straightforward when filing your annual tax return.