Key Considerations Before Investing in Starbucks (SBUX)

More and more people are talking about Starbucks over the last few weeks. Is it worth buying the Restaurant Chain stock at a price of $94.51? Only time will tell. The information below will give you a basic idea of what this investment may entail:

  • Starbucks has moved -11.6% over the last year, and the S&P 500 logged a change of 21.4%

  • SBUX has an average analyst rating of buy and is -11.8% away from its mean target price of $107.15 per share

  • Its trailing earnings per share (EPS) is $3.74

  • Starbucks has a trailing 12 month Price to Earnings (P/E) ratio of 25.3 while the S&P 500 average is 15.97

  • Its forward earnings per share (EPS) is $4.74 and its forward P/E ratio is 19.9

  • Starbucks is part of the Consumer Discretionary sector, which has an average P/E ratio of 22.96 and an average P/B of 4.24

  • SBUX has reported YOY quarterly earnings growth of 21.6% and gross profit margins of 0.3%

  • The company has a free cash flow of $3.49 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.