Starbucks Corporation (SBUX) Stock Analysis
Consumer Cyclical · Restaurants
Sell if holding. Engine safety override at $106.11: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.8/10. Specifically: Below-average business quality; Rich valuation.
Starbucks operates 40,990 stores in 89 markets (21,514 company-operated, 19,476 licensed), selling specialty coffee, tea, and food with North America generating 74% of fiscal 2025 net revenues. Revenue comes primarily from company-operated stores (83% of net revenues) and... Read more
Sell if holding. Engine safety override at $106.11: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.8/10. Specifically: Below-average business quality; Rich valuation. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.8/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 70d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent Developments — Starbucks Corporation
Latest news
- Starbucks Shares Hold Steady As Investors Continue To Digest $400 Million Restructuring Hit — benzinga May 20, 2026 negative
- 10 Consumer Discretionary Stocks Whale Activity In Today's Session — benzinga May 20, 2026 neutral
- Employment Department Posts Warn Notice For Starbucks, To Lay Off 252 Workers In Seattle On July 17, 2026 — benzinga May 20, 2026 negative
- CAVA Group Stock Recovery Has Faltered: Will Earnings Spark A Rebound? — benzinga May 17, 2026 neutral
- Starbucks Stock Holds Steady As Investors Digest Extensive Corporate Restructuring Plan — benzinga May 15, 2026 neutral
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicNorth America74%10-K Item 1A: 'Our financial performance is heavily reliant on our North America operating segment, which accounted for approximately 74% of total net revenues in fiscal year 2025.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
4 floor-breakers
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $106.11: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.8/10. Specifically: Below-average business quality; Rich valuation. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $100.56. Score 4.8/10, moderate confidence.
Take-profit target: $106.08 (-0.5% upside). Prior stop was $100.56. Stop-loss: $100.56.
Concentration risk — Geographic: North America (74.0%); Target reached (-8.0% upside); Quality below floor (3.2 < 4.0).
Starbucks Corporation trades at a P/E of 81.4 (forward 35.2). TrendMatrix value score: 3.6/10. Verdict: Sell.
49 analysts cover SBUX with a consensus score of 3.5/5. Average price target: $107.
What does Starbucks Corporation do?Starbucks operates 40,990 stores in 89 markets (21,514 company-operated, 19,476 licensed), selling specialty coffee,...
Starbucks operates 40,990 stores in 89 markets (21,514 company-operated, 19,476 licensed), selling specialty coffee, tea, and food with North America generating 74% of fiscal 2025 net revenues. Revenue comes primarily from company-operated stores (83% of net revenues) and licensed store royalties and product sales (12%), with Channel Development contributing 5% via the Nestle Global Coffee Alliance.