Starbucks Corporation, listed on NASDAQ as SBUX, is a global leader in the premium coffee market, operating over 40,000 locations worldwide. The company is known for its specialty coffee and beverages, and it competes with other major coffee chains like Dunkin' and McDonald's. Starbucks has a strong brand presence and continues to expand its global footprint.
On January 28, 2025, Starbucks reported earnings per share (EPS) of $0.69, slightly above the estimated $0.68. This performance also exceeded the Zacks Consensus Estimate of $0.66, marking a 4.55% surprise. However, this is a decrease from the $0.90 EPS reported a year ago, indicating some challenges in maintaining previous profit levels.
Starbucks' revenue for the quarter was approximately $9.4 billion, surpassing the estimated $9.3 billion. This figure was slightly above the Zacks Consensus Estimate by 1.02%, but it represents a small decline from the $9.43 billion reported in the same quarter the previous year. Despite these positive results, the company faced a 4% decline in global comparable store sales, highlighting ongoing challenges in the market.
The company's financial ratios provide insight into its valuation and financial health. Starbucks has a price-to-earnings (P/E) ratio of about 30.36, indicating that investors are willing to pay over 30 times the company's earnings. The price-to-sales ratio is around 3.15, suggesting that investors pay $3.15 for every dollar of sales. The enterprise value to sales ratio is approximately 3.77, reflecting the company's total valuation relative to its sales.
Starbucks' debt-to-equity ratio is negative at approximately -3.46, which may indicate a higher level of debt compared to equity. The current ratio is about 0.75, suggesting potential liquidity concerns as the company has less than one dollar in current assets for every dollar of current liabilities. Despite these challenges, BTIG managing director Peter Saleh describes Starbucks as being in the "early innings" of a turnaround story, indicating potential for further growth and development.
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