StarbucksSBUX -0.38%81 Debt-to-EBITDA is 4.86 as of Mar. 2026, which is 49% above its 10-year median of 3.27. GuruFocus rates SBUX with a GF Score™ of 81/100 and a GF Value™ of $98.58 (Fairly Valued). The stock has 7 warning signs investors should review. Among 300 Restaurants companies, Starbucks ranks worse than 74.67% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Starbucks's Debt-to-EBITDA or its related term are showing as below:
SBUX'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.68 Med: 3.27 Max: 8.14
Current: 5.12
During the past 13 years, the highest Debt-to-EBITDA Ratio of Starbucks was 8.14. The lowest was 0.68. And the median was 3.27.
SBUX's Debt-to-EBITDA is ranked worse than 74.67% of 300
companies
in the Restaurants industry
Industry Median: 2.905
vs SBUX: 5.12
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Starbucks Debt-to-EBITDA Related Terms
Starbucks Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Starbucks's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Restaurants subindustry, Starbucks's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Starbucks Debt-to-EBITDA vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Starbucks's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Starbucks's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Starbucks (SBUX) has a Debt-to-EBITDA of 4.86 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Starbucks. This is 49% above median its historical median of 3.27. Over the past decade, Starbucks' Debt-to-EBITDA has ranged from 0.68 to 8.14. According to the industry distribution chart, Starbucks ranks #224 out of 300 companies in the Restaurants industry, placing it in the top 74.7%.
Is Starbucks' Debt-to-EBITDA too high?
Starbucks' current Debt-to-EBITDA of 4.86 is 49% above median its 10-year median of 3.27. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 8.14. The Restaurants industry median Debt-to-EBITDA is 2.91. Starbucks' value of 4.86 is 67.3% above this industry median. Based on the distribution chart, Starbucks ranks #224 out of 300 companies in the Restaurants industry, which is below the industry midpoint. Overall, Starbucks has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Starbucks' Debt-to-EBITDA compare to MCD and YUM?
According to the Restaurants industry distribution chart, Starbucks ranks #224 out of 300 companies for Debt-to-EBITDA. This places Starbucks in the lower half of its industry. The industry median Debt-to-EBITDA is 2.91. Starbucks' value of 4.86 is 67.3% above this benchmark. Historically, Starbucks' own Debt-to-EBITDA has ranged from 0.68 to 8.14 over the past decade. While the company's 10-year median is 3.27 vs. the industry median of 2.91, Starbucks has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Restaurants company?
The median Debt-to-EBITDA among Restaurants companies is 2.91, based on 300 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Starbucks's current Debt-to-EBITDA of 4.86 is 67.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Starbucks. For the Restaurants industry, the median Debt-to-EBITDA is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starbucks's current Debt-to-EBITDA is 4.86, which is 49% above median its own 10-year median of 3.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Starbucks stock overvalued right now?
Based on GuruFocus' analysis, Starbucks (SBUX) is currently considered Fairly Valued. The stock's GF Value™ is $98.58, compared to a current price of $106.01 — trading 7.5% above its estimated fair value. The current Debt-to-EBITDA is 4.86, which is 49% above median its 10-year median of 3.27 and 67.3% above the Restaurants industry median of 2.91. Starbucks' overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Starbucks (SBUX), the current Debt-to-EBITDA is 4.86 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Starbucks (SBUX) Overvalued in 2026?
Based on GuruFocus' analysis, Starbucks stock appears to be overvalued.
The current stock price of $106.01 is trading 7.5% above its estimated GF Value™ of $98.58.
GuruFocus considers Starbucks to be Fairly Valued.
Key valuation signals for SBUX:
Debt-to-EBITDA: 4.86 (49% above median its 10-year median of 3.27)
GF Value™: $98.58 vs. price of $106.01 (7.5% above fair value)
Industry Position: 67.3% above the Restaurants median (#224 of 300)
No single metric tells the full story. See the SBUX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Starbucks stands out as the world's biggest and most recognizable coffee brand, powered by ultracustomizable beverages in-store and a sweeping footprint of nearly 41,000 cafes in over 80 countries. About 52% are company-operated, with the balance run by licensees. The company operates roasteries and sells across its North America (74% of revenue as of the end of fiscal 2025), international (21%), and channel development (5%) segments. The brand collects revenue from company-operated stores, licensee royalties, equipment and product sales, retail ready-to-drink beverages, and packaged coffee.
81GF Score
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