StarbucksSBUX -0.36%81 Gross Margin % is 20.08% as of Mar. 2026, which is 28% below its 10-year median of 27.81. GuruFocus rates SBUX with a GF Score™ of 81/100 and a GF Value™ of $98.76 (Fairly Valued). The stock has 8 warning signs investors should review. Among 359 Restaurants companies, Starbucks ranks worse than 83.84% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Starbucks's Gross Profit for the
three
months ended in Mar. 2026 was $1,914 Mil. Starbucks's Revenue for the
three
months ended in Mar. 2026 was $9,532 Mil. Therefore, Starbucks's Gross Margin % for the quarter that ended in Mar. 2026 was 20.08%.
The historical rank and industry rank for Starbucks's Gross Margin % or its related term are showing as below:
SBUX'
s Gross Margin % Range Over the Past 10 Years
Min: 21.51 Med: 27.81 Max: 31.63
Current: 21.63
During the past 13 years, the highestGross Margin % of Starbucks was 31.63%. The lowest was 21.51%. And the median was 27.81%.
SBUX's Gross Margin % is ranked worse than 83.84% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs SBUX: 21.63
Starbucks had a gross margin of 20.08% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Starbucks was 0.30% per year.
Starbucks (NAS:SBUX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Starbucks had a gross margin of 20.08% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Starbucks Gross Margin % Related Terms
Starbucks Gross Margin % Historical Data
* Premium members only.
The historical data trend for Starbucks's Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Starbucks's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Starbucks's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Starbucks (SBUX) has a Gross Margin % of 20.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Starbucks and its competitors. This is 28% below median its historical median of 27.81. Over the past decade, Starbucks' Gross Margin % has ranged from 21.51 to 31.63. According to the industry distribution chart, Starbucks ranks #301 out of 359 companies in the Restaurants industry, placing it in the top 83.8%.
Is Starbucks' Gross Margin % too high?
Starbucks' current Gross Margin % of 20.08% is 28% below median its 10-year median of 27.81. Over the past 10 years, this metric has ranged from a low of 21.51 to a high of 31.63. The Restaurants industry median Gross Margin % is 45.71. Starbucks' value of 20.08% is 56.1% below this industry median. Based on the distribution chart, Starbucks ranks #301 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. 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' Gross Margin % compare to CMG and YUM?
According to the Restaurants industry distribution chart, Starbucks ranks #301 out of 359 companies for Gross Margin %. This places Starbucks in the lower half of its industry. The industry median Gross Margin % is 45.71. Starbucks' value of 20.08% is 56.1% below this benchmark. Historically, Starbucks' own Gross Margin % has ranged from 21.51 to 31.63 over the past decade. While the company's 10-year median is 27.81 vs. the industry median of 45.71, Starbucks has consistently been below 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 Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Starbucks's current Gross Margin % of 20.08% is 56.1% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Starbucks and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starbucks's current Gross Margin % is 20.08%, which is 28% below median its own 10-year median of 27.81. 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 $98.76, compared to a current price of $103.16 — trading 4.5% above its estimated fair value. The current Gross Margin % is 20.08%, which is 28% below median its 10-year median of 27.81 and 56.1% below the Restaurants industry median of 45.71. Starbucks' overall GF Score™ is 81/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Starbucks (SBUX), the current Gross Margin % is 20.08% 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 $103.16 is trading 4.5% above its estimated GF Value™ of $98.76.
GuruFocus considers Starbucks to be Fairly Valued.
Key valuation signals for SBUX:
Gross Margin %: 20.08% (28% below median its 10-year median of 27.81)
GF Value™: $98.76 vs. price of $103.16 (4.5% above fair value)
Industry Position: 56.1% below the Restaurants median (#301 of 359)
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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