StarbucksSBUX -0.36%81 Interest Coverage is 5.86 as of Mar. 2026, which is 41% below its 10-year median of 9.96. 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 262 Restaurants companies, Starbucks ranks worse than 51.15% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Starbucks's
Operating Income
for the
three
months ended in Mar. 2026 was $802 Mil. Starbucks's Interest Expense for the
three
months ended in Mar. 2026 was $-137 Mil.
Starbucks's interest coverage for the quarter that ended in Mar. 2026 was 5.86.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Starbucks's Interest Coverage or its related term are showing as below:
SBUX'
s Interest Coverage Range Over the Past 10 Years
Min: 3.47 Med: 9.96 Max: 47.4
Current: 6.33
SBUX's Interest Coverage is ranked worse than 51.15% of 262
companies
in the Restaurants industry
Industry Median: 6.45
vs SBUX: 6.33
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Starbucks Interest Coverage Related Terms
Starbucks Interest Coverage Historical Data
* Premium members only.
The historical data trend for Starbucks's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
SBUX vs CMG, YUM, MCD: Interest Coverage Comparison
For the Restaurants subindustry, Starbucks's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Starbucks's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Starbucks's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Starbucks (SBUX) has a Interest Coverage of 5.86 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Starbucks and its competitors. This is 41% below median its historical median of 9.96. Over the past decade, Starbucks' Interest Coverage has ranged from 3.47 to 47.40. According to the industry distribution chart, Starbucks ranks #134 out of 262 companies in the Restaurants industry, placing it in the top 51.1%.
Is Starbucks' Interest Coverage too high?
Starbucks' current Interest Coverage of 5.86 is 41% below median its 10-year median of 9.96. Over the past 10 years, this metric has ranged from a low of 3.47 to a high of 47.40. The Restaurants industry median Interest Coverage is 6.45. Starbucks' value of 5.86 is 9.1% below this industry median. Based on the distribution chart, Starbucks ranks #134 out of 262 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' Interest Coverage compare to CMG and YUM?
According to the Restaurants industry distribution chart, Starbucks ranks #134 out of 262 companies for Interest Coverage. This places Starbucks in the lower half of its industry. The industry median Interest Coverage is 6.45. Starbucks' value of 5.86 is 9.1% below this benchmark. Historically, Starbucks' own Interest Coverage has ranged from 3.47 to 47.40 over the past decade. While the company's 10-year median is 9.96 vs. the industry median of 6.45, 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Starbucks's current Interest Coverage of 5.86 is 9.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Starbucks and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starbucks's current Interest Coverage is 5.86, which is 41% below median its own 10-year median of 9.96. 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 Interest Coverage is 5.86, which is 41% below median its 10-year median of 9.96 and 9.1% below the Restaurants industry median of 6.45. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Starbucks (SBUX), the current Interest Coverage is 5.86 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 $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:
Interest Coverage: 5.86 (41% below median its 10-year median of 9.96)
GF Value™: $98.76 vs. price of $103.16 (4.5% above fair value)
Industry Position: 9.1% below the Restaurants median (#134 of 262)
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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