Starbucks (PFTS:SBUX) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Starbucks Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Starbucks is: No Data: Cannot be evaluated.

Starbucks  (PFTS:SBUX) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Starbucks Risk Assessment Related Terms

PFTS:SBUX vs MCD, CMG, YUM: Risk Assessment Comparison

For the Restaurants subindustry, Starbucks's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Starbucks's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Starbucks's Risk Assessment falls into.


Starbucks Business Description

Address 2401 Utah Avenue South, Seattle, WA, USA, 98134
Starbucks is the world's largest specialty coffee retailer, operating and licensing more than 40,000 stores across some 80 markets. Company-operated stores in North America generate the majority of revenue, complemented by licensed locations in airports, grocery stores, and most international markets; China is its second-largest market, where Starbucks sold a majority stake in its retail operations to Boyu Capital in 2025 while retaining brand ownership and licensing income. Its Starbucks Rewards loyalty program drives a large share of U.S. transactions, and channel development extends the brand into packaged coffee and ready-to-drink beverages through partnerships with Nestlé and PepsiCo. Under its 'Back to Starbucks' turnaround, the company is refocusing on coffeehouse experience and service speed. Founded in Seattle in 1971, Starbucks is headquartered there today.