ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Starbucks's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.28%.
As of today (2026-06-24), Starbucks's WACC % is 9.17%. Starbucks's ROC % is 7.34% (calculated using TTM income statement data).
Starbucks earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Starbucks (MEX:SBUX) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Starbucks's WACC % is 9.17%. Starbucks's ROC % is 7.34% (calculated using TTM income statement data).
Starbucks earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Starbucks ROC % Related Terms
Starbucks ROC % Historical Data
* Premium members only.
The historical data trend for Starbucks's ROC % 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:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (MEX:SBUX) has a ROC % of 8.28% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Starbucks and its competitors.
Is Starbucks' ROC % too high?
Starbucks' current ROC % is 8.28%. The Restaurants industry median ROC % is 4.21. Starbucks' value of 8.28% is 96.7% above this industry median. Overall, Starbucks has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Starbucks' ROC % compare to CMG and YUM?
Starbucks' ROC % of 8.28% can be compared against companies in the Restaurants industry. The industry median ROC % is 4.21. Starbucks' value of 8.28% is 96.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Restaurants company?
The median ROC % among Restaurants companies is 4.21, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Starbucks's current ROC % of 8.28% is 96.7% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Starbucks and its competitors. For the Restaurants industry, the median ROC % is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starbucks's current ROC % is 8.28%. 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 (MEX:SBUX) is currently considered Fairly Valued. The stock's GF Value™ is MXN1,707.58, compared to a current price of MXN1,747.00 — trading 2.3% above its estimated fair value. The current ROC % is 8.28% and 96.7% above the Restaurants industry median of 4.21. Starbucks' overall GF Score™ is 72/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Starbucks (MEX:SBUX), the current ROC % is 8.28% 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 (MEX:SBUX) Overvalued in 2026?
Based on GuruFocus' analysis, Starbucks stock appears to be overvalued.
The current stock price of MXN1,747.00 is trading 2.3% above its estimated GF Value™ of MXN1,707.58.
GuruFocus considers Starbucks to be Fairly Valued.
Key valuation signals for MEX:SBUX:
ROC %: 8.28%
GF Value™: MXN1,707.58 vs. price of MXN1,747.00 (2.3% above fair value)
Industry Position: 96.7% above the Restaurants median
No single metric tells the full story. See the MEX: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.
72GF Score
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