StarbucksSBUX +0.85%81 5-Year Yield-on-Cost % is 3.53 as of Jul. 05, 2026, which is 21% above its 10-year median of 2.92. GuruFocus rates SBUX with a GF Score™ of 81/100 and a GF Value™ of $98.67 (Fairly Valued). The stock has 8 warning signs investors should review. Among 188 Restaurants companies, Starbucks ranks better than 61.7% on this metric.
Starbucks's yield on cost for the quarter that ended in Mar. 2026 was 3.53.
The historical rank and industry rank for Starbucks's 5-Year Yield-on-Cost % or its related term are showing as below:
SBUX'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.95 Med: 2.92 Max: 4.63
Current: 3.53
During the past 13 years, Starbucks's highest Yield on Cost was 4.63. The lowest was 1.95. And the median was 2.92.
SBUX's 5-Year Yield-on-Cost % is ranked better than 61.7% of 188
companies
in the Restaurants industry
Industry Median: 2.75
vs SBUX: 3.53
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Starbucks 5-Year Yield-on-Cost % Related Terms
SBUX vs MCD, YUM, CMG: 5-Year Yield-on-Cost % Comparison
For the Restaurants subindustry, Starbucks's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Starbucks's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Starbucks's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Starbucks is calculated as
Starbucks (SBUX) has a 5-Year Yield-on-Cost % of 3.53 as of Jul. 05, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Starbucks and its competitors. This is 21% above median its historical median of 2.92. Over the past decade, Starbucks' 5-Year Yield-on-Cost % has ranged from 1.95 to 4.63. According to the industry distribution chart, Starbucks ranks #72 out of 188 companies in the Restaurants industry, placing it in the top 38.3%.
Is Starbucks' 5-Year Yield-on-Cost % too high?
Starbucks' current 5-Year Yield-on-Cost % of 3.53 is 21% above median its 10-year median of 2.92. Over the past 10 years, this metric has ranged from a low of 1.95 to a high of 4.63. The Restaurants industry median 5-Year Yield-on-Cost % is 2.75. Starbucks' value of 3.53 is 28.4% above this industry median. Based on the distribution chart, Starbucks ranks #72 out of 188 companies in the Restaurants industry, which is above 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' 5-Year Yield-on-Cost % compare to MCD and YUM?
According to the Restaurants industry distribution chart, Starbucks ranks #72 out of 188 companies for 5-Year Yield-on-Cost %. This puts Starbucks in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 2.75. Starbucks' value of 3.53 is 28.4% above this benchmark. Historically, Starbucks' own 5-Year Yield-on-Cost % has ranged from 1.95 to 4.63 over the past decade. While the company's 10-year median is 2.92 vs. the industry median of 2.75, 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 5-Year Yield-on-Cost % for a Restaurants company?
The median 5-Year Yield-on-Cost % among Restaurants companies is 2.75, based on 188 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Starbucks's current 5-Year Yield-on-Cost % of 3.53 is 28.4% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Starbucks and its competitors. For the Restaurants industry, the median 5-Year Yield-on-Cost % is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Starbucks's current 5-Year Yield-on-Cost % is 3.53, which is 21% above median its own 10-year median of 2.92. 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 $98.67, compared to a current price of $104.27 — trading 5.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.53, which is 21% above median its 10-year median of 2.92 and 28.4% above the Restaurants industry median of 2.75. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Starbucks (SBUX), the current 5-Year Yield-on-Cost % is 3.53 as of Jul. 05, 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 $104.27 is trading 5.7% above its estimated GF Value™ of $98.67.
GuruFocus considers Starbucks to be Fairly Valued.
Key valuation signals for SBUX:
5-Year Yield-on-Cost %: 3.53 (21% above median its 10-year median of 2.92)
GF Value™: $98.67 vs. price of $104.27 (5.7% above fair value)
Industry Position: 28.4% above the Restaurants median (#72 of 188)
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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