Wake Up And Smell The Coffee: Starbucks Appears As A Re-Heated Beverage

Feb. 26, 2025 8:30 AM ETStarbucks Corporation (SBUX) Stock, SBUX:CA StockSBUX, SBUX:CA5 Comments1 Like
Luca Socci
4.45K Followers
(11min)

Summary

  • Amidst several challenges, Starbucks recently announced 1,100 job cuts to improve its efficiency.
  • Despite a recent recovery, Starbucks' valuation is stretched with high PE and EV/EBITDA ratios, making it an expensive stock.
  • The "Back to Starbucks" plan aims to revitalize the brand but may struggle against consumer preferences for to-go sales and delivery services.
  • In this article, I want to go over my case on Starbucks and explain why I am bearish.

BrianAJackson

Labor Unions. Boycotts in the Middle East. Lengthy and frightening wait times to grab a coffee. High prices drive consumers away. Coffee inflation. Stiff competition from local coffee shops. Issues in China. Job cuts.

We could go on, but we all

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About SBUX Stock

SymbolLast Price% Chg
SBUX
115.811.15%
Post115.78-0.03%
Created with Highcharts 11.2.0Feb 24Fe…Feb 25Feb 26Feb 27Feb 28112114116
Market Cap
$130.05B
PE (FWD)
38.72
Yield
2.06%
Rev Growth (YoY)
-1.47%
Short Interest
2.51%
Prev. Close
$114.49
Compare to Peers

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