Starbucks Corp
NASDAQ:SBUX

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Starbucks Corp
NASDAQ:SBUX
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Price: 84.4 USD 0.51% Market Closed
Market Cap: 95.9B USD

FCF Margin
Free Cash Flow Margin

7.6%
Current
9%
Average
5.9%
Industry

FCF Margin measures the amount of cash generated by a firm as a proportion of revenue. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

FCF Margin
7.6%
=
Free Cash Flow
2.8B
/
Revenue
36.3B

FCF Margin Across Competitors

Starbucks Corp
Glance View

Economic Moat
None
Market Cap
95.9B USD
Industry
Hotels, Restaurants & Leisure

In the bustling heart of Seattle in 1971, Starbucks Corp. brewed its first cup, initially focusing on selling high-quality coffee beans and equipment. The seeds of its transformation were sown with the entry of Howard Schultz in 1982, who saw the potential to recreate the coffee culture he experienced in Italy. Under Schultz’s visionary leadership, the company shifted its business model to become a haven for social interaction, transforming the typical American café experience. Starbucks established itself as a purveyor of premium coffee beverages, continuously refining its menu to include an array of offerings such as espresso-based drinks, teas, and recently, innovative cold brews that attract a diverse clientele. As the company's footprint expanded globally, it maintained a consistent brand aura—offering not just coffee but a community experience, a 'third place' between home and work. Starbucks meticulously crafts its revenue model through a combination of in-store sales, a robust loyalty program, and strategic partnerships, ensuring profitability. The core engine driving its revenues is its chain of company-operated stores, which generate the lion's share of income by engaging customers with both the ambiance of its cafés and the quality of its products. Complementing in-store sales are licensed stores, merchandise sales, and the ever-popular Starbucks Card, which encourages frequent visits and cultivates customer loyalty. The company also leverages strategic alliances, such as with Nestlé, allowing for broader distribution of Starbucks-branded products in grocery aisles worldwide. By balancing its traditional café culture with a shrewd approach to market expansion and product diversification, Starbucks ensures its place as a dominant force in the global coffee industry.

SBUX Intrinsic Value
82.02 USD
Overvaluation 3%
Intrinsic Value
Price
What is Free Cash Flow Margin?

FCF Margin measures the amount of cash generated by a firm as a proportion of revenue. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

FCF Margin
7.6%
=
Free Cash Flow
2.8B
/
Revenue
36.3B
What is the FCF Margin of Starbucks Corp?

Based on Starbucks Corp's most recent financial statements, the company has FCF Margin of 7.6%.

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