Starbucks Corporation
SBUX Consumer Cyclical Restaurants
Starbucks Corporation’s revenue for fiscal 2025 (year ended September 2025) was $37.2 billion, up 2.79% from fiscal 2024. In the quarter to June 2026, revenue fell 1.41%, EPS grew 85.7%, free cash flow grew 211.0% and total debt fell 23.3%, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; dividend growth for ten consecutive years, revenue growth for five; insiders bought in the last twelve months.
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Starbucks Corporation (SBUX) Altman Z-score
Starbucks Corporation's Altman Z-score for fiscal 2025 is 2.43, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.43 | (0.59) |
| FY2024 | 3.02 | (0.11) |
| FY2023 | 3.13 | 0.36 |
| FY2022 | 2.77 | (0.57) |
| FY2021 | 3.34 | 1.09 |
| FY2020 | 2.25 | (1.92) |
| FY2019 | 4.17 | 0.14 |
| FY2018 | 4.03 | (4.35) |
| FY2017 | 8.38 | (0.34) |
| FY2016 | 8.73 | (2.21) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.09) | — | −0.11 | |
| Retained earnings / total assets | (0.26) | — | −0.36 | |
| EBIT / total assets | 0.09 | — | 0.30 | |
| Market value of equity / total liabilities | 2.40 | — | 1.44 | |
| Sales / total assets | 1.16 | — | 1.16 | |
| Altman Z-score | Grey zone | 2.43 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −1.02 | ||
Z and Z″ put Starbucks Corporation in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CMG Chipotle Mexican Grill, Inc. compare | 7.0× |
| TXRH Texas Roadhouse, Inc. compare | 5.7× |
| MCD McDonald's Corporation compare | 4.9× |
| YUMC Yum China compare | 4.0× |
| DPZ Domino's Pizza Inc compare | 3.3× |
| DRI Darden Restaurants, Inc. compare | 2.6× |
| YUM Yum! Brands, Inc. compare | 2.5× |
| SBUX Starbucks Corporation | 2.4× |
| QSR Restaurant Brands International Inc. compare | 1.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on SBUX
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement