Starbucks (SBUX) – Starbucks Stock Prediction 2024, 2027, 2030, 2040

What is Starbucks (SBUX) stock prediction? 

According to our Al stock price forecaster at FinTechBrains, the recent long-term Starbucks stock prediction predicts prices may linger between $72 – $102 in 2024, $158.62 in 2025, $167.05 in 2026, and leap further to $200.59 by the end of 2030 while making its all-time high of $242.21 in 2035 and $283 in 2040.

What does Starbucks (SBUX) exactly do? 

Starbucks is in the food and restaurant industry, serving coffee, tea, ready-to-drink beverages, food, pastries, a breakfast menu, and other beverages at its 38,038 stores globally. Starbucks, along with its few other subsidiaries, is majorly known for selling and marketing coffee items such as roasted beans and ground coffee, which contribute exceptionally to Starbucks’ earnings. They have been trying to expand their services into the grocery industry now. 

Their famous products can be found under Ethos, Starbucks Coffee, Starbucks Reserve, Teavana, Seattle’s Best Coffee, and Princi brands. 

What is Starbucks Stock price history and Starbucks price chart? | Starbucks stock price last 10 years 

Starbucks stock 10-year long-term Forecast | Where will Starbucks stock be in 5 years? 

Starbucks Short-term Stock Prediction 

Starbucks stock price before split 

Starbucks Stock Analysis YouTube Video

Starbucks stock prediction 2024

Reasons –

Starbucks has exciting plans for 2024, focusing on growth, technology, and menu updates. Here are the main points:

Technology Investment: The company will invest $1 billion in 2024 to enhance its technology and improve customer service. This includes using AI to personalize customer experiences and streamline operations.

Employee Engagement: Starbucks is launching its first North America Barista Championship, allowing employees to showcase their skills and foster a sense of community

Starbucks stock prediction 2025 

Reasons –

Starbucks has set ambitious goals for 2025 to drive growth and enhance customer experiences. Here’s a simplified overview of their plans:

Store Growth: Starbucks intends to open 2,000 new stores in North America by 2025. This is part of a larger strategy to increase their total global locations to 55,000 by 2030, which translates to approximately 8 new stores each day

Investment in Modernization: The company is allocating $450 million to upgrade existing U.S. locations, aiming to improve store designs that enhance service efficiency and strengthen customer engagement

Starbucks Stock Prediction 2027

Reasons –

Here’s a simplified overview of Starbucks plans in 2027:

Digital Enhancements: The company plans to double its Starbucks Rewards membership from 75 million to 150 million in the next five years. They will improve their digital services through partnerships with tech companies like Microsoft and Apple.​

Focus on International Markets: A significant portion of growth is expected from international markets, particularly in China, where they aim to operate 9,000 stores by 2025. This international strategy will contribute to about one-third of the company’s earnings growth

Starbucks stock prediction 2028

Reasons –

Here’s a simplified summary of Starbucks’ plans for 2028, highlighting their key strategies:

New Store Formats: Starbucks will introduce various store types, such as drive-thru only and double-sided drive-thru, to make ordering more convenient. They also plan to increase their Greener Stores, which are environmentally friendly.

Menu Expansion: The company aims to innovate its menu by adding healthier options and focusing on all-day breakfast items to meet changing customer preferences

Starbucks stock prediction 2029

Reasons –

Starbucks plans to introduce menu options in more ingenious ways by 2029.

More Plant-Based Options: The company plans to offer more plant-based food and drinks to meet the demand for healthier and eco-friendly choices.

LEED Certification: Starbucks is dedicated to constructing new stores that comply with green building standards like LEED (Leadership in Energy and Environmental Design). This focuses on energy efficiency and the use of sustainable materials.

Urban Farming Initiatives: The company is looking into urban farming projects at some store locations, which will let customers see where ingredients come from and support local agriculture.

Starbucks stock prediction 2030 

Reasons –

Starbucks plans to concentrate mostly on being able to achieve 100% planet-friendly operating business by 2030 :

Sustainability Goals: Starbucks aims to become resource-positive by 2030, meaning it intends to give more than it takes from the planet. This includes reducing carbon emissions, conserving water, and minimizing waste throughout its supply chain.

Partnerships with Nonprofits: Starbucks aims to enhance its collaborations with nonprofit organizations to support different social causes and community development initiatives.

Supplier Diversity Programs: The company plans to broaden its supplier diversity efforts by supporting businesses owned by underrepresented groups.

Starbucks stock prediction 2035

Reasons –

One of the key revenue boosters for Starbucks in 2035 would be,

Expansion through Franchising: Starbucks plans to grow its footprint through strategic partnerships and franchising opportunities, especially in emerging markets.

Licensing Agreements: Strengthening licensing agreements to increase brand presence in non-traditional locations, such as airports, hotels, and universities.

Innovative Food Pairings: Investing in R&D to create unique food pairings that complement Starbucks beverages, enhancing the overall customer experience.

Starbucks stock prediction 2040

Reasons –

 In 2040 Starbucks could be into,

Advanced Supply Chain Transparency

Traceability Initiatives: Starbucks wants to make its supply chain more open, allowing customers to see where their products originate. This may involve using blockchain technology to confirm ethical sourcing practices.

Sustainable Packaging: The company plans to enhance its packaging by using materials that can be composted, recycled, or made from renewable resources.

Building Community

Third Place Concept: Starbucks aims to strengthen its “third place” idea, creating spaces that encourage community engagement beyond home and work. This includes hosting events, workshops, and local gatherings in its stores.

Support for Local Artists: The company is looking to partner with local artists and creators to display their work in stores, helping to connect with the community.

Starbucks Stock Prediction through Technical Analysis  

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In our Starbucks stock analysis on a 1-month chart, the price action and supporting volume suggest a bullish trend. This indicates Starbucks stock prices to increase shortly, potentially breaking the Starbucks stock price target of $126.32, the highest price ever recorded.

Starbucks Stock Prediction through Fundamental Analysis 

Starbucks’ financial statements and ratios look solid and are performing well.

The average last 5-year operating performance of Starbucks is 23.2 which clearly states that the company’s operating performance is slightly overestimated and is no doubt a great indication for current investors. 

The average PE ratio of the last 5 years is approximately 24 which claims that the investors in the market are ready to pay 24 times extra for every 1 dollar Starbucks makes in earnings behind 1 share. This means Starbucks stock can still be seen as a good buy for new investors.

Over the last five years, the company has had an average Return on Equity (ROE) of -47% and a Return on Assets (ROA) of 9.4%. This means the company is using its assets to generate decent returns but is struggling to turn shareholders’ investments into profit. Additionally, the negative debt-to-equity ratio over the same period indicates that the company is heavily reliant on debt.

The steady increase in the inventory ratio over the last 5 years shows that the company is selling its products quickly.

The above figures show the traits of an average company. But looking just at financial ratios won’t work. So let us dig further into financial statements. 

The continuous rise in net inventory, sales revenue, and net income says, the company is successfully able to improve earnings year on year by increasing their products in sales. Starbucks has had a positive average cash flow of + 2.9 B USD for the last 5 years now. A free cash flow of $3.83 in June 2024 is no doubt a positive sentiment about Starbucks. 

Starbucks’ financial performance has been steadily improving over the past five years, indicating a slow but steady Starbucks stock price increase in the future.

Is Starbucks stock buy sell or hold? | Conclusion

Fundamentally the company looks alright, though Starbucks stock prices fell since its allegations of the company supporting the Israeli army in 2023. Hence Starbucks looks slightly undervalued and could be a hold for the existing investors as of October 2024. However, the Starbucks stock prediction earnings will keep steadily increasing in the future as well following its history. 

While this could be a good time for the new investors as well to buy Starbucks shares right now. Though the food industry is tough to crack Starbucks is a proven product in the market forming a concrete base for Starbucks stock future. They have always been able to attract customers with their trendy and quirky ways. Customers seem to enjoy their products and selling approach.

Remember, the food and restaurant sectors were hit hard by COVID-19 in 2020, but Starbucks was able to operate effectively and still make a profit. This shows that the company has strong fundamentals and good management.

Frequently Asked Questions | FAQs

Is Starbucks a good stock to buy long-term 

As of October 2024, the estimated value of one Starbucks (SBUX) stock based on a Discounted Cash Flow (DCF) model is $82.48. Since the current market price is $96.09, the stock is considered overvalued by 14%. However, using a different method (Relative Value), the stock’s fair price is estimated at $108.12, meaning it’s undervalued by 11% compared to the market price.

Starbucks is a good long-term investment, but investors should be careful about its low return on equity (ROE) and the higher debt it currently has.

Starbucks stock price after boycott? 

Starbucks stock has been falling since November 2023 due to rumors that the company secretly funded Israeli militants. The news was further fuelled by allegations of the company serving food and supplies to the Israeli militants. So the company faced some serious backslash from the opposing countries resulting in a drop in Starbucks stock prices by 20% since 2023. 

Though Starbucks denied the allegation and has come out in the open saying, that the company promotes products that are open to all religions and countries.