Starbucks

Methodology

Starbucks' company-operated store model generates relatively predictable earnings from brand strength and unit economics, though comparable-store sales can fluctuate with competition and consumer trends. International expansion and loyalty program provide visibility. The calculation works reasonably well when normalizing for market-specific challenges and focusing on unit growth plus same-store sales drivers.

Methodology

Starbucks typically trades at premium PEG ratios reflecting brand strength, global expansion potential, and loyalty program economics. Recent execution challenges in key markets have compressed valuations. Compare to Starbucks' historical range and consider turnaround progress in China and U.S. operations rather than just current growth rates.

Methodology

Starbucks offers a meaningful dividend with consistent growth reflecting the mature U.S. business and strong cash generation. The dividend adds value to total returns for this global coffeehouse leader. PEGY better captures why investors value Starbucks for combining international growth opportunities with reliable dividend income from the established base.