How Parkev Tatevosian, CFA’s view on $SBUX changed

2026-09-27

“Interesting News for Starbucks Stock Investors | SBUX Stock Analysis | BROS Stock”

SBUX is rated neutral; valuation is too high (forward P/E 30, price 93 vs DCF fair value 66) despite positive view on CEO strategy.

We have interesting news for Starbucks stock investors, as the company has announced the closure of an additional 250 stores. And of course, if you've been following my coverage of Starbucks, I've been emphasizing that this is a likely scenario .

I feel that Starbucks suffers from what I, and many economists, call "economies of scale," where its size leads to inefficiency. This happens when a business, or one of its sectors, grows so large that it becomes difficult to manage effectively, and costs begin to rise at a faster rate than sales growth.

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2026-09-01

“Starbucks Stock Investors Have Reason to Cheer | SBUX Stock Analysis”

SBUX fundamentals improving under new CEO but valuation too high (forward P/E 34.6 vs fair value $68); rating is hold/waiting for lower price.

CEO Brian Niccol is working his magic again. After being poached away from Chipotle, Brian Niccol is achieving significant success at Starbucks, accelerating comparable store sales growth to 7.9% in the most recently completed quarter.

At Starbucks, he's already facilitating significant improvement. The stock price is up meaningfully, sales are increasing, 90-day active rewards members are increasing to 36 million, and I like the strategy of slowing down new store development until you get the operations corrected, right?

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