Should I buy Starbucks stock in 2025?

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At HelloSafe, our expert has been monitoring Starbucks’ performance for more than three years. Every month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the most promising investment opportunities. Our analyses are intended for informational purposes only and do not represent investment advice. In line with our ethical guidelines, we have never received, and will never accept, any compensation from Starbucks.

What is Starbucks?

How much is Starbucks stock?

The price of Starbucks stock is rising this week. As of now, SBUX shares are trading at $82.01 USD, up 2.45% over the past 24 hours, but down 2.15% for the week.

A beta of 1.01 signals that Starbucks generally moves in line with the overall market.

With recent changes and ongoing recovery efforts, Canadian investors should prepare for continued share price volatility in the near term.

Our full analysis on Starbucks stock

We have thoroughly reviewed Starbucks Corporation’s latest quarterly financial results, market performance over the last three years, and a comprehensive suite of comparative and technical data. Incorporating cross-validated insights from fundamental benchmarks, technical indicators, market sentiment, and competitive landscape—aggregated with our proprietary algorithmic analysis—we arrive at a multidimensional view of SBUX’s current and forward-looking potential. So, why might Starbucks stock once again become a strategic entry point into the consumer cyclical sector in 2025?

Recent Performance and Market Context

Starbucks has experienced a period of recalibration, both in share price and business fundamentals, that effectively resets expectations and may be laying the groundwork for renewed upside. Although SBUX currently trades at $82.01, marking a decline of roughly 17% over the past six months, it has notably rebounded over 10% on a one-year basis. The stock has shown resilience, weathering a period of underperformance relative to the Consumer Discretionary sector but maintaining a market capitalization just above $93 billion.

Recent market volatility—stemming from macroeconomic uncertainty, changing consumer trends, and sector-specific headwinds—has impacted many quick-service restaurant stocks, but Starbucks stands out for its scale, recognizable brand, and geographic diversification. Notably:

• Intraday gains of +2.45% indicate firming short-term sentiment.
• Despite a slight weekly decline, the stock is holding above key support ($79.69) and has seen its average volume stabilize at an elevated 11.4 million shares per day.

On the macro front, the consumer sector has benefited from moderating inflation and early signs of real wage growth in North America. This bodes well for discretionary spending—historically supportive of premium café experiences like Starbucks. The firm’s strong international growth, particularly in China (9% YoY store count increase), positions Starbucks to harness consumer tailwinds in major emerging markets.

Technical Analysis

While the technical picture for SBUX has been mixed in 2025, important signals suggest the foundation for a bullish reversal is forming:

• Relative Strength Index (RSI, 14-day): 41.3—indicates SBUX remains near the lower boundary of neutral, not yet oversold but poised for upward movement without the risk of near-term exhaustion.
• MACD: -1.8, signaling bottoming momentum but recent improvement suggests lessening downward pressure.
• Stochastic at 63.3: A sign of rising momentum, often preceding recovery in momentum-driven stocks.

Moving averages confirm that SBUX has undergone a rare but significant “death cross” (50-day MA below the 200-day MA), an event often viewed as a contrarian indicator. Historically, such crossovers can precede long-term bottoms in high-quality, blue-chip equities, especially when price consolidates above strong support as SBUX is now doing at ~$80.

• The 20- and 50-day moving averages are converging toward the spot price, indicating a likely inflection zone.
• Sustained closes above short-term moving averages could drive a “golden cross” within the next market cycle.
• Support holds above the critical $79.69 mark, suggesting robust buying interest at these levels.

Taken together, these factors reinforce the view that SBUX may be building a base for renewed outperformance in the latter half of 2025.

Fundamental Analysis

From a fundamental standpoint, Starbucks remains a structurally advantaged leader among global consumer brands. The Q2 FY2025 results, while reflecting near-term pressures, leave significant room for optimism:

• Total net revenue: $8.76 billion (+2% YoY). Revenue growth persisted despite softening US consumer traffic and short-lived volatility in China.
• Earnings: While GAAP EPS came in at $0.34 (down 50% YoY), and non-GAAP EPS at $0.41 (down 40% YoY), the EPS shortfall is primarily attributed to the deliberate ramp-up in turnaround investments—including higher labor spend and targeted restructuring costs.

Notably, the current P/E of 29.82 (forward P/E 28.25) and PEG ratio (implied at ~2.0 based on consensus estimates) are not out of line with high-multiple restaurant peers, given Starbucks’ defensible margins and unique global scale. The price/sales ratio at 2.57 also looks fair relative to the five-year average and remains attractive within high-growth consumer discretionary.

Structural strengths underpinning the investment thesis include:

• Unmatched global brand and store network: Now over 40,789 locations, with international outpacing domestic.
• Product and experience innovation: Upgrades in menu, customer engagement, and store design fueling sticky loyalty.
• Strategic leadership renewal: Brian Niccol’s proven expertise from Chipotle signals a disciplined, execution-focused approach to revitalization.
• Dividend resilience: 60 consecutive quarters of dividend payments, with an impressive 19% CAGR—illustrative of a shareholder-oriented capital allocation policy.

Starbucks has consistently demonstrated its ability to manage challenges, identify new growth vectors (such as ready-to-drink and premium beverage lines), and defend pricing power, all of which argue for a positive fundamental outlook as operational metrics stabilize.

Volume and Liquidity

The robust average daily trading volume (11.4 million shares) is a powerful signal of strong market confidence and institutional participation. This persistent liquidity:

• Enables efficient price discovery and ease of entry/exit for both retail and sophisticated investors.
• Supports dynamic valuation rerating, particularly important as the turnaround narrative progresses and incremental news flow accelerates.

The stock’s sizable free float, combined with a low beta (1.01), enhances its appeal to portfolio managers seeking to balance growth with controlled volatility amid uncertain market conditions.

Catalysts and Positive Outlook

Starbucks is in the early but substantial phase of a large-scale turnaround—the ideal environment for investors seeking mispriced opportunities with clear future catalysts:

• “Back to Starbucks” strategy: A comprehensive refocus on premium coffee quality, in-store experience, and operational excellence, with management targeting efficiency and relevance.
• International expansion: Doubling down in high-growth geographies (notably China, 9% YoY unit increase, and now 7,758 stores), enabling scale-driven margin rebuild and capturing aspirational middle-class consumption.
• Leadership transformation: The new CEO and CFO team combines operational acumen with fresh vision—often a tip-off to pending business acceleration.
• Cost optimization: Ongoing restructuring (notably the reduction of 1,100 support roles) should compress fixed costs and pave the way for margin normalization as revenue reaccelerates.
• Product and channel innovation: Initiatives in digital ordering, new beverage innovation, and expansion of premium cold and plant-based offerings may rejuvenate traffic and boost average ticket size.
• ESG and sustainability: Starbucks’ long-term commitments to ethically sourced products and sustainable supply chain fortify its appeal to both younger consumers and ESG-focused institutional investors.

Externally, stabilizing US inflation, improving labor markets, and a global economic soft landing would further support consumer discretionary, with Starbucks optimally leveraged given its premium positioning and operating leverage.

Investment Strategies

There are compelling arguments to support multiple entry horizons into SBUX:

• Short-term (3–6 months):
• The current share price above key support and technical basing indicates potential for a tactical bounce, especially if upcoming quarterly results or new strategic initiatives exceed revised expectations.
• Volume patterns and moving averages hint at a bottoming process, ideal for traders and active investors seeking mean-reversion upside.
• Medium-term (6–18 months):
• As the “Back to Starbucks” plan translates to improved metrics—especially in margin recovery and global comp sales—SBUX could achieve re-rating toward consensus targets (~$92.73) and beyond.
• The anticipated “golden cross” technical formation would further reinforce positive sentiment, marking a shift from neutral to bullish structure.
• Long-term (18+ months):
• Investors with a multi-year horizon can leverage Starbucks’ unmatched global footprint, dominant brand loyalty, and robust dividend history. Compounding effects from international store expansion, digital engagement, and premiumization position SBUX as a durable compounder with substantial total return potential.
• Strategic patience is likely to be rewarded, with the current valuation providing a rare entry window relative to both historic multiples and forward growth prospects.

Ideal positioning appears to be at or near the current technical lows, ahead of anticipated sequential improvement in earnings and operational KPIs.

Is It the Right Time to Buy Starbucks?

In summary, Starbucks represents a globally dominant brand in the midst of a high-conviction turnaround, backed by resilient revenues, proven management, and durable market positioning. The stock currently trades at an attractive entry point—well-supported by technical and volume indicators, yet still discounted versus historic highs and peer valuations. Near-term headwinds, while not trivial, seem already priced in by the market, whereas upside catalysts are numerous and growing: transformational leadership, renewed operational rigor, global expansion, and compelling dividend growth.

For Canadian and international investors alike, Starbucks seems to represent an excellent opportunity to capture both recovery upside and multiyear compounding potential at a time when the stock’s risk/reward profile appears especially favourable. The fundamentals, technical structure, and strategic catalysts collectively argue that now may be the ideal moment to assign fresh attention and renewed confidence to SBUX as a core holding in globally oriented consumer portfolios.

As the business pivots from transition to acceleration, Starbucks offers a combination of stability, innovation, and growth that may prove to be one of the most attractive opportunities in the consumer sector for the coming year.

How to buy Starbucks stock in Canada?

Buying Starbucks stock online is a straightforward and secure process when you use a regulated broker in Canada. You have two main methods to invest: buying the shares directly for long-term ownership (spot buying), or trading via Contracts for Difference (CFDs), which allow you to speculate on short-term price movements—often with leverage. Each approach offers unique benefits and risks for retail investors. To help you choose the best option for your needs, we provide a detailed broker comparison further down this page.

Spot Buying

A cash (or spot) purchase means you buy actual Starbucks shares (NASDAQ: SBUX) through a brokerage account. You become a shareholder, eligible for dividends and voting rights, and benefit from any long-term growth in the company's value. Major Canadian brokers typically charge a fixed commission per trade—often between $4.95 and $9.99 CAD.

Example with a $1,000 investment

If the Starbucks share price is $82.01 USD (≈ $112.00 CAD at an exchange rate of 1.37), you can buy around 8 shares (8 × $112 = $896), factoring in a $5 CAD commission. The remainder may cover currency conversion and account fees.

✔️ Gain scenario: If the share price increases by 10%, your 8 shares would be worth about $985 ($112 × 1.10 × 8 ≈ $985).

Result: +$89 gross gain, or +10% on your initial investment (not including dividends or FX effects).

Trading via CFD

CFDs (Contracts for Difference) track the price of Starbucks shares but do not grant ownership. Instead, you speculate on price movements—up or down—and can use leverage to magnify your exposure. Instead of a fixed commission, CFD fees usually come as a bid-ask spread, with possible overnight financing charges if you hold positions longer than a day.

Example with a $1,000 stake and 5× leverage

You open a CFD position worth $5,000 in Starbucks shares.

✔️ Gain scenario: If Starbucks stock rises by 8%, your position earns 8% × 5 = 40%.

Result: $400 gain on your $1,000 outlay (before spreads and financing costs).

Final Advice

Before investing, it's crucial to compare brokers’ commissions, currency conversion fees, platform quality, and investor protection. Some brokers are better suited for direct stock purchases while others excel in cost-effective CFD trading. The right method depends on your objectives—steady long-term growth, active trading, or dividend income. To make an informed choice, consult our Canadian broker comparison table just below.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Starbucks stock

The latest news about Starbucks

Starbucks Canada announces launch of a new beverage lineup tailored specifically for Canadian tastes. In the past week, Starbucks Canada introduced several new locally inspired beverages across its stores nationwide, reinforcing its commitment to product innovation tailored to Canadian consumers. The new offerings, including an exclusive Maple Cream cold foam and regionally sourced ingredients, aim to deepen customer engagement and support local suppliers. This initiative has been well received in Canadian media and is expected to drive higher same-store sales in the region during the coming quarters, illustrating Starbucks’ adaptive strategy within Canada’s unique foodservice landscape.

Starbucks maintains steady Canadian expansion with new store openings in major urban centers. The company confirmed the opening of six new stores over the past month across Ontario and British Columbia, focusing on drive-thru and café formats in high-traffic suburban locations. This expansion underscores Starbucks’ confidence in the Canadian market, which remains a stable contributor to its North American results. These new sites, managed through both corporate and licensed partnerships, are expected to further entrench Starbucks’ brand and boost regional revenue streams, demonstrating an ongoing commitment to its footprint north of the border.

Starbucks Canada intensifies sustainability efforts aligned with Canadian regulatory and consumer expectations. Starbucks recently expanded its partnership with Loop and TerraCycle to pilot a reusable cup program in Vancouver and Toronto, addressing rising environmental consciousness among Canadian consumers and new local regulations restricting single-use plastics. The program has garnered positive feedback from municipal authorities and environmental groups, which could foster customer loyalty and enhance Starbucks’ brand value in Canada’s sustainability-minded market. This initiative positions Starbucks as an industry leader in adapting to evolving regulatory frameworks in the country.

Starbucks Canada participates in Indigenous community support and recognition initiatives. During National Indigenous History Month, Starbucks Canada increased its visibility through partnerships supporting Indigenous education and employment, including expanded scholarship funding and recruitment programs aimed at Indigenous youth. These efforts align with broader corporate social responsibility trends in Canada and help differentiate the Starbucks brand in a crowded market, contributing to favorable public perception and strengthening relationships with local communities and government stakeholders.

Steady dividend growth and resilient payout point to Starbucks’ stable position for Canadian investors. Starbucks reported its 60th consecutive quarterly dividend payment and reaffirmed its annual dividend growth, important factors for Canadian investors seeking income stability amid market volatility. With a current dividend yield near 3% and a robust commitment to returning capital to shareholders, Starbucks remains an attractive holding for Canadian portfolios focused on income and long-term brand strength, particularly as the company continues to invest in operational and product innovation across its global and Canadian businesses.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.