Is Starbucks Stock Underperforming the S&P 500?
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Valued at $98.4 billion by market cap, Starbucks Corporation (SBUX) is the world's largest coffeehouse chain, renowned for transforming coffee consumption into a global lifestyle experience. The company offers a diverse range of products, including handcrafted beverages, premium teas, and a variety of food items.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Starbucks easily fits into this category. Founded in 1971 at Seattle's Pike Place Market, Starbucks has expanded its footprint to over 40,000 stores across 87 countries. The company’s premium product positioning, innovation in beverage offerings, and strong digital ecosystem, including its highly successful loyalty program and mobile ordering, drive high customer engagement, reinforcing its market dominance.
However, its not all sunshine and rainbows for Starbucks as the stock is down 26.3% from its 52-week high of $117.46, achieved on Mar. 3. Shares of Starbucks have slumped 25% over the three months, compared to the S&P 500 Index’s ($SPX) 2.1% rise.
Over the long term, SBUX is down 5.1% on a YTD basis, and the shares are up 5.5% over the past 52 weeks. By contrast, $SPX has gained 1.5% in 2025 and 13% over the past year.
SBUX has been trading below its 50-day moving averages since early March and under its 200-day moving average since early April, indicating a bearish price trend.
On May 16, SBUX shares declined over 1% following a recent CFO meet-and-greet that left analysts seeking more definitive guidance on the timeline for margin improvement. The absence of clear financial direction has intensified concerns amid ongoing operational challenges, including rising labor costs, declining customer traffic, and increased competition.
Its rival, McDonald's Corporation (MCD), has gained 20.3% over the past 52 weeks and is up 7.8% in 2025, far surpassing SBUX.
Despite that, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 31 analysts in coverage, and the mean price target of $88.62 suggests a premium of 2.3% to its current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.