Could Buying Starbucks Stock Today Set You Up for Life?

Starbucks (NASDAQ: SBUX) needs no introduction. With its 41,118 total locations (as of Dec. 28, 2025), it dominates the retail coffeehouse market. Getting to such a commanding position has benefited investors. Shares have produced a total return of more than 40,000% since their initial public offering in 1992 (as of March 13).

The business hasn't been operating at its best in recent years, resulting in a trailing-five-year price decline of 8% for this consumer discretionary stock. The company's storied success still deserves a closer look from investors.

Can buying Starbucks today set you up for life?

Image source: Starbucks.

Starbucks' powerful brand allows it to better deal with challenges

When it comes to consumers on a global stage, there aren't many businesses and logos that are as recognizable as Starbucks. The brand is Starbucks' most valuable asset, making up its economic moat. It's precisely what has allowed the company to stay relevant for such a long time. And it should support Starbucks' staying power far into the future.

That brand buys the management team time to turn things around. Under well-regarded CEO Brian Niccol, Starbucks has implemented notable changes to its operations in an effort to win back customers that were turned off by a deteriorating experience. Niccol's "Back to Starbucks" plan has focused on improving staffing, simplifying the menu, and making the stores feel more welcoming, factors that were lost on consumers in recent years.

"It is clear from our top line results that our Back to Starbucks plan is working, and our turnaround is taking hold," Niccol said on the first-quarter 2026 earnings call. Revenue increased 6% year over year last quarter, while same-store sales were up 4%. Starbucks' operations are starting to stabilize, as traffic to its restaurants finally returned to growth.

What kind of returns can investors expect?

Starbucks may have generated a monster total return in the past as it scaled up its operations. However, investors expecting a similar performance in the future need to think again. This is a very mature business in 2026. Naturally, its growth potential going forward doesn't even remotely resemble the opportunities it had historically.

Adding to the bearish conversation, investors must also look at the valuation. Sell-side analysts believe adjusted earnings per share will rise from $2.13 in fiscal 2025 to $3.62 in fiscal 2028. Based on the current share price of $99.88, this stock trades at 27.6 times that projected bottom-line figure. This is not an attractive valuation.

Starbucks isn't going to set investors up for life. And it doesn't appear to be a smart buying opportunity right now.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.