SBUXCAUTIOUS

Gross Margin

20.1%

Updated 340h ago

Sector Performance

14th percentile

SBUX

20.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods.

SBUX’s current gross margin of 20.1% means it retains only about 20 cents from every dollar of sales after covering those costs. This figure sits well below the sector median of 43.9%, placing SBUX in the 15th percentile among its peers. The year-over-year change, quarter-over-quarter change, and 8-quarter trend are all marked as N/A, so no directional information is available. The combination of a low gross margin with no trend data suggests elevated risk, as the company is already far less profitable per sale than its competitors without any recent performance context. This metric directly supports the overall CAUTIOUS verdict, since a bottom-quartile margin signals potential cost structure or pricing challenges that warrant caution.

Frequently Asked Questions

What does the Gross Margin tell investors about SBUX?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are SBUX's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.