SBUXCAUTIOUS

SBUX Gross Margin Analysis

24.6%

Updated 417h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so 24.6% means SBUX retains roughly a quarter of each sales dollar before other expenses.

Sector Performance

17th percentile

SBUX

24.6%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

20.1%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so 24.6% means SBUX retains roughly a quarter of each sales dollar before other expenses.

That level sits well below the sector median of 46.4%, placing the company in the 17th percentile among its peers. The trend direction for the last 8 quarters is N/A, and the year-over-year change is also N/A; quarter-over-quarter, the metric rose by 22.4% to 24.6% from 20.1% in the prior quarter. The low absolute margin signals a structural cost disadvantage, while the recent QoQ gain offers a narrow offset but does not close the gap to sector norms. For investors, the combination of a weak level and only a single-quarter improvement leaves limited margin for error and points to potential earnings vulnerability. This metric directly supports the overall CAUTIOUS verdict, as the company is operating far below typical peer profitability on sales.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.