Is STARBUCKS CORP (SBUX) Halal?

NASDAQ Consumer Cyclical United States $98.9B
✓ HALAL
Confidence: 95/100
STARBUCKS CORP (SBUX) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 23.6% against the AAOIFI threshold of 30%, STARBUCKS CORP comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Restaurants), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 23.6%
/ 30%
3.1%
/ 30%
1.1%
/ 30%
0.3%
/ 5%
✓ HALAL
DJIM 23.6%
/ 33%
3.1%
/ 33%
1.1%
/ 33%
0.3%
/ 5%
✓ HALAL
MSCI 83.1%
/ 33%
10.8%
/ 33%
4.0%
/ 33%
0.3%
/ 5%
✗ NOT HALAL
S&P 23.6%
/ 33%
3.1%
/ 33%
1.1%
/ 33%
0.3%
/ 5%
✓ HALAL
FTSE 83.1%
/ 33%
10.8%
/ 33%
4.0%
/ 50%
0.3%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
72.3
Forward: 29.4
EPS
$1.20
Dividend Yield
286.0%
Payout: 204.2%
P/B Ratio
-11.8
EV/EBITDA
22.8
EV: $120.8B
Revenue
$37.2B
Growth: 5.5%
Beta
0.9
Average volatility
Current Ratio
1.0

Profitability

Gross Margin 22.2%
Operating Margin 9.3%
Net Margin 3.6%
Return on Assets (ROA) 6.9%

Cash Flow & Balance Sheet

Operating Cash Flow$4.7B
Free Cash Flow$2.4B
Total Debt$26.6B
Current Ratio1.0
Total Assets$32.0B

Price & Trading

Last Close$91.22
50-Day MA$95.97
200-Day MA$89.63
Avg Volume9.2M
Beta0.9
52-Week Range
$75.50
$104.82

About STARBUCKS CORP (SBUX)

CEO
Mr. Brian R. Niccol
Employees
381,000
Sector
Consumer Cyclical
Industry
Restaurants
Country
United States
Exchange
NASDAQ
Market Cap
$98.9B
Currency
USD

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, and Starbucks Reserve brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Purification Calculator

As a halal stock with 0.30% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

Related Halal Stocks in Consumer Cyclical

Frequently Asked Questions

Is STARBUCKS CORP (SBUX) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), STARBUCKS CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is STARBUCKS CORP's debt ratio?

STARBUCKS CORP's debt ratio is 23.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 83.1%.

Does STARBUCKS CORP require dividend purification?

Yes, STARBUCKS CORP has an impermissible income ratio of 0.30%, which means 0.30% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are STARBUCKS CORP's key financial metrics?

STARBUCKS CORP has a market capitalization of $98.9B, trailing P/E ratio of 72.3, and revenue of $37.2B. The company maintains a gross margin of 22.2% and a net margin of 3.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.