Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground 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, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Starbucks Corporation

Investors in Starbucks Corp. (Symbol: SBUX) saw new options become available today, for the January 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SBUX options chain for the new January 2026 contracts and identified one put and one call contract of particular interest.
The put contract at the $74.00 strike price has a current bid of 50 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $74.00, but will also collect the premium, putting the cost basis of the shares at $73.50 (before broker commissions). To an investor already interested in purchasing shares of SBUX, that could represent an attractive alternative to paying $84.53/share today.
Because the $74.00 strike represents an approximate 12% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 79%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.68% return on the cash commitment, or 4.93% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Starbucks Corp., and highlighting in green where the $74.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $85.00 strike price has a current bid of $2.61. If an investor was to purchase shares of SBUX stock at the current price level of $84.53/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $85.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.64% if the stock gets called away at the January 2026 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SBUX shares really soar, which is why looking at the trailing twelve month trading history for Starbucks Corp., as well as studying the business fundamentals becomes important. Below is a chart showing SBUX's trailing twelve month trading history, with the $85.00 strike highlighted in red:
Considering the fact that the $85.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 50%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.09% boost of extra return to the investor, or 22.54% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 48%, while the implied volatility in the call contract example is 40%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $84.53) to be 34%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
MUSA Historical Stock Prices
ASUR Stock Predictions
STRS Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting SBUX Put And Call Options For January 2026

Market Volatility and Opportunities

Chipotle Mexican Grill, Inc. CMG is entering 2026 with a heightened focus on digital execution as management seeks to stabilize traffic amid a softer consumer backdrop. Digital sales represented 36.7% of revenue in the third quarter, yet order accuracy in this channel weakened due to incentive structures that overemphasized speed. This misalignment became more consequential as frequency declined among guests earning under $100,000 — a demographic that accounts for roughly 40% of sales and has demonstrated increased sensitivity to budget pressures and discretionary spending.
To address this, Chipotle is restructuring its digital performance framework around three core metrics: accurate orders, on-time fulfillment and abundant quality. Management emphasized that while restaurant-level execution continued to improve, digital order preparation lagged and ultimately weighed on repeat usage. The company pointed to the effectiveness of past engagement initiatives such as Chipotle IQ, Summer of Extras and Freepotle, all of which drove increased activity when the digital experience remained reliable. As Chipotle prepares to roll out a more robust cadence of menu innovations in 2026, improving digital accuracy is positioned as a foundational requirement to fully leverage these programs.
This refined digital strategy is part of a broader shift toward more measured, data-driven operational adjustments. Management stated that changes to digital workflows and incentive structures will be tested within smaller restaurant groups before broader deployment, allowing the company to assess consumer response and refine processes in real time. This approach mirrors Chipotle’s ongoing investments in throughput, kitchen efficiency and menu expansion, each aimed at reinforcing value, consistency and guest satisfaction during a period marked by uneven consumer demand.
Looking ahead, the company views a stronger, more reliable digital ecosystem as a crucial lever for re-engaging light users and improving overall frequency. With menu innovation accelerating and customer expectations rising in off-premise channels, Chipotle’s recalibration of its digital framework represents a proactive move to support demand health in a challenging environment. By tightening execution and aligning incentives with customer priorities, the brand is positioning its digital channel to play a more meaningful role in its 2026 growth agenda.
How Are Competitors Faring?
As Chipotle works to rebuild digital accuracy and strengthen app engagement, competitors like McDonald's Corporation MCD and Starbucks Corporation SBUX are leaning on digital reliability and high-visibility engagement engines to sustain momentum in a value-conscious consumer landscape.
McDonald’s is driving digital traffic through national value and large-scale promotions, with management noting that Extra Value Meals now account for roughly 30% of U.S. transactions and the fully digital MONOPOLY event stands as one of its strongest customer-acquisition drivers. With 45 million 90-day active users, McDonald’s is using value-led bundles and app-based promotions to re-engage price-sensitive guests — a cohort Chipotle has seen soften. This combination of digital scale and sharpened value positioning is helping McDonald’s protect traffic despite a cautious consumer backdrop.
Starbucks, meanwhile, is pushing operational consistency as its digital differentiator, highlighting that over 80% of U.S. stores now hit 4-minute service times following the rollout of Green Apron Service and Smart Queue sequencing. Management also emphasized that Mobile Order & Pay remains highly accurate and on time, supporting nearly 30% year-over-year growth in delivery and expanding its 34.2 million 90-day active Rewards base. By prioritizing precision, throughput and fulfillment speed, Starbucks has rebuilt credibility in a channel where reliability directly influences repeat behavior.
Together, McDonald’s and Starbucks demonstrate how operational discipline and digital dependability can reinforce engagement during a soft consumer cycle — a playbook Chipotle is now moving to replicate as it tightens accuracy and rebuilds frequency heading into 2026.
CMG’s Stock Price Performance, Valuation & Estimates
Shares of Chipotle have plunged 47.9% in the past year compared with the industry’s fall of 13.2%.
CMG One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CMG trades at a forward price-to-sales (P/S) multiple of 3.42, above the industry’s average of 3.22.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CMG’s 2026 earnings implies a year-over-year uptick of 4.7%. The earnings per share estimates for 2026 have declined in the past 60 days.
Image Source: Zacks Investment Research
CMG stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Will CMG's App Engagement Efforts Boost Frequency Heading Into 2026?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in DigitalOcean Holdings Inc (Symbol: DOCN), where a total of 8,972 contracts have traded so far, representing approximately 897,200 underlying shares. That amounts to about 44.3% of DOCN's average daily trading volume over the past month of 2.0 million shares. Particularly high volume was seen for the $53 strike call option expiring December 12, 2025, with 4,340 contracts trading so far today, representing approximately 434,000 underlying shares of DOCN. Below is a chart showing DOCN's trailing twelve month trading history, with the $53 strike highlighted in orange:
Starbucks Corp. (Symbol: SBUX) saw options trading volume of 39,622 contracts, representing approximately 4.0 million underlying shares or approximately 42.7% of SBUX's average daily trading volume over the past month, of 9.3 million shares. Particularly high volume was seen for the $80 strike put option expiring January 16, 2026, with 3,681 contracts trading so far today, representing approximately 368,100 underlying shares of SBUX. Below is a chart showing SBUX's trailing twelve month trading history, with the $80 strike highlighted in orange:
And Capital One Financial Corp (Symbol: COF) options are showing a volume of 16,343 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 40.6% of COF's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $200 strike put option expiring March 20, 2026, with 2,969 contracts trading so far today, representing approximately 296,900 underlying shares of COF. Below is a chart showing COF's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for DOCN options, SBUX options, or COF options, visit StockOptionsChannel.com.
Also see:
Cheap Growth Stocks
Institutional Holders of VVAD
Funds Holding EGIF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: DOCN, SBUX, COF

Dave & Buster’s Entertainment, Inc. PLAY is scheduled to report third-quarter fiscal 2024 results on Dec. 10, 2024, after market close. In the last reported quarter, the company posted an earnings surprise of 28.7%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
PLAY’s Q3 Expectations
The Zacks Consensus Estimate for the fiscal third-quarter bottom line is pegged at a loss of 42 cents per share. In the prior-year quarter, the company reported earnings per share (EPS) of 1 cent.
For revenues, the consensus mark is pegged at $459.9 million. The metric suggests a decline of 1.5% from the year-ago quarter’s figure.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors to Note Ahead of PLAY’s Q3 Release
Dave & Buster's fiscal third-quarter operations are likely to have navigated through volatility arising from calendar shifts, leading to fluctuations in guest visits and overall sales patterns. This and the challenging consumer environment are likely to have affected same-store sales performance in the fiscal third quarter. Our model predicts fiscal third quarter comps to fall 5% year over year.
Although the company has improved its pricing strategies and food and beverage offerings, ongoing pricing testing and focus on premium drinks might push away cost-conscious customers. In a period of tight discretionary spending, raising prices on games and food could hurt guest traffic in the fiscal third quarter. Our model predicts fiscal first-quarter F&B revenues to fall 1.8% year over year to $161.9 million.
Increased operating expenses are likely to have impacted the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses will rise 2.2% year over year to $458.3 million in the fiscal third quarter.
Local store activations and value-driven promotions tied to the fall football season are expected to have aided top-line trends. This and a focus on disciplined new store growth strategy, remodeled locations and a positive reception of the new menu items are likely to have aided the company’s performance in the fiscal third quarter.
What Our Model Says About PLAY Stock
Our proven model does not conclusively predict an earnings beat for Dave & Buster's this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
PLAY’s Earnings ESP: Dave & Buster’s has an Earnings ESP of -12.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PLAY’s Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Yum China Holdings, Inc. YUMC currently has an Earnings ESP of +2.40% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
YUMC’s earnings for the to-be-reported quarter are expected to increase 24%. It reported better-than-expected earnings in each of the trailing four quarters, with an average earnings surprise of 32.5%.
CAVA Group, Inc. CAVA has an Earnings ESP of +11.36% and a Zacks Rank of 2 at present.
CAVA’s earnings for the to-be-reported quarter are expected to increase 200%. It reported better-than-expected earnings in each of the trailing four quarters, with an average earnings surprise of 91.8%.
Chipotle Mexican Grill, Inc. CMG has an Earnings ESP of +3.19% and currently carries a Zacks Rank of 3.
CMG’s earnings for the to-be-reported quarter are expected to increase 14.3%. It reported better-than-expected earnings in each of the trailing four quarters, with an average earnings surprise of 9.8%.
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Dave & Buster's to Report Q3 Earnings: What's in the Cards?

McDonald’s Corporation MCD is sharpening its focus on beverages as a potential catalyst for a stronger U.S. performance in 2026. The category presents a compelling opportunity because beverages carry attractive margins, drive incremental traffic and fit naturally into multiple dayparts. With the company looking for new levers to boost U.S. momentum amid a more cautious consumer, this strategic lane is emerging at the right time. The ongoing beverage test is designed not as a branding exercise, but as a structural growth initiative aligned with evolving consumer preferences for cold coffees, refreshers, crafted sodas and functional drink options.
In the third quarter of 2025, the company highlighted beverages as a global category exceeding $100 billion and expanding faster than the broader informal eating-out industry. This context underscores why the U.S. test across more than 500 restaurants in Colorado and Wisconsin matters. Early performance is running ahead of expectations, supported by strong customer satisfaction scores, incremental occasions across dayparts and a lift in average check — all indicators that the platform can scale effectively within existing operations. The company noted that learnings from the CosMc’s format helped refine product lineup and complexity, enabling a broader beverage range without straining kitchen efficiency.
Although the consumer environment remains pressured, U.S. comparable sales increased 2.4% in the third quarter. With traffic from lower-income customers under strain and inflation, particularly beef inflation, remaining elevated, the U.S. business will require new growth drivers to reaccelerate into 2026. A successfully executed beverage platform offers a pathway to unlock incremental traffic without heavy reliance on pricing actions.
The company is also emphasizing disciplined pricing within the beverage test, aiming to differentiate through value relative to competing drink-led concepts while still supporting margins. If these results continue to hold, the beverage initiative could strengthen the company’s growth algorithm by broadening its relevance, deepening digital engagement and supporting higher unit economics. As the U.S. business navigates a complex backdrop, beverages may become a meaningful lever in reigniting momentum heading into 2026.
MCD Stock’s Price Performance, Valuation & Estimates
Shares of McDonald's have gained 6.4% so far this year against the industry’s decline of 10%. In the same time frame, other industry players like Starbucks Corporation SBUX, Sweetgreen, Inc. SG and Chipotle Mexican Grill, Inc. CMG have lost 6.7%, 78.5% and 43.5%, respectively.
MCD YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 7.82, above the industry’s average of 3.27. Conversely, industry players, such as Starbucks, Sweetgreen and Chipotle, have P/S multiples of 2.48, 1.06 and 3.47, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MCD’s 2026 earnings per share has declined 0.7% in the past 30 days to $13.27.
Image Source: Zacks Investment Research
The company is likely to report strong earnings, with projections indicating a 9.6% rise in 2026. Conversely, industry players like Sweetgreen and Chipotle are likely to witness an increase of 15.5% and 4.9%, respectively, year over year, in 2026 earnings. Meanwhile, Starbucks' fiscal 2026 earnings are likely to witness a rise of 12.7% year over year.
MCD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Will McDonald's Beverage Strategy Reignite Its 2026 U.S. Momentum?

Dutch Bros Inc. BROS is entering its next stage of development with a materially stronger expansion engine, supported by a pipeline that has scaled more quickly than at any point in the company’s history. While same-shop sales and transaction trends continue to shape near-term performance, the depth and velocity of the company’s site approvals are emerging as a central indicator of its medium-term growth capacity.
Over the past six months, Dutch Bros has approved 30-plus potential sites per month, a pace that reflects expanded real estate capabilities, improved planning tools and more structured market evaluation processes. This level of consistency is notable, especially as the company prepares for an accelerated buildout schedule. Management reiterated plans for approximately 175 system shop openings in 2026, positioning Dutch Bros to advance toward its stated long-term target of 2,029 locations by 2029.
Operational execution in new markets continues to support this trajectory. With 38 new shops opened, pushing the system count to 1,081, the company highlighted “consistently long lines and strong customer demand” across the Midwest and Southeast. These markets represent the next wave of geographic expansion and are critical for demonstrating brand portability beyond its legacy footprint.
Still, several variables could influence the growth cadence as the company moves into 2026. Management noted that coffee cost inflation is rising and may remain elevated into next year, with potential implications for shop-level profitability. Labor costs are also set to increase, particularly in California, where regulatory changes are expected to contribute approximately 50 basis points of pressure. In addition, pre-opening expenses have increased as more shops come online in new and developing trade areas where training teams are required.
Even with these pressures, the company’s development posture reflects a more structured, analytics-driven approach to scaling its footprint. A larger and faster-moving pipeline, improved capital efficiency and steady demand across new regions suggest that Dutch Bros is building the operational foundation required to support its targeted pace of expansion.
BROS’ Stock Price Performance, Valuation & Estimates
Shares of Dutch Bros have gained 11.3% so far this year against the industry’s fall of 7%. In the same time frame, other industry players like Starbucks Corporation SBUX, Sweetgreen, Inc. SG and Chipotle Mexican Grill, Inc. CMG have declined 7%, 79.3% and 43.6%, respectively.
BROS YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BROS trades at a forward price-to-sales (P/S) multiple of 4.86, above the industry’s average of 3.50. Meanwhile, industry players, such as Starbucks, Sweetgreen and Chipotle, have P/S multiples of 2.53, 1.03 and 3.46, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BROS’ 2026 earnings per share has remained unchanged at 86 cents in the past 60 days.
Image Source: Zacks Investment Research
The company is likely to report strong earnings, with projections indicating a 27.6% rise in 2026. Industry players like Sweetgreen and Chipotle are likely to witness an increase of 15.5% and 4.9%, respectively, year over year, in 2026 earnings. Meanwhile, Starbucks' 2026 earnings are expected to rise 13.6% year over year.
BROS stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BROS' Expansion Pipeline Surges: Will the Growth Last in 2026?

Key Points
Dutch Bros and Starbucks share more DNA than they seem.
Scaling “broista” enthusiasm nationally will decide whether Dutch Bros compounds or stalls.
Execution will determine the destiny of this up-and-coming food company.
Starbucks turned a simple cup of coffee into a global empire -- a business built on habit, consistency, and scale. But the next great coffee story may look very different.
Enter Dutch Bros (NYSE: BROS), the fast-growing, drive-thru-focused chain from Oregon that's quickly building a loyal following across the U.S. With more than 1,000 shops and plans to reach many more thousands over time, the company's growth story has investors asking a big question:
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Can Dutch Bros follow Starbucks' steady compounding path -- or is it more likely to hit the same growing pains that tripped up Shake Shack?
Two different playbooks
Starbucks built its brand around what founder Howard Schultz called "the third place" -- a warm, social café between home and work. Dutch Bros flipped that idea on its head. Nearly all its shops are drive-thru only, designed for convenience, speed, and connection through cheerful "broistas."
That model gives Dutch Bros a different cost and growth profile. A typical shop costs about $1.7 million to build, likely much cheaper than opening a full Starbucks café, and can pay back within two years. The trade-off is a smaller average unit volume, but faster store-level returns and a nimble expansion model that fits suburban and small-town America.
Culturally, Dutch Bros also plays in a different lane. About 80% of sales come from cold and energy drinks, not hot coffee. Its focus on personalization and upbeat service has turned it into a lifestyle brand for younger consumers -- a demographic Starbucks once dominated but now competes harder to retain.
Where Dutch Bros could follow the Starbucks playbook
The bullish case is straightforward: Dutch Bros still has a huge runway ahead. With 1,043 stores today and a target of 7,000 nationwide, the company's footprint remains heavily concentrated in the western U.S., leaving ample room for expansion eastward.
Same-store sales are growing in the mid-single digits in 2025, a continuation from its 2024 performance. At the same time, shop-level margins near 30% and a consistent profitability since 2024 suggest Dutch Bros is learning to scale efficiently.
That combination -- expanding stores and improving unit economics -- is what turned Starbucks into a compounding machine. If Dutch Bros can maintain its distinctive culture, control costs, and replicate success across markets, it could follow a similar trajectory, albeit on a smaller scale.
There's also upside optionality: The company could one day extend its brand into ready-to-drink products or retail energy beverages, opening new revenue streams beyond the drive-thru.
Where it risks becoming the next Shake Shack
But there's a cautionary side. Shake Shack's early story also dazzled investors -- rapid expansion, a beloved brand, and premium positioning -- before growth exposed cracks in consistency and returns.
Dutch Bros faces similar scaling pressure. Its culture is its moat, but it's also hard to preserve when store count doubles every few years. New regions mean new labor pools and potential dilution of what makes the experience special. Small cracks in service or quality could chip away at the loyalty that drives repeat visits.
Then there's the financial side. Dutch Bros' model is capital-intensive, and while it generates strong shop-level returns, margins remain tight. A 10% increase in labor or ingredient costs could erase much of its 9% net margin. Expanding into new territories also means operating without existing supply chains or brand familiarity, which can raise costs in the short term.
Finally, its heavy reliance on discretionary cold drinks -- rather than habitual morning coffee -- could make revenue more cyclical. In a downturn, consumers might skip energy drinks before giving up their daily caffeine fix.
The path ahead
Dutch Bros likely sits somewhere between Starbucks' long-term compounding story and Shake Shack's post-hype plateau. Like Starbucks, it has a powerful brand and a long runway. Like Shake Shack, it faces the challenges of turning cultural energy into a durable operating scale.
For long-term investors, the opportunity lies in how the next chapter is written. The company's culture gives it an authentic edge -- but the ability to translate that culture into systems, margins, and cash flow will determine whether it becomes a true long-term growth stock.
What does it mean for investors?
Starbucks built an empire through consistency and operating leverage. Shake Shack taught investors how easily that balance can break. Dutch Bros is still writing its story -- and it has the rare chance to learn from both.
Investors should watch three key metrics:
Same-store sales: a pulse check on culture and demand.
Shop-level margins: proof of economic durability.
Sustainable profits: the difference between growth and growth that compounds.
If those trends stay strong, Dutch Bros could be the next Starbucks -- not the next Shake Shack. But until then, it remains a high-energy growth story that demands both patience and scrutiny.
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Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Dutch Bros the Next Starbucks -- or the Next Shake Shack?

Key Points
Krispy Kreme looks cheap for good reasons -- but that could change.
Margins are rising, and refranchising is underway, but profitability remains elusive.
Krispy Kreme's global brand provides a cushion, but execution will ultimately determine whether it becomes a long-term success.
Krispy Kreme (NASDAQ: DNUT) has long been one of America's most recognizable consumer brands. But for investors, it is also a reminder that not every beloved brand translates into a winning stock.
After its 2021 initial public offering (IPO), Krispy Kreme's shares have lost more than half their value, recently falling to $4.40 per share (as of writing), near an all-time low. At first glance, that makes the stock look irresistibly cheap. The company trades at roughly 0.5 times sales, a fraction of what most consumer brands command. But as any seasoned investor knows, a low valuation doesn't always mean a bargain.
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The question is simple: Is Krispy Kreme undervalued, or is it cheap for a reason?
A brand with reach, and a reputation to match
There's no denying the global power of Krispy Kreme's brand. Founded in 1937, the company operates in over 40 countries and sells millions of doughnuts daily. Its nostalgic appeal and emotional connection with customers remain strong, even after decades of ownership changes and financial resets.
For a company with such visibility, its market capitalization of under $800 million seems small. That's less than the valuation of many regional coffee chains, let alone global food-service peers. On the surface, it appears to be a classic small-cap opportunity -- a well-known brand that the market has temporarily overlooked.
But dig deeper, and the valuation reflects something more fundamental: a business model still searching for consistency.
An overview of the key financials
Krispy Kreme generated about $1.6 billion in annual revenue, yet continues to post operating losses. In 2024, the company swung from an operating profit of $13 million to a loss of $9 million. Even in the most recent quarter, ending September 2025, the company remained unprofitable, despite a modest improvement in adjusted EBITDA margin to 10.8%, up from 9.1% in the same quarter a year earlier.
That progress is encouraging, but it also highlights the problem. For a company with global scale, a 10% EBITDA margin is modest at best. Competitors like Starbucks operate at an EBITDA margin above 15%, even as the latter undergoes its own turnaround efforts. In short, Krispy Kreme doesn't yet earn enough on its capital to justify a higher valuation.
This inferior margin explains why the market is skeptical. A price-to-sales ratio of 0.5 looks appealing, but when profits are elusive and returns on invested capital are near zero, even a low multiple can still be expensive.
What are the bulls betting on?
Optimists point to early signs of a real turnaround. Management has been refranchising operations, closing unprofitable outlets, and shifting toward a more capital-light model. The strategy mirrors what other food-service success stories achieved in their transformation phases -- trading ownership for scalability and focusing on high-volume, high-margin distribution points.
There's also the potential for international growth. Krispy Kreme's brand is still underpenetrated in markets like Asia and Latin America, where premium Western dessert brands remain in high demand. If the company can replicate its U.S. awareness abroad, it could achieve steady mid-single-digit revenue growth, accompanied by rising margins over time.
For the bulls, Krispy Kreme appears to be a low-expectations turnaround story with significant upside if execution continues to improve.
Why aren't the bears convinced?
Skeptics counter that Krispy Kreme has been here before. The company has attempted multiple restructurings over the past two decades, each promising efficiency, growth, and margin expansion; yet none have delivered sustainable profitability.
Its "hub-and-spoke" distribution model, while innovative, remains capital-heavy and operationally complex. Each regional hub must maintain enough volume to justify its costs. On the one hand, the food company is closing down unprofitable stores, yet at the same time, it's losing operating leverage. Striking a balance here is a challenging task.
There's also the issue of execution risk. The company's partnership with McDonald's USA, once touted as a national growth engine, was terminated in 2025 after only a few months due to unprofitable unit economics. For bears, that episode encapsulates Krispy Kreme's challenge: scale is easy; profitable scale is not.
What does it mean for investors?
So, does Krispy Kreme stock look cheap? Yes, but only if the turnaround succeeds.
At current prices, the market is clearly pricing in pessimism. If margins climb meaningfully and international growth accelerates, the stock could offer multibagger potential from a small base. But if profits remain inconsistent or the business model fails to scale, "cheap" could quickly become "cheap for a reason."
For investors, the trade-off is simple: Krispy Kreme offers brand-driven upside and execution-driven risk.
It's potentially a high-return stock, but that too comes with a commensurate risk profile.
Should you invest $1,000 in Krispy Kreme right now?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Krispy Kreme Stock Looks Cheap -- or Does It?

Starbucks Corporation SBUX is betting big on its revamped Green Apron Service to restore customer connection and drive transaction growth after several soft quarters. The initiative, rolled out across the full U.S. company-operated portfolio in August, makes staffing and service quality a top priority.
Management increased labor hours, expanded rosters and pushed earlier store openings to ensure more hands are available during high-demand periods. Early results are promising, improved customer experience scores and record low turnover signal stronger partner engagement.
Execution improvements are also translating to better throughput. More than 80% of U.S. company-operated stores are now achieving café service times of four minutes or less, aided by the new Smart Queue sequencing algorithm. September marked an important milestone: positive U.S. sales comps led by transactions, the first such uptick in months. The company believes consistency is the key, customers must feel the difference on every visit for momentum to sustain.
Management acknowledges the ramp will take time. The first 650 pilot stores continue to outperform the broader system, reinforcing the view that customer familiarity with better service will accelerate results. Starbucks also sees the initiative as both a defensive fix and an offensive weapon, positioning the brand to compete more effectively across café, mobile and drive-thru channels, all areas where frequency remains high.
The focus now is clear: win the morning and earn the afternoon through better staffing and operational discipline. While labor investments continue to weigh on margins, Starbucks expects traffic-led growth to drive long-term profit recovery. With Green Apron now standard and holiday season traffic building, investors will be watching whether these operational enhancements deliver sustained U.S. comparable sales growth in 2026.
How Competitors Are Responding to Service-Led Traffic Strategies
Starbucks’ intensified push behind staffing and in-store service places direct pressure on competitors pursuing similar traffic-recovery strategies. Dutch Bros Inc. BROS continues to expand its predominantly drive-thru model, leveraging speedy service and personalized interactions as differentiators. With compact store formats and lower labor needs, BROS prioritizes throughput efficiency and youth-focused menu innovation. However, without Starbucks’ large café footprint or deeper service investments, Dutch Bros competes more on speed than experiential engagement, which positions it differently as the former leans into human connection inside the store.
Restaurant Brands International QSR, parent of Tim Hortons, is another relevant competitor advancing operational upgrades. Tim Hortons has been investing in equipment improvements, digital ordering functionality and targeted staffing efficiencies to sharpen speed and boost guest satisfaction across morning dayparts. Its emphasis on value pricing and convenience makes Tim Hortons a formidable rival, particularly as Starbucks looks to “win the morning” with enhanced service and connection.
Ultimately, competitors are choosing efficiency and value, while Starbucks is doubling down on service-led premium experience, a strategic divergence that will determine traffic leadership in 2026.
SBUX’s Price Performance, Valuation & Estimates
Shares of Starbucks have gained 0.8% in the past six months against the industry’s decline of 6.7%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Starbucks trades at a forward price-to-sales ratio of 2.53, below the industry’s average of 3.5.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 and 2027 EPS implies a gain of 13.6% and 25.6%, respectively, year over year. The EPS estimates for fiscal 2026 and 2027 have declined in the past 30 days.
Image Source: Zacks Investment Research
Starbucks currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence		—
Support		—
Cash flows		—

	S/L 5%RUB 88.04	S/L 10%RUB 92.24	S/L 15%RUB 96.43
Day	4.26%	0.00%	0.00%
Week	36.44%	4.44%	0.22%
Month	65.81%	32.66%	13.48%

Starbucks Corporation

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