How to buy Starbucks shares (SBUX)

Starbucks is a mainstay of high streets across the world. Use this guide to learn how the company coped with the pandemic and what its prospects look like for the future.
By: James Knight
James Knight
James is the lead content editor for Invezz, covering the stock market, cryptocurrency, and macroeconomic markets. Outside of work,… read more.
Updated: Jan 31, 2022
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This beginner’s guide explains everything you need to know about Starbucks. Get a quick history of the company, its recent performance, and what you can expect to happen to the share price in the future.

Compare the best Starbucks trading platforms

If you just want to dive in and get shares straight away, use one of the brokers below. These are the best trading platforms around and come approved by our financial experts. Not ready for that yet? Keep reading to learn more about Starbucks.

1
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Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
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Full regulations list:

How to buy Starbucks stock, a step-by-step guide

The process of getting shares in Starbucks isn’t massively complicated, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:

  1. Choose a broker. You will need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
  2. Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
  3. Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Starbucks shares.
  4. Place an order for SBUX stock. Search for Starbucks’s ticker symbol (SBUX) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
  5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Starbucks shares will be listed in your account. Congratulations, you’ve just bought shares in Starbucks.

What is Starbucks? And should I invest?

Starbucks is an American coffee chain that runs over 30,000 stores across the world. It started out selling coffee beans and equipment in the 1970s, but quickly transformed into selling cups of coffee and began a rapid global expansion. It’s now the largest coffee company on the planet.

The main driver of Starbucks’ success comes from transforming coffee into a major part of the American lifestyle. Coffee also offers high profit margins – Starbucks makes around 30% profit on every cup – and as a big corporation is able to use economies of scale to drive its costs down.

That makes Starbucks an appealing investment. It has consistently grown over many years and is now a blue-chip stock that you can rely on. While it might not offer the sort of soaring growth you might get from a tech company, it comes with far less risk: it makes a lot of money, and its place at the top of the coffee tree is assured.

How has the company performed in recent years?

It has had a near constant run of success since the end of the 2008 financial crisis. The only blot on the copybook was the 2020 coronavirus crash but, even despite that, Starbucks stock was still up 15% on the year.

It increased sales every year from 2010 until the pandemic, and the decade also saw significant global expansion. From $10bn annual revenue in 2010, Starbucks was reporting more than $26bn a decade later. A lot of that growth has come from Asia, in particular, which is now home to thousands of stores. 

Some of the most promising performance has come out of China, where Starbucks’ efforts to focus on digital have already met with success. Its rewards programme – which is important because it keeps customers coming back – saw a 40% increase in users even before the pandemic hit.

Is it a good time to buy Starbucks shares now?

There has rarely been a bad time to do so over the last decade. It’s one of the most globally recognisable brands and has come out of a potentially devastating pandemic relatively unscathed. It might be a good bet as a stable, blue-chip addition to your portfolio.

The company is planning to open another 20,000 new stores over the next decade. That would put it above McDonald’s as the largest restaurant chain in the world and increase its revenues significantly. Add to that a strong balance sheet, brand, and plenty of innovation – particularly from a powerful mobile app – and the future looks bright for Starbucks.

Similarly, Starbucks’ global reach means that it isn’t too reliant on one country for its revenue. China, perhaps the biggest growth opportunity of all, is already its second largest market behind the US. All in all, it looks well set to continue growing in the future. You can use the news and market analysis in the links below to track any changes in its fortunes.

Starbucks (NASDAQ: SBUX) shares extended their correction from the recent highs while the Wall Street analyst target is around 6% above the current price. There are certainly better long-term investment opportunities at the moment, even though Starbucks has an excellent position in the market. Fundamental analysis: Covid-19 pandemic continues…
Starbucks (NASDAQ: SBUX) shares have been moving in an uptrend last several months, and according to technical analysis, there is no risk of the bear market for now. Starbucks has a very good position in the market, but the current share price does not provide an attractive entry point…
Shares of Starbucks (NASDAQ:SBUX) are trading around 1% higher today despite expectations that its fiscal second-quarter earnings will drop by 46% amid the COVID-19 outbreak. Fundamental analysis: Worst is still to come, warns Starbucks Starbucks said last night that it expects to earn $0.32 per share for its fiscal…

Buying, selling and trading Starbucks shares for beginners

What to do before buying shares

You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment. 

With that in mind, here’s a checklist to run through before you start.

  1. Research the company. You should always examine the fundamentals of a company first. What is Starbucks? How did the company get its start? How did it grow? Is Starbucks’s revenue and profit growth picking up? Is the company innovating? The more you know about Starbucks, the better positioned you’ll be to make smart investment decisions.
  2. Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
  3. Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
  4. Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
  5. Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
  6. Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our news section can help you keep on top of movements in the financial markets.

What is the difference between buying, selling, and trading shares?

If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Starbucks shares. Here’s a quick run-through of what’s involved in each.

Buying Starbucks

This process involves finding a broker and placing an order for Starbucks stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.

Selling Starbucks

When you sell any Starbucks shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit. 

When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Starbucks’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.

Trading Starbucks

Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.

You can trade Starbucks shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.

Share dealing vs CFD trading

When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.

Here’s a quick summary of the two approaches, and the pros and cons of each.

Share dealing 

Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.

When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.

Pros

  • Can build wealth over time to achieve financial goals
  • Don’t need to be very reactive to short-term market movements
  • Some stocks will give you an income through regular dividend payments

Cons

  • Takes a long time to realise any profits
  • Your capital is tied up in stocks and cannot be used for other investments

CFD Trading 

If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.

One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into SBUX shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.

When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.

Pros

  • Can generate fast profits if you read the market right 
  • Some platforms allow you to trade with leverage
  • Prevents your capital being tied up so you can take advantage of investment opportunities

Cons

  • Trading with leverage is risky and can lead to big losses
  • Doesn’t necessarily generate growth over the long term

Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our course on how to trade stocks.

How to choose a broker

With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:

  • Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
  • Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
  • Regulation. You should only use regulated brokers. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
  • Payment methods available. You might want to fund your trading account using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
  • Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
  • Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.

Latest Starbucks news

Starbucks Corporation (NASDAQ: SBUX) down 30% from its record high in July 2021 is an “exciting” stock to own right now, says Hightower’s Stephanie Link. Link explains why she likes Starbucks stock The coffee chain might have failed to meet Street expectations in Q2 but Link believes the earnings…
Starbucks Corporation (NASDAQ: SBUX) terminated its share repurchase programme on Monday to invest more into “our people” and “our stores”. Shares slid 5.0%.    Rationale for suspending stock buybacks Starbucks has had 170 of its locations petition to unionize in recent weeks – a situation it hopes will remedy…
Starbucks Corporation (NASDAQ:SBUX) stock has been declining since the start of 2022. The stock started the year at a price of $117 but is now trading at $91, after touching a low of $79 in mid-March. The stock decline accelerated in early February, after an adjusted…

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Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

https://www.tradingview.com/symbols/NASDAQ-SBUX/

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Lead content editor
James is the lead content editor for Invezz, covering the stock market, cryptocurrency, and macroeconomic markets. Outside of work, James is an avid trader and golfer… read more.