Starbucks

Management restarted buybacks in FY24 and has raised the dividend for 15 consecutive years, yet FY25 cash use rightly tilts toward store investment, staffing, and simplification to restore unit economics. Recent bond issuance improves duration but increases gross debt. Stock‑based compensation is present but not excessive relative to scale.

M&A is limited. Overall we see prudent, returns‑oriented allocation with a near‑term bias to operational capex and talent, which is appropriate but temporarily dilutive to margins and free cash flow.