Starbucks

Historically the company has demonstrated an ability to raise prices above inflation while growing units and ticket. In FY25, management intentionally dialed back discounting and is repositioning value through experience rather than couponing, which has pressured near‑term comps as consumers remain price sensitive.

Channel Development margins near mid‑40s underscore brand monetization via partners, but in U.S. retail the room for further headline price increases looks limited until service speed and perceived value improve. On balance we assess solid pricing power that can be re‑exerted once operational issues are addressed.