Starbucks Donelson Expansion Tests Store Growth Against Rich Valuation Concerns

Simply Wall St

Wed, February 11, 2026 at 3:16 PM GMT+9 2 min read

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SBUX

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Starbucks (NasdaqGS:SBUX) has been named lead tenant in a new multi-tenant retail development in Donelson, Tennessee.

The project positions Starbucks as an anchor brand in a growing submarket near Nashville.

The move comes as the company is working through pressures on same store sales and profitability.

Starbucks, best known for its global coffeehouse network and branded consumer products, is still adding physical locations even as it deals with same store sales and margin pressures. Anchoring a new development in Donelson ties the company to a growing area, while giving the project a recognizable tenant that can help attract complementary retailers.

For investors, this kind of expansion can be useful to watch alongside store level performance data and overall capital spending. The Donelson deal offers a concrete example of how Starbucks is positioning its footprint, which you can weigh against your view on long term demand for café traffic and mixed use retail centers.

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NasdaqGS:SBUX Earnings & Revenue Growth as at Feb 2026

We’ve flagged 5 risks for Starbucks. See which could impact your investment.

Quick Assessment

**⚖️ Price vs Analyst Target**: At US$97.53 versus a consensus target of US$99.77, the price is roughly 2% below analyst expectations.

**❌ Simply Wall St Valuation**: Shares are described as trading about 33.5% above estimated fair value, which points to a rich valuation.

**✅ Recent Momentum**: The 30 day return of about 9.7% shows positive short term momentum in the share price.

There is only one way to know the right time to buy, sell or hold Starbucks: head to Simply Wall St’s company report for the latest analysis of Starbucks’s Fair Value.

Key Considerations

📊 The Donelson lead tenant role signals ongoing investment in physical stores. You can weigh this against pressures on same store sales and margins.

📊 Keep an eye on store level profitability, capex for new locations, and how new sites contribute to earnings per share over time.

⚠️ With negative shareholders' equity and a dividend that is not well covered by earnings or free cash flow, balance sheet strength and payout sustainability are key risks to track.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Starbucks analysis. Alternatively, you can visit the community page for Starbucks to see how other investors believe this latest news will impact the company’s narrative.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include SBUX.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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