The analysis of Starbucks (SBUX) highlights a considerable deceleration in revenue growth, with a compounded annual growth rate of 6.6% over the past decade, increasing revenues from $21.3 billion to $37.2 billion. This growth rate is noted as a significant slowdown compared to previous periods. Furthermore, the company's Return on Invested Capital (ROIC) has demonstrated an alarming downward trend, falling from 26.6% in 2016 to 7.4% in the most recent trailing twelve-month period. Key contributing factors to this operational deceleration include challenges in the execution of its digital rollout, particularly regarding online ordering and in-store pickup, which has reportedly diminished the customer experience. The incoming CEO, Brian Niccol, is tasked with addressing these operational hurdles. Strategically, Starbucks has recently divested its operations in China, a decision influenced by intense local competition and prevailing anti-United States sentiment among consumers. The analyst views this divestiture favorably, aiming to optimize capital allocation and reduce aggressive competition in that region. Looking forward, the analysis suggests an expectation of improved performance from Starbucks over the next five-year period, largely due to Niccol's successful track record at Chipotle. However, current valuation metrics present a mixed outlook. The stock is observed trading at a forward Price-to-Earnings (P/E) ratio of 35.02. A discounted cash flow (DCF) model estimates an intrinsic value of $86.85 per share, comparing to a current market price of $83.85. This positions SBUX as fairly valued based on DCF, yet potentially overvalued when considering its P/E multiple relative to recent performance. Consequently, the overall recommendation for SBUX for the 2026 timeframe is a 'Hold/Market Perform' rating.