Skip to main content
HalalWallet app launches July 2026. Halal budgeting, zakat, major-purchase planning. Reserve your spot in the first 1,000 invites

Is Starbucks Stock Halal? Starbucks Corporation (SBUX) passes the screens we can compute (data as of 2026-03-29) — interest-bearing debt / market cap 13.0%, cash + interest-bearing securities / market cap 1.5%, impermissible income / total revenue 0.3% — but one screen requires case-by-case judgment. It is not held by Shariah-screened ETFs SPUS or HLAL. Reviewed 2026-06-14. Published by HalalWallet.

Is Starbucks Stock Halal?

Starbucks Corporation · SBUX · NASDAQ

ConditionalPermissible with conditions

Starbucks Corporation (SBUX) passes the screens we can compute (data as of 2026-03-29) — interest-bearing debt / market cap 13.0%, cash + interest-bearing securities / market cap 1.5%, impermissible income / total revenue 0.3% — but one screen requires case-by-case judgment. It is not held by Shariah-screened ETFs SPUS or HLAL.

Financial data as of 2026-03-29 · Screening basis: AAOIFI · Last reviewed 2026-06-14

HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

Do the halal screening authorities agree?

Single published source1 of 5 authorities with a published position
  • HalalWallet (AAOIFI)· Doubtful

HalalWallet (AAOIFI) rates Starbucks Corporation doubtful; no other recognized authority has a published position.

Stances are normalized from each authority's own dated public position. Disagreement usually reflects a methodology or standard difference (ratio timing, market-cap vs total-assets denominator), not an error. For the fund screens (Wahed/HLAL, SP Funds/SPUS), only a confirmed holding that passed the fund's screen counts as a pass — a non-holding is left blank because absence can reflect index scope.

Is Starbucks Stock Halal?

Starbucks Corporation (SBUX) passes the screens we can compute (data as of 2026-03-29) — interest-bearing debt / market cap 13.0%, cash + interest-bearing securities / market cap 1.5%, impermissible income / total revenue 0.3% — but one screen requires case-by-case judgment. It is not held by Shariah-screened ETFs SPUS or HLAL.

  • Interest-bearing debt / market cap: 13.0% (< 30%) — Pass
  • Cash + interest-bearing securities / market cap: 1.5% (< 30%) — Pass
  • Impermissible income / total revenue: 0.3% (< 5%) — Pass
  • Mainstream Shariah standards disagree on this company — see the cross-standard table below.
  • Financial ratios sourced from filings as of 2026-03-29.

How we read the evidence

HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.

Starbucks sells coffee, tea, food, and packaged beverages, which is a permissible business. Its fiscal 2025 revenue of $37.2 billion comes overwhelmingly from company-operated stores (about 83%) and licensed stores (about 12%), with the rest from its Channel Development packaged-products business. The business-activity screen is largely clean, with a couple of minor exceptions worth knowing.

On alcohol, Starbucks once ran a 'Starbucks Evenings' program serving beer and wine, but it was discontinued company-wide around 2017; today only the small number of Starbucks Reserve Roastery locations serve alcohol, and that revenue is immaterial and not separately disclosed. Some breakfast food items contain pork. Neither category is broken out in the filings, and both are a small slice of overall sales, the situation in which AAOIFI-style screens typically allow the stock with dividend purification.

The sticking point for Starbucks is more likely financial than product-based. The company is in the S&P 500 but does not appear in SPUS as of June 11, 2026, and is also absent from HLAL. Starbucks carries negative book equity after years of debt-funded buybacks, and leverage is a frequent reason large consumer names fail Shariah financial screens, but SPUS does not publish a per-stock explanation, so the precise cause cannot be confirmed. A Muslim investor should treat Starbucks as currently outside both major US Shariah funds and check a live screener, paying particular attention to the leverage ratios, before relying on any verdict.

Business Activity Screen

Pass· impermissible revenue ≈ 0.3% (AAOIFI limit < 5%)

Starbucks Corporation is a roaster, marketer, and retailer of specialty coffee, operating through company-operated and licensed stores across North America and International segments plus a Channel Development business. Per its fiscal 2025 10-K (year ended September 28, 2025), total net revenues were $37,184.4 million; company-operated stores accounted for about 83% of revenue and licensed stores about 12%, with the remainder in other (packaged/single-serve products and royalties).

Selling coffee, tea, food, and related products is permissible. Shariah-relevant notes: (1) Starbucks historically ran a 'Starbucks Evenings' program serving beer and wine, which was discontinued company-wide around 2017; a limited amount of alcohol is still served at Starbucks Reserve Roastery locations, and this alcohol revenue is not separately disclosed and is immaterial. (2) Some food items contain pork (for example certain bacon/sausage breakfast sandwiches), not separately disclosed. (3) Starbucks earns interest income (interest income and other, net was $113.3M in fiscal 2025 per the 10-K) and carries interest expense ($542.6M), reported outside operating revenue. Starbucks is an S&P 500 constituent but is absent from SPUS as of 2026-06-11; the company reports negative shareholders' equity from debt-funded buybacks, a common cause of Shariah leverage-screen failure, but SPUS does not publish the reason.

Financial Ratio Screen

ScreenValueAAOIFI limitResult
Interest-bearing debt / market cap13.0%< 30% Pass
Cash + interest-bearing securities / market cap1.5%< 30% Pass
Impermissible income / total revenueInterest income only — verify other impermissible revenue lines in the 10-K0.3%< 5% Pass

Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-29 · thresholds per AAOIFI Shariah standards.

This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →

How Starbucks screens across Shariah standards

The standards disagree on this company. It passes some Shariah screens and fails others — which is exactly why you may see a different answer in different apps. Our headline verdict uses AAOIFI, the strictest and most widely cited mainstream standard.

StandardDebtCash & interest securitiesLimit / basisResult
AAOIFI (our standard)13.0%1.5%< 30% of market cap Pass
Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison.13.0%1.5%< 33% of market cap Pass
MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce.49.4%5.6%< 33.33% of total assets Fail

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-29)not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →

These companies pass under some mainstream standards and fail under others — the same pattern as this verdict. That is why two apps can show different answers.

Conditions

Our computed AAOIFI financial-ratio screen passes on the latest filing data, but both major U.S. Shariah-screened ETFs — SPUS (S&P Shariah methodology) and HLAL (FTSE Shariah methodology) — exclude Starbucks Corporation from their holdings as of our June 2026 check, even though it is in their parent indices. Professional screens apply filing-level business-activity analysis (alcohol, pork, tobacco, or media revenue share) and different ratio bases that an automated ratio screen cannot replicate. That divergence usually signals an impermissible-revenue question. Treat this as unresolved until the segment revenue in the latest annual filing is verified line by line.

Scholars' & Screeners' Positions

Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.

  • SP Funds S&P 500 Sharia ETF (SPUS)

    Not held in SPUS as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.

    Source →
  • Wahed FTSE USA Shariah ETF (HLAL)

    Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.

    Source →

What to do instead

You don't have to choose between investing and your values — screened alternatives exist for nearly every position.

Browse all stock verdicts

Related guides

Stay Updated

Get alerted when screening statuses change — new financials, new authority positions, new verdicts

No spam ever. Unsubscribe in one click.

The Final Step: Your Scholar Conversation

Major whether Starbucks Corporation is halal decisions involve nuances that vary by scholarly opinion and personal circumstance — which is why HalalWallet is built as the research step, not the ruling. We do the homework on comparisons, structures, and oversight; a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor covers what no comparison site can — guidance specific to your situation. Bring your shortlist to that conversation so it starts at the decision, not the basics.

How to use this comparison: HalalWallet is an independent educational comparison platform — by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.

Product structures and Shariah oversight vary by provider, so finish with three built-in steps:

  • Confirm current terms and halal compliance directly with the provider — their quote is final.
  • Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
  • Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.

Frequently Asked Questions

How to cite this page

Preferred format (HTML):

According to HalalWallet (“Is Starbucks Stock Halal?”, https://www.halalwallet.us/is-it-halal/starbucks-stock, retrieved 2026-07-16).

AI / agent mirror (Markdown, CC BY 4.0):

Bulk feed record: verdict.starbucks-stock in /api/llm-feed.json

For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.

HW
HalalWallet Editorial Team

Editorial Team, HalalWallet

Independent halal finance research

Reviewed by: HalalWallet Editorial TeamLast reviewed: 2026-06-14Disclosure: Featured partners may compensate HalalWallet for clicks. Editorial policy and full disclosures.

Reviewed quarterly and updated for major content changes.