Does Starbucks Corporation pass the AAOIFI financial ratio screen?

As of 2026-03-29: interest-bearing debt is 13.0% of market cap (limit < 30%) — pass; cash plus interest-bearing securities is 1.5% (limit < 30%) — pass. The impermissible-income ratio (< 5% limit) also passes. Ratios are recomputed as new filings and prices move.

Is Starbucks Corporation held in halal ETFs like SPUS or HLAL?

No — as of our last check, Starbucks Corporation is not held by SPUS or HLAL. Absence can reflect a failed screen or index scope, so we report it as a signal rather than a ruling.

Is Starbucks Stock Halal? Starbucks Corporation (SBUX) passes our computed AAOIFI financial-ratio screen (data as of 2026-03-29) — interest-bearing debt 13.0% and cash plus interest-bearing securities 1.5% of market cap, both under the 30% limits — but both major U.S. Shariah-screened ETFs (SPUS and HLAL) exclude it from their holdings as of June 2026, which typically signals a business-activity concern that automated ratio screens cannot see. We report it as conditional until the segment revenue in the latest annual filing is verified. Reviewed 2026-06-14. Published by HalalWallet.

Is Starbucks Stock Halal?

Q: Is Starbucks Stock Halal?

Conditional: Starbucks Corporation (SBUX) passes our computed AAOIFI financial-ratio screen (data as of 2026-03-29) — interest-bearing debt 13.0% and cash plus interest-bearing securities 1.5% of market cap, both under the 30% limits — but both major U.S. Shariah-screened ETFs (SPUS and HLAL) exclude it from their holdings as of June 2026, which typically signals a business-activity concern that automated ratio screens cannot see. We report it as conditional until the segment revenue in the latest annual filing is verified. (Financial data as of 2026-03-29; basis: AAOIFI Shariah standards.)

Q: Is Starbucks Corporation (SBUX) stock halal?

Starbucks Corporation (SBUX) passes our computed AAOIFI financial-ratio screen (data as of 2026-03-29) — interest-bearing debt 13.0% and cash plus interest-bearing securities 1.5% of market cap, both under the 30% limits — but both major U.S. Shariah-screened ETFs (SPUS and HLAL) exclude it from their holdings as of June 2026, which typically signals a business-activity concern that automated ratio screens cannot see. We report it as conditional until the segment revenue in the latest annual filing is verified.

Q: Is Starbucks Corporation held in halal ETFs like SPUS or HLAL?

No — as of our last check, Starbucks Corporation is not held by SPUS or HLAL. Absence can reflect a failed screen or index scope, so we report it as a signal rather than a ruling.

Q: What should I verify before buying Starbucks Corporation?

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.

Starbucks Corporation · SBUX · NASDAQ

ConditionalPermissible with conditions

Starbucks Corporation (SBUX) passes our computed AAOIFI financial-ratio screen (data as of 2026-03-29) — interest-bearing debt 13.0% and cash plus interest-bearing securities 1.5% of market cap, both under the 30% limits — but both major U.S. Shariah-screened ETFs (SPUS and HLAL) exclude it from their holdings as of June 2026, which typically signals a business-activity concern that automated ratio screens cannot see. We report it as conditional until the segment revenue in the latest annual filing is verified.

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

Our Analysis

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

Screen	Value	AAOIFI limit	Result
Interest-bearing debt / market cap	13.0%	< 30%	Pass
Cash + interest-bearing securities / market cap	1.5%	< 30%	Pass
Impermissible income / total revenueInterest income only — verify other impermissible revenue lines in the 10-K	0.3%	< 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.

Standard	Debt	Cash & interest securities	Limit / basis	Result
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.

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