SBUX
Starbucks Corp.
Is SBUX Halal?
Coffee and beverages — generally permissible, but the current debt screen fails.
What You Should Know
Starbucks sells coffee and non-alcoholic beverages. Its March 29, 2026 Form 10-Q reports $30,557.5 million of assets, $15,081.9 million of interest-bearing debt, $1,700.3 million of cash plus short-term investments, $1,288.9 million of receivables, and $9,531.5 million of quarterly revenue. Debt/assets is 49.36%, so the examined financial screens fail even though the core business remains generally permissible. Some Muslim investors avoid Starbucks due to BDS (boycott) concerns, which is separate from the Sharia screen.
⚠️ Concerns
- •Debt/assets is 49.36% and exceeds the examined asset-based limits
- •Select stores serve alcohol; company-wide revenue is not separately disclosed
- •BDS considerations (non-Sharia, personal choice)
- •Disclosed interest income and other net income is not a purification prescription
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-29; calculated 2026-07-14.
15,081.9 / 30,557.5
1,700.3 / 30,557.5
2,820.9 / 30,557.5
37 / 9,531.5
- Financial
- Fails
- Overall
- Fails
Debt is 49.36% of assets, above the examined limit; liquidity is 5.56%, receivables plus cash are 9.23% and disclosed income is 0.39%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 49.36%, above the examined MSCI limit; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 49.36%, above the examined Malaysia financial limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; debt failure is independent of that denominator.
Business-activity disclosure
Starbucks operates company-operated and licensed coffee stores. Coffee retail is generally permissible, while food, alcohol where offered, labor, licensing and conventional financing require qualitative review; the current debt screen fails.
Limitation: The filing does not quantify a scholar-specific prohibited-revenue numerator; disclosed interest income and other net income is a screen input, not a complete purification prescription.
Purification
Starbucks discloses $37.0 million of interest income and other net income but does not prescribe a scholar-approved purification percentage; debt failure is independent.
Inputs, assumptions and primary sources
- Amounts are USD millions from Starbucks' March 29, 2026 Form 10-Q.
- Debt includes $1,997.7 million current debt and $13,084.2 million long-term debt; operating leases are excluded.
- Cash is $1,532.0 million and short-term investments are $168.3 million.
- Accounts receivable are $1,288.9 million and quarterly net revenues are $9,531.5 million; interest income and other, net, is $37.0 million.
- The filing does not allocate beverage, food, licensed-store or other revenue into a universal prohibited-activity numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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