Starbucks valuation too high: Analyst

While Starbucks Corp. recently announced FoodShare, a charity program that prevents foodwaste through the donation of unsold food as part of its efforts to tackle food waste and feed the hungry, its valuation remains "too high," according to a research analyst at Stephens.

Starbucks has posted "impressive results" with an 8 percent sales growth, but "at 32 times earnings that's about 35 percent above its five-year historical valuation average," Will Slabaugh told CNBC's "Power Lunch."

"A lot of the good news is baked into the stock here," he added.

Still, investors such as Peter Andersen, CIO at Congress Wealth Management, remain bullish, as they expect the coffee company to grow internationally, double store count in China in the next three years, and consider the stock holds no headline risk. Yes, the value could be considered "tippy," but "the prospects for the company are very, very exciting," the executive contended.

The Seattle-based retailer's stock is down 2 percent year to date, but has surged 21 percent in the past year; the stock traded slightly down on Wednesday.

"It's innovative and it's innovative in a very simple business: coffee beans," Anderson argued. "It's a marketing 101 dream case in terms of attracting customers and keeping them."

Still, Slabaugh said that the upsides of the coffeehouse are already "baked into the stock."

"We are actually facing more difficult comparisons year over year, and typically restaurant consumer stocks, as you roll into facing these difficult comparisons, tend to trade pretty poorly," he said on Wednesday.