Starbucks Reports Positive Growth in Latest Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy SBUX?
Source: Yahoo Finance
- Traffic Recovery: Starbucks reported a 4% same-store sales growth in Q1 2026, with global foot traffic up 3% year-over-year, indicating a rebound in brand appeal after two years of decline, and expects same-store sales to rise by 3% or more in fiscal 2026.
- New Strategy in China: Starbucks has entered a joint venture with Boyu Capital, selling a 60% stake to rapidly expand, aiming to increase its presence in China from about 8,000 stores to 15,000 to 20,000, adapting to a fast-changing market environment.
- Profitability Under Pressure: Operating expenses rose by 9.2%, outpacing revenue growth of 5.5%, leading to a decline in operating margin from 11.9% to 9%, as the company faces challenges from labor investments, tariffs, and rising coffee prices.
- Optimistic Future Outlook: Management anticipates an improvement in adjusted operating margins for fiscal 2026, with Wall Street projecting a 16% compound annual growth rate in operating income from fiscal 2025 to 2028, reflecting confidence in Starbucks' future profitability.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SBUX is 96.12 USD with a low forecast of 59.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 96.070
Low
59.00
Averages
96.12
High
115.00
Current: 96.070
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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