Starbucks (NASDAQ:SBUX – Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 2.550-2.650 for the period, compared to the consensus earnings per share estimate of 2.390. The company issued revenue guidance of -, compared to the consensus revenue estimate of $37.7 billion.
Analyst Ratings Changes
A number of brokerages have issued reports on SBUX. Royal Bank Of Canada reissued a “sector perform” rating and set a $115.00 price objective (up from $110.00) on shares of Starbucks in a research report on Thursday. BMO Capital Markets reissued an “outperform” rating and issued a $130.00 target price on shares of Starbucks in a report on Thursday. Morgan Stanley upped their target price on Starbucks from $111.00 to $115.00 and gave the company an “overweight” rating in a research note on Thursday. UBS Group raised their target price on shares of Starbucks from $105.00 to $112.00 and gave the company a “neutral” rating in a research report on Thursday. Finally, Wedbush started coverage on Starbucks in a research note on Thursday, May 14th. They set an “outperform” rating on the stock. Eighteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $112.04.
Read Our Latest Research Report on SBUX
Starbucks Trading Up 2.3%
Starbucks (NASDAQ:SBUX – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.19. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The company had revenue of $9.32 billion for the quarter, compared to analyst estimates of $9.17 billion. During the same quarter in the prior year, the company posted $0.50 EPS. The business’s revenue for the quarter was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. As a group, equities analysts expect that Starbucks will post 2.41 EPS for the current year.
Starbucks Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be given a $0.62 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a yield of 2.3%. Starbucks’s dividend payout ratio (DPR) is currently 187.88%.
Insiders Place Their Bets
In other news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $104.00, for a total value of $231,816.00. Following the completion of the transaction, the chief executive officer owned 77,364 shares of the company’s stock, valued at approximately $8,045,856. This represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 6,687 shares of company stock worth $679,033. 0.03% of the stock is owned by insiders.
Starbucks News Summary
Here are the key news stories impacting Starbucks this week:
- Positive Sentiment: Fiscal Q3 adjusted EPS was $0.85, well above the $0.66 analyst consensus and up from $0.50 a year earlier. Revenue of $9.32 billion also exceeded estimates of approximately $9.17 billion. Starbucks beats quarterly sales estimates
- Positive Sentiment: Global comparable-store sales rose 7.9%, exceeding the 5.7% expected by analysts, with comparable transactions up 4.2%. North American revenue increased 7% to $7.4 billion, suggesting that faster service, more welcoming cafes, new products and expanded food offerings are attracting customers despite cautious consumer spending. Starbucks Reports Q3 Fiscal Year 2026 Results
- Positive Sentiment: Starbucks raised fiscal 2026 adjusted EPS guidance to $2.55-$2.65 from $2.25-$2.45 and expects full-year global comparable-sales growth of 6%. The roughly 10% guidance increase reinforced expectations that the turnaround is gaining traction. Starbucks Just Raised Full-Year Profit Guidance
- Positive Sentiment: Several analysts lifted their targets following the report. Wells Fargo raised its target to $125 with an Overweight rating, while Morgan Stanley increased its target to $115. TD Cowen reaffirmed a Buy rating and $120 target.
- Neutral Sentiment: Analyst opinion remains mixed: DA Davidson, UBS and Citi maintained neutral ratings despite raising their targets to $110-$112, while Wolfe Research kept a Hold rating, citing a full valuation and sales gains driven partly by operational improvements.
- Negative Sentiment: Revenue declined 1.4% year over year, partly reflecting the restructuring of Starbucks’ China operations into a licensed joint venture. At a high valuation, investors may also be vulnerable to disappointment if traffic growth or margin expansion slows.
Institutional Investors Weigh In On Starbucks
Several hedge funds have recently bought and sold shares of the business. Brighton Jones LLC increased its position in Starbucks by 86.5% in the 4th quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company’s stock worth $16,126,000 after purchasing an additional 81,952 shares during the last quarter. Schnieders Capital Management LLC. grew its stake in Starbucks by 47.0% during the second quarter. Schnieders Capital Management LLC. now owns 3,642 shares of the coffee company’s stock worth $334,000 after buying an additional 1,164 shares during the last quarter. Flow Traders U.S. LLC bought a new position in shares of Starbucks in the second quarter valued at about $288,000. Gamco Investors INC. ET AL raised its position in Starbucks by 92.8% in the 2nd quarter. Gamco Investors INC. ET AL now owns 5,225 shares of the coffee company’s stock worth $479,000 after purchasing an additional 2,515 shares during the last quarter. Finally, NewEdge Advisors LLC raised its holdings in Starbucks by 7.6% during the 2nd quarter. NewEdge Advisors LLC now owns 112,710 shares of the coffee company’s stock worth $10,328,000 after purchasing an additional 7,978 shares during the last quarter. 72.29% of the stock is owned by hedge funds and other institutional investors.
Starbucks Company Profile
Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.
Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.
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