Starbucks Corporation

Starbucks Corporation

Starbucks Corporation (SBUX) is a global coffeehouse chain and branded coffee product company with a market capitalisation of about $97.6 billion. Investors should know it combines retail store growth, a premium brand, and a high‑engagement loyalty programme and mobile app that drive repeat sales and digital revenue. Growth comes from new stores (company‑owned and licensed), product innovation, and rising spend in key markets such as China. Key risks include sensitivity to commodity costs (coffee beans), labour and lease expenses, competitive pressure from local and international chains, and macroeconomic or currency headwinds. The business model benefits from relatively high margins on beverages and a recurring‑revenue feel through loyalty membership, but sales are cyclical and can vary by region and consumer spending. This summary is for educational purposes only and is not personal financial advice; investors should consider their own risk tolerance, time horizon and seek professional advice before investing.

Why It's Moving

Starbucks Corporation

Starbucks Gains 14% YTD Despite Analyst Caution as Turnaround Progress Faces Margin Visibility Questions

Starbucks shares are experiencing their strongest start to a year in five years, climbing nearly 14% through mid-March 2026 as Wall Street grows more optimistic about a domestic sales rebound. However, the rally has faced headwinds from cautious analyst calls highlighting uncertainty around the pace of margin recovery and profitability improvement.
Sentiment:
⚖️Neutral
  • William Blair upgraded SBUX to Outperform, expecting the company's first domestic comparable sales gain in two years when reporting December quarter results, positioning it for positive full-year comp gains in fiscal 2026
  • Bank of America raised its price target to $114 while maintaining a Buy rating, but DA Davidson initiated coverage at Neutral with a $97 target, citing unclear visibility on margin recovery and the speed needed to reach fiscal 2028 guidance
  • Starbucks is expanding its corporate footprint with plans to open a Nashville office later in 2026 to manage supply chain operations across North America, reflecting confidence in scaling operations despite ongoing labor negotiations with the union

When is the next earnings date for Starbucks Corporation (SBUX)?

Starbucks' next earnings report is estimated for April 28, 2026, though the company has not yet officially announced the date. This earnings release will cover Q2 fiscal year 2026 results and will be followed by a conference call where management will discuss financial performance and forward guidance. Analysts are currently projecting earnings per share of $0.41 for the quarter. The announcement will occur before market open, consistent with Starbucks' typical reporting schedule.

Stock Performance Snapshot

Buy

Analyst Rating

Analysts recommend buying Starbucks stock as its target price suggests good growth potential.

Above Average

Financial Health

Starbucks is successfully generating revenue and cash flow, indicating strong business performance.

Average

Dividend

Starbucks' dividend yield of 2.48% offers a decent return for investors seeking regular income. If you invested $1000, you would be paid $24.60 a year in dividends (based on the last 12 months).

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Baskets Featuring SBUX

Starbucks Closures: Coffee Chain Competition Risks

Starbucks Closures: Coffee Chain Competition Risks

Starbucks is closing 100 stores and cutting 900 jobs in a major restructuring effort aimed at improving profitability. This strategic contraction could create a significant opportunity for competing coffee chains and quick-service restaurants to capture market share.

Published: October 5, 2025

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The Great Coffee Shake-Up

The Great Coffee Shake-Up

Keurig Dr Pepper's acquisition of JDE Peet's and subsequent split into two specialized companies is reshaping the global beverage market. This strategic move creates a massive new competitor in the coffee sector, potentially creating new opportunities for rival beverage companies and their suppliers.

Published: August 27, 2025

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The Coffee Shake-Up: A Consolidation Play

The Coffee Shake-Up: A Consolidation Play

Coca-Cola is exploring a sale of its Costa Coffee chain, a move that could spark a wave of mergers and acquisitions. This theme focuses on companies poised to benefit from the strategic reshuffling in the global coffee industry.

Published: August 25, 2025

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Beverage Giants Brew New Deals

Beverage Giants Brew New Deals

Keurig Dr Pepper's $18 billion acquisition of JDE Peet's creates a global coffee powerhouse, immediately followed by a strategic split of its coffee and beverage units. This industry shake-up could spark further M&A, creating opportunities for competitors and suppliers poised to benefit from the shifting market dynamics.

Published: August 25, 2025

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Brewing Opportunities: The Costa Divestment

Brewing Opportunities: The Costa Divestment

Coca-Cola is considering a sale of its Costa Coffee chain, a move that could result in a significant financial loss for the beverage giant. This potential divestment could reshape the competitive coffee retail market, creating opportunities for rival chains and their suppliers.

Published: August 24, 2025

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US-Brazil Tariff Tremors

US-Brazil Tariff Tremors

This carefully selected group of stocks represents companies positioned to benefit from the new 50% tariff on Brazilian imports. Our professional analysts have identified non-Brazilian businesses across steel, agriculture, coffee, and aerospace that are ready to capture market share as competitors' goods become prohibitively expensive.

Published: July 11, 2025

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China's Coffee Shake-Up

China's Coffee Shake-Up

A carefully selected group of stocks poised to benefit as Starbucks considers selling a stake in its Chinese operations. This collection spans local competitors, beverage giants, and supply chain players all strategically positioned to capitalize on this major market shift.

Published: July 11, 2025

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Political Donors: Team Blue

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This collection features influential corporations whose employees and PACs heavily support Democratic campaigns and causes. Our analysts have carefully selected these stocks based on their consistent political giving patterns and potential to benefit from Democratic policy priorities.

Published: June 17, 2025

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TikTok-Famous Brands

TikTok-Famous Brands

Discover companies that have turned viral social media moments into real financial success. This collection represents brands that professional investors are watching as they transform TikTok fame into lasting market growth.

Published: June 17, 2025

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The Turnaround Artists

The Turnaround Artists

These companies are led by elite CEOs with impressive track records of rescuing struggling businesses. Our analysts have carefully selected these stocks based on leadership that has the potential to engineer dramatic corporate revivals and create significant investor value.

Published: June 17, 2025

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Popular Dividend Stocks

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Invest in well-known companies that not only offer growth potential but also pay you a regular income. These household names have strong track records of sharing profits with their shareholders through dividends.

Published: May 24, 2025

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Food & Drink

Food & Drink

Hungry for an investment? These carefully selected food and beverage stocks offer a menu of growth opportunities. Our analysts have handpicked industry leaders that feed and refresh millions of customers every day.

Published: May 1, 2025

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Why You’ll Want to Watch This Stock

📈

Growth from Loyalty

The Starbucks Rewards programme and mobile app help lift repeat sales and higher average spends, though digital trends and retention can shift over time.

🌍

Expansion in China

China is a major growth opportunity with room for additional stores and premiumisation, balanced by local competition and geopolitical or economic risks.

Margins and Costs

Premium pricing on beverages supports margins, but coffee commodity prices, labour and rent pressures can compress profits in weaker periods.

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Frequently asked questions