Starbucks (NASDAQ:SBUX) Announces Quarterly Earnings Results

Starbucks (NASDAQ:SBUX) released its quarterly earnings results on Wednesday. The coffee company reported $0.85 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.19, FiscalAI reports. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.The business had revenue of $9.32 billion during the quarter, compared to analysts’ expectations of $9.17 billion. During the same period last year, the firm posted $0.50 EPS. The firm’s revenue for the quarter was down 1.4% compared to the same quarter last year. Starbucks updated its FY 2026 guidance to 2.550-2.650 EPS.

Here are the key takeaways from Starbucks’ conference call:

• Strong sales momentum continued: Global comparable sales rose 7.9% in Q3, with U.S. comps up 7.9% on balanced transaction and ticket growth. Starbucks expects U.S. Q4 comps of at least 6.5% and is raising full-year global comp guidance to nearly 6%.
• Profitability improved significantly: Consolidated operating margin expanded 430 basis points to 14.4%, while EPS increased 70% to $0.85. The company raised full-year margin guidance to above 11% and EPS guidance to $2.55–$2.65, supported by sales leverage, cost savings, and easing coffee costs.
• Back to Starbucks initiatives are gaining traction: Green Apron Service, better staffing and supply-chain execution, and coffeehouse uplifts are improving service consistency and food availability. Starbucks surpassed 1,000 North American uplifts ahead of schedule and plans at least 1,500 by the end of fiscal 2026, while Rewards membership reached 35.8 million active U.S. members.
• Portfolio and international strategy are shifting: The China retail transition to a 40%-owned joint venture reduced reported revenue but creates a more capital-light model, with Starbucks targeting up to 20,000 China stores over time. North American net new company-operated growth may remain modest through fiscal 2027 as the company evaluates closures of underperforming locations and redirects resources toward remodels and international expansion.

Starbucks Price Performance

Shares of Starbucks stock traded up $2.36 during trading on Thursday, hitting $106.50. The company’s stock had a trading volume of 5,335,653 shares, compared to its average volume of 8,228,102. The stock has a market cap of $121.38 billion, a price-to-earnings ratio of 80.59, a price-to-earnings-growth ratio of 2.05 and a beta of 0.98. Starbucks has a 52 week low of $77.99 and a 52 week high of $109.23. The stock has a 50-day moving average price of $102.15 and a two-hundred day moving average price of $98.92.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a $0.62 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. Starbucks’s payout ratio is currently 187.88%.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Citigroup raised their price target on Starbucks from $108.00 to $112.00 and gave the stock a “neutral” rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Starbucks in a report on Thursday. Tigress Financial began coverage on Starbucks in a research note on Wednesday, April 15th. They set a “buy” rating and a $122.00 target price for the company. Wedbush started coverage on Starbucks in a research note on Thursday, May 14th. They issued an “outperform” rating on the stock. Finally, Stifel Nicolaus set a $117.00 price objective on Starbucks and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Eighteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $110.85.

Insider Transactions at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $104.00, for a total transaction of $231,816.00. Following the transaction, the chief executive officer directly owned 77,364 shares of the company’s stock, valued at approximately $8,045,856. The trade was a 2.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 6,687 shares of company stock worth $679,033. 0.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Starbucks

A number of hedge funds have recently made changes to their positions in SBUX. Corient Private Wealth LLC lifted its stake in shares of Starbucks by 146.6% in the second quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company’s stock worth $553,201,000 after acquiring an additional 3,596,014 shares during the period. T. Rowe Price Investment Management Inc. increased its position in Starbucks by 18.7% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 13,909,214 shares of the coffee company’s stock valued at $1,171,295,000 after purchasing an additional 2,186,907 shares during the period. Amundi raised its holdings in Starbucks by 57.1% during the 4th quarter. Amundi now owns 4,532,627 shares of the coffee company’s stock worth $381,693,000 after purchasing an additional 1,647,292 shares during the last quarter. Renaissance Technologies LLC bought a new position in Starbucks during the 4th quarter worth approximately $112,158,000. Finally, California Public Employees Retirement System lifted its position in shares of Starbucks by 39.2% in the 4th quarter. California Public Employees Retirement System now owns 3,356,091 shares of the coffee company’s stock worth $282,616,000 after purchasing an additional 944,679 shares during the period. 72.29% of the stock is currently owned by institutional investors.

Starbucks News Summary

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks reported adjusted EPS of $0.85, well above the $0.66 analyst consensus, while revenue of $9.32 billion exceeded expectations of approximately $9.17 billion. EPS also increased from $0.50 a year earlier. Starbucks beats quarterly sales estimates
• Positive Sentiment: Global comparable-store sales rose 7.9%, ahead of the 5.7% expected increase, driven by 4.2% transaction growth. North American revenue climbed 7% to $7.4 billion, suggesting stronger customer traffic rather than price increases is powering the recovery. Starbucks Reports Q3 Fiscal Year 2026 Results
• Positive Sentiment: Starbucks raised fiscal 2026 adjusted EPS guidance to $2.55–$2.65, up from $2.25–$2.45, and now expects full-year global comparable sales growth of 6%. The guidance increase was a major catalyst for the stock. Starbucks raised full-year profit guidance
• Positive Sentiment: Analysts responded favorably: TD Cowen reaffirmed a Buy rating with a $120 target, while Wells Fargo, Morgan Stanley, UBS and Citi raised their targets to $125, $115, $112 and $112, respectively. Analyst ratings for Starbucks
• Neutral Sentiment: Reported revenue declined 1.4% year over year, partly because Starbucks’ China operations were converted into a licensed joint venture. Investors will monitor whether North American momentum can offset international changes.
• Negative Sentiment: After a substantial year-to-date rally, some coverage argues SBUX may already reflect significant turnaround optimism. The stock’s elevated valuation increases the risk of profit-taking if traffic, margins or guidance momentum slows.

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.