Starbucks (NASDAQ:SBUX) Announces Earnings Results

Starbucks (NASDAQ:SBUX) posted its quarterly earnings results on Thursday. The coffee company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.72 by $0.08, FiscalAI reports. Starbucks had a negative return on equity of 38.01% and a net margin of 6.66%. The company had revenue of $9.14 billion during the quarter, compared to analysts’ expectations of $9.22 billion. During the same quarter in the previous year, the business earned $0.52 EPS. The firm’s revenue was down 4.5% on a year-over-year basis.

Here are the key takeaways from Starbucks’ conference call:

• Fiscal 2026 results exceeded expectations: Q4 global comparable sales rose 7.2%, U.S. comparable sales increased 7.7%, operating margin expanded 450 basis points to 14%, and EPS grew approximately 54% to $0.80.
• Starbucks expects continued earnings recovery in fiscal 2027, guiding to approximately 4% North America comparable-sales growth, 13.5%–14% operating margin, and EPS of $3.15–$3.25. Management said it is ahead of schedule toward its fiscal 2028 framework, supported by sales leverage and ongoing savings from its $2 billion cost program.
• Fiscal 2027 consolidated revenue is expected to decline approximately 1%, primarily because of the transition of Starbucks China’s retail operations to a licensed joint venture, along with lower channel-development revenue and fewer North American company-operated openings.
• Management highlighted several growth opportunities, including more than 2,000 North American coffeehouse uplifts, integrated delivery in the Starbucks app, personalized digital ordering, afternoon menu and beverage platforms, and approximately 1,200 net new global coffeehouses in fiscal 2027, mainly internationally.
• Starbucks plans to return capital to shareholders through its 16th consecutive annual dividend increase to $0.63 per share and approximately $1 billion in fiscal 2027 share repurchases, while maintaining an investment-grade balance sheet.

Starbucks Trading Down 1.7%

NASDAQ SBUX traded down $1.84 during trading on Friday, reaching $103.67. The company’s stock had a trading volume of 14,217,318 shares, compared to its average volume of 9,681,983. The stock has a market capitalization of $118.18 billion, a PE ratio of 46.91, a PEG ratio of 1.60 and a beta of 0.98. Starbucks has a 1-year low of $77.99 and a 1-year high of $110.51. The business has a 50-day moving average price of $99.26 and a 200-day moving average price of $99.70.

Starbucks Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Friday, November 13th will be paid a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.4%. This is a boost from Starbucks’s previous quarterly dividend of $0.62. The ex-dividend date of this dividend is Friday, November 13th. Starbucks’s dividend payout ratio (DPR) is currently 114.03%.

Trending Headlines about Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks reported fiscal fourth-quarter adjusted EPS of $0.80, above the approximately $0.72 consensus. Adjusted operating margin expanded by roughly 450 basis points to 14% as sales leverage, cost savings and lower labor-related expenses supported profitability. Starbucks posts slight revenue miss and earnings beat
• Positive Sentiment: U.S. comparable sales increased 7.7%, ahead of management’s target, helped by higher average tickets, product mix, food attachments and improving customer traffic. Management said the turnaround is transitioning into a growth plan. Starbucks strong comps driven by ticket growth
• Positive Sentiment: Analysts remain constructive, with BTIG reaffirming a Buy rating and a $115 target, while Bank of America raised its target to $141. Starbucks also plans to test AI-powered drive-through tools, renovate more than 2,000 North American stores and add about 1,200 locations globally. Analyst raises Starbucks price target
• Neutral Sentiment: Management said Starbucks could eventually become a multibrand company and sees room for substantial international and North American expansion, but acquisitions are not currently the focus. Execution on store improvements and service remains the near-term priority. Starbucks CEO discusses future acquisitions
• Negative Sentiment: Revenue fell about 4.5% to $9.14 billion, missing estimates near $9.22 billion. The decline largely reflects Starbucks’ shift of nearly 8,000 China stores to a licensed joint venture, but international comparable sales and transactions remained weak. Starbucks international business disappoints
• Negative Sentiment: Fiscal 2027 guidance calls for roughly 4% North American comparable-sales growth, below fiscal 2026’s 6.6%, while revenue is expected to decline about 1%. Fourth-quarter ticket growth outpaced transaction growth, raising concerns that future gains may rely more on pricing and larger orders than on customer visits. Starbucks margins jump as store visits slow

Insider Activity at Starbucks

In other Starbucks news, CEO Brady Brewer sold 2,229 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $105.60, for a total transaction of $235,382.40. Following the transaction, the chief executive officer owned 73,149 shares in the company, valued at $7,724,534.40. This trade represents a 2.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 6,687 shares of company stock worth $685,935. Corporate insiders own 0.03% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Weiss Ratings raised shares of Starbucks from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 16th. UBS Group reissued a “neutral” rating and set a $105.00 target price (down from $112.00) on shares of Starbucks in a research note on Thursday, October 8th. Rothschild & Co Redburn boosted their price target on shares of Starbucks from $81.00 to $82.00 and gave the stock a “sell” rating in a research report on Wednesday, September 30th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $115.00 price target (up from $110.00) on shares of Starbucks in a research note on Thursday, July 30th. Finally, Mizuho decreased their price objective on shares of Starbucks from $115.00 to $105.00 and set a “neutral” rating for the company in a report on Friday, October 23rd. Twenty-three investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $110.53.

Starbucks Company Profile

Starbucks Corporation is a global specialty coffee company headquartered in Seattle, Washington. Founded in 1971, the company operates and licenses coffeehouses under the Starbucks brand, serving brewed coffee, espresso beverages, teas, cold drinks, food, and other ready-to-consume products.

In addition to its company-operated and licensed stores, Starbucks sells packaged coffee, tea, and single-serve products through grocery retailers, convenience stores, and other distribution channels.