Starbucks (NASDAQ:SBUX) Posts Earnings Results

Starbucks (NASDAQ:SBUX) posted its earnings results on Wednesday. The coffee company reported $0.56 earnings per share for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.03), FiscalAI reports. The business had revenue of $9.92 billion during the quarter, compared to the consensus estimate of $9.62 billion. Starbucks had a negative return on equity of 31.32% and a net margin of 4.99%.The business’s quarterly revenue was up 5.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.69 earnings per share. Starbucks updated its FY 2026 guidance to 2.150-2.400 EPS.

Here are the key takeaways from Starbucks’ conference call:

• Starbucks reported a transaction-led recovery with Q1 global revenue up 5% to $9.9B, global comps +4% (U.S. comps +4 with transactions +3) and a record 35.5M 90‑day active Starbucks Rewards members — management says this validates the “Back to Starbucks” turnaround.
• Margins and EPS remain pressured: consolidated operating margin fell to 10.1% (down 180 bps), North America margins contracted ~420 bps, and Q1 EPS was $0.56, down 19%, driven by investments and product/distribution inflation.
• Starbucks announced a strategic joint venture in China with Boyu (Boyu to acquire up to 60%, Starbucks retains 40%); China retail ops are now held for sale, will deconsolidate on close (expected spring), and management expects a ~$0.02–$0.03 EPS dilution for the transaction.
• Fiscal 2026 outlook shows confidence: guidance of ≥3% global comps, 600–650 net new stores (450–500 international, China ~half), EPS $2.15–$2.40, plus a targeted ~$2B cost-savings program and a new CTO hire to accelerate tech and digital initiatives.

Starbucks Trading Down 0.6%

NASDAQ:SBUX opened at $95.16 on Thursday. Starbucks has a twelve month low of $75.50 and a twelve month high of $117.46. The company has a market cap of $108.21 billion, a price-to-earnings ratio of 58.02, a price-to-earnings-growth ratio of 1.94 and a beta of 0.97. The stock has a fifty day simple moving average of $87.73 and a 200-day simple moving average of $87.12.

Starbucks Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Friday, February 13th will be paid a $0.62 dividend. The ex-dividend date is Friday, February 13th. This represents a $2.48 dividend on an annualized basis and a yield of 2.6%. Starbucks’s dividend payout ratio (DPR) is presently 151.22%.

Insider Activity at Starbucks

In related news, Director Jorgen Vig Knudstorp purchased 11,700 shares of Starbucks stock in a transaction that occurred on Monday, November 10th. The shares were bought at an average price of $85.00 per share, with a total value of $994,500.00. Following the purchase, the director directly owned 53,096 shares of the company’s stock, valued at approximately $4,513,160. This represents a 28.26% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.09% of the company’s stock.

Hedge Funds Weigh In On Starbucks

A number of hedge funds have recently added to or reduced their stakes in SBUX. 44 Wealth Management LLC increased its position in shares of Starbucks by 5.4% during the second quarter. 44 Wealth Management LLC now owns 3,675 shares of the coffee company’s stock worth $337,000 after acquiring an additional 188 shares during the period. Rakuten Securities Inc. grew its stake in Starbucks by 55.1% in the second quarter. Rakuten Securities Inc. now owns 549 shares of the coffee company’s stock worth $50,000 after purchasing an additional 195 shares in the last quarter. FSB Premier Wealth Management Inc. increased its holdings in Starbucks by 2.3% during the 2nd quarter. FSB Premier Wealth Management Inc. now owns 8,999 shares of the coffee company’s stock worth $825,000 after purchasing an additional 205 shares during the period. WCG Wealth Advisors LLC raised its position in Starbucks by 0.7% during the 3rd quarter. WCG Wealth Advisors LLC now owns 33,122 shares of the coffee company’s stock valued at $2,802,000 after purchasing an additional 215 shares in the last quarter. Finally, HUB Investment Partners LLC raised its position in Starbucks by 1.4% during the 2nd quarter. HUB Investment Partners LLC now owns 17,061 shares of the coffee company’s stock valued at $1,563,000 after purchasing an additional 241 shares in the last quarter. 72.29% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages have weighed in on SBUX. Guggenheim reissued a “buy” rating and set a $90.00 price objective on shares of Starbucks in a research note on Monday. Zacks Research raised Starbucks from a “strong sell” rating to a “hold” rating in a research report on Tuesday. Wall Street Zen upgraded Starbucks from a “sell” rating to a “hold” rating in a report on Saturday, November 22nd. Bank of America lifted their price objective on shares of Starbucks from $106.00 to $114.00 and gave the stock a “buy” rating in a research note on Wednesday, January 21st. Finally, Evercore ISI reiterated an “outperform” rating on shares of Starbucks in a research report on Wednesday. Eighteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Starbucks has a consensus rating of “Moderate Buy” and an average target price of $103.50.

Key Stories Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Q1 top‑line beat and comps rebound — Revenue of $9.92B topped estimates and global comparable‑store sales rose ~4%, including the first U.S. transaction growth in two years, evidence the “Back to Starbucks” initiatives are driving traffic. Starbucks Reports Q1 Fiscal Year 2026 Results
• Positive Sentiment: Digital and operations momentum — Management emphasized digital platforms and technology fixes (mobile order flow, staffing mixes, AI tools) as central to sustaining the turnaround and improving throughput/transactions. This supports revenue durability if execution continues. Starbucks Says Digital Platforms Are Key Piece of Turnaround Strategy
• Positive Sentiment: Investor day as a near‑term catalyst — Starbucks is hosting an investor day to lay out a long‑term outlook and milestones for the turnaround; that presentation could provide fresh guidance or visibility that moves the stock. Starbucks to unveil long-term outlook at investor day, as Niccol says turnaround is just beginning
• Neutral Sentiment: Guidance and valuation nuance — FY‑2026 EPS guide (2.15–2.40) leaves room vs. consensus and analysts are split; some raised targets (e.g., Mizuho), others warn margins could lag while investments run. The range creates more catalyst dependence on execution. Mizuho Boosts Starbucks (NASDAQ:SBUX) Price Target to $95.00
• Negative Sentiment: EPS miss and margin pressure — EPS of $0.56 missed estimates while net margin remains under pressure as the company re‑invests in stores and staffing; investors should watch margin progression vs. revenue gains. Starbucks (SBUX) Misses Q1 Earnings Estimates
• Negative Sentiment: Governance/optics risks — The company removed the $250k cap on CEO Niccol’s personal use of the corporate jet (cited for security) and a shareholder‑law firm launched a probe into director conduct; both create short‑term reputational and potential legal noise. Starbucks removes cap on CEO’s use of company’s private jet, citing security concerns Legal Investigation Launched: Johnson Fistel Scrutinizes Starbucks (SBUX) Directors

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.