Jefferies Adjusts Starbucks Corporation (NASDAQ:SBUX) Price Target

Starbucks Corporation (NASDAQ:SBUX) is a global coffeehouse chain known for its premium coffee and customer experience. As of April 29, 2025, Guggenheim's Gregory Francfort set a price target of $83 for SBUX, while the stock traded at $84.85. This reflects a -2.18% difference from the target, as highlighted by Benzinga. Concerns include competition, rising costs, and global tensions.

Guggenheim's Francfort maintains a Neutral rating on Starbucks, lowering the price target from $95 to $83. Starbucks' recent financial results show revenue of $8.76 billion, missing the $8.86 billion estimate. Adjusted EPS was $0.41, below the $0.50 consensus. Despite a 2% increase in net revenue, global comparable store sales fell by 1%.

Starbucks faces increased competition from local brands like CHA, impacting its market position. The ongoing trade war and potential resistance to U.S. brands add to the challenges. Consequently, forecasts for margin expansion have been revised. The 2027 EBIT margins are now expected to improve by 150 basis points over 2025, down from the previous 270 basis points forecast.

The current stock price of $84.85 reflects a 1.13% increase. The stock has traded between $83.20 and $85.07 today. Over the past year, it reached a high of $117.46 and a low of $71.55. Starbucks' market capitalization stands at approximately $96.38 billion, with a trading volume of 12,015,174 shares on the NASDAQ.

• UBS maintains a Neutral rating on Starbucks Corporation (NASDAQ:SBUX), adjusting the price target from $105 to $90.
• Starbucks is expected to report a decrease in earnings per share to 48 cents from 68 cents in the same quarter last year, despite an increase in quarterly revenue to $8.83 billion.
• The company offers an annual dividend yield of 2.91%, with strategies for earning from Starbucks dividends detailed for investors.

Starbucks Corporation (NASDAQ:SBUX), a leading name in the global coffeehouse sector, is renowned for its premium coffee and diverse menu offerings. Competing with giants like Dunkin' and McDonald's, Starbucks remains a significant player in the coffee industry. On April 29, 2025, UBS updated its rating for Starbucks to Neutral, maintaining a hold action, with the stock priced at $84.09.

Starbucks is poised to unveil its second-quarter earnings results after the market closes on April 29. Analysts are forecasting earnings of 48 cents per share, a decrease from 68 cents per share in the corresponding period last year. Despite this anticipated decline, the company is projected to report an increase in quarterly revenue to $8.83 billion, up from $8.56 billion a year earlier.

UBS analyst Dennis Geiger has maintained a Neutral rating on Starbucks but revised the price target from $105 to $90. This adjustment mirrors a cautious stance on the stock's near-term performance. The current stock price stands at $83.43, marking a slight decrease of 0.56% or $0.47, with fluctuations between $83.20 and $84.58 during the trading day.

For those focused on dividends, Starbucks presents an annual dividend yield of 2.91%, translating to a quarterly dividend of 61 cents per share, or $2.44 annually. To generate $500 monthly from Starbucks dividends, an investment of approximately $206,310, or around 2,459 shares, is required. Conversely, a monthly income of $100 necessitates an investment of $41,279, or about 492 shares.

Starbucks boasts a market capitalization of roughly $94.77 billion, with a trading volume of 4,461,075 shares on the NASDAQ exchange. Over the past year, the stock has oscillated between a high of $117.46 and a low of $71.55, showcasing significant volatility.

Starbucks Corporation, listed as NASDAQ:SBUX, is a global coffeehouse chain known for its premium coffee and beverages. As it gears up to release its quarterly earnings on April 29, 2025, analysts predict an earnings per share (EPS) of $0.49 and revenue of approximately $8.85 billion. This release is crucial as investors look for signs of a stock rebound amidst a 10% year-to-date decline.

The company's shares have dropped 28% from their 52-week high of $117, raising concerns among investors. Analysts are particularly focused on the impact of higher tariffs and slower global same-store sales, especially in China. Despite these challenges, Starbucks' sales for the second quarter are projected to reach $8.79 billion, a 2% increase from the previous year's $8.56 billion.

International revenue is expected to grow by 5%, reaching $1.84 billion compared to $1.75 billion in the prior year. This growth is attributed to net new company-operated store openings and a streamlined menu. Starbucks' operational excellence is also anticipated to play a significant role in shaping its quarterly results.

The Zacks Consensus Estimate for the upcoming quarter's EPS has been revised downward from 52 cents to 49 cents, indicating a 27.9% decrease compared to the previous year's 68 cents per share. Despite this, the consensus estimate for revenues reflects a 2.6% increase from the same quarter last year, highlighting the company's resilience in a challenging market.

Starbucks' financial metrics provide further insight into its current standing. The company has a price-to-earnings (P/E) ratio of approximately 27.04, and a price-to-sales ratio of about 2.63. Its enterprise value to sales ratio is around 3.25, while the enterprise value to operating cash flow ratio is approximately 20.30. The debt-to-equity ratio is notably negative at -3.46, and the current ratio is approximately 0.75, suggesting potential liquidity challenges.

Starbucks Corporation, listed on NASDAQ as SBUX, is a global leader in the premium coffee market, operating over 40,000 locations worldwide. The company is known for its specialty coffee and beverages, and it competes with other major coffee chains like Dunkin' and McDonald's. Starbucks has a strong brand presence and continues to expand its global footprint.

On January 28, 2025, Starbucks reported earnings per share (EPS) of $0.69, slightly above the estimated $0.68. This performance also exceeded the Zacks Consensus Estimate of $0.66, marking a 4.55% surprise. However, this is a decrease from the $0.90 EPS reported a year ago, indicating some challenges in maintaining previous profit levels.

Starbucks' revenue for the quarter was approximately $9.4 billion, surpassing the estimated $9.3 billion. This figure was slightly above the Zacks Consensus Estimate by 1.02%, but it represents a small decline from the $9.43 billion reported in the same quarter the previous year. Despite these positive results, the company faced a 4% decline in global comparable store sales, highlighting ongoing challenges in the market.

The company's financial ratios provide insight into its valuation and financial health. Starbucks has a price-to-earnings (P/E) ratio of about 30.36, indicating that investors are willing to pay over 30 times the company's earnings. The price-to-sales ratio is around 3.15, suggesting that investors pay $3.15 for every dollar of sales. The enterprise value to sales ratio is approximately 3.77, reflecting the company's total valuation relative to its sales.

Starbucks' debt-to-equity ratio is negative at approximately -3.46, which may indicate a higher level of debt compared to equity. The current ratio is about 0.75, suggesting potential liquidity concerns as the company has less than one dollar in current assets for every dollar of current liabilities. Despite these challenges, BTIG managing director Peter Saleh describes Starbucks as being in the "early innings" of a turnaround story, indicating potential for further growth and development.

• Citigroup maintains a "Buy" rating for Starbucks Corporation (NASDAQ:SBUX) with a stock price of $99.51 and a consensus price target of $106.
• Starbucks to implement new policies to address a 5% decline in North American transactions, aiming to improve customer experience and boost sales.
• Despite anticipated declines in financial performance, Starbucks receives a "buy" rating from more than half of the analysts, with a market capitalization of approximately $113.4 billion.

Starbucks Corporation (NASDAQ:SBUX) is a global coffeehouse chain known for its specialty coffee and beverages. The company operates thousands of stores worldwide, offering a variety of products including coffee, tea, and food items. Starbucks faces competition from other coffee chains like Dunkin' and McDonald's, which also offer similar products. Despite the competitive landscape, Starbucks remains a dominant player in the coffee industry.

On January 27, 2025, Citigroup maintained its "Buy" rating for Starbucks, suggesting that investors hold onto their shares. At that time, the stock was priced at $99.51. This recommendation comes as Starbucks prepares to release its first-quarter earnings report, with analysts predicting a decline in both revenue and earnings. Despite these challenges, the stock has a consensus price target of $106, indicating potential growth.

Starbucks is implementing new policies to address a 5% decline in North American transactions in 2024. Starting Monday, only paying customers or their guests can use the company's facilities, reversing a 2018 policy. This change aims to improve customer experience and boost sales. Analysts expect a 4.8% decrease in same-store sales, with earnings per share projected at $0.67 and revenue at $9.32 billion.

Despite the anticipated decline in financial performance, more than half of the analysts covering Starbucks have given it a "buy" rating. Jefferies analysts have noted challenges in product innovation, but investor optimism remains. Of the 16 analysts, 10 have issued a "buy" rating, while four have given a "hold" rating, and two have opted for a "sell." The stock's recent price increase to $100.02 reflects this positive sentiment.

Starbucks' market capitalization stands at approximately $113.4 billion, with a trading volume of 8,775,779 shares. The stock has traded between $98.10 and $100.33 today, with a 52-week high of $103.32 and a low of $71.55. As Starbucks prepares to announce its earnings, investors are closely watching for any signs of recovery or further challenges.

Starbucks (NASDAQ:SBUX) reported fourth-quarter results that fell short of analyst expectations, leading to a more than 1% drop in shares intra-day today. The coffee chain’s earnings and revenue both declined as it grappled with challenges in customer experience and reduced store traffic.

For Q4, Starbucks posted adjusted earnings per share of $0.80, below the expected $1.03, while revenue came in at $9.07 billion, missing the forecasted $9.38 billion and marking a 3% year-over-year decline. Global comparable store sales fell 7%, driven by an 8% decrease in transactions, though partially offset by a 2% rise in the average ticket price.

In North America, comparable store sales decreased 6%, with transactions dropping 10% but a 4% boost in average ticket size.

• Starbucks Corporation (NASDAQ:SBUX) reported earnings per share (EPS) of $0.80, missing the expected $1.02, and revenue of $9.1 billion, below the estimated $9.37 billion.
• The company is undergoing a strategic shift to refocus on its core offerings amidst disappointing global comparable store sales.
• Despite financial challenges, Starbucks maintains a price-to-earnings (P/E) ratio of 27.1 and a price-to-sales ratio of 3.03, indicating continued investor confidence.

Starbucks Corporation, listed as NASDAQ:SBUX, is a global coffeehouse chain known for its specialty coffee and beverages. The company operates thousands of stores worldwide, offering a variety of products including coffee, tea, and food items. Starbucks competes with other major coffee brands like Dunkin' and McDonald's in the fast-food and beverage industry.

On October 30, 2024, Starbucks reported earnings per share (EPS) of $0.80, which was below the expected $1.02. The company's revenue for the period was $9.1 billion, also missing the estimated $9.37 billion. This shortfall in earnings and revenue has raised concerns among investors and analysts about the company's financial health and future prospects.

Adding to the company's challenges, Bragar Eagel & Squire, P.C., a shareholder rights law firm, is investigating Starbucks on behalf of its long-term stockholders. This investigation follows a class action complaint filed on August 28, 2024, covering a class period from November 2, 2023, to April 30, 2024. The focus is on whether Starbucks' board of directors breached their fiduciary duties.

Starbucks is also undergoing a strategic shift, aiming to refocus on its core offerings and streamline operations. This move comes as the company faces disappointing global comparable store sales, which could further impact its financial performance. Investors are weighing their options on whether to buy, sell, or hold Starbucks stock amid these challenges.

Despite these issues, Starbucks has a price-to-earnings (P/E) ratio of 27.1, indicating the market's valuation of its earnings. The company's price-to-sales ratio is 3.03, and its enterprise value to sales ratio is 3.63, reflecting investor confidence in its revenue and sales. However, the negative debt-to-equity ratio of -2.14 and a current ratio of 0.89 suggest potential financial risks.