Starbucks Reports Afternoon Traffic Growth Amid Turnaround Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 28 2026
0mins
Source: CNBC
Starbucks Corp (SBUX) has seen its stock price decline by 3.01% as it hits a 20-day low, reflecting a challenging market environment.
The company reports a significant increase in customer traffic after 2 PM, particularly between 3 PM and 5 PM, which is seen as a validation of CEO Brian Niccol's turnaround strategy. This growth is attributed to the success of the Refreshers beverage line, which has become Starbucks' second-best-selling category after espresso, and new energy-style beverages that cater to afternoon customers. Analysts suggest that while competition intensifies, Starbucks' innovative menu and strategic marketing are crucial for maintaining customer engagement during this previously slow period.
The implications of this traffic growth are significant for Starbucks, as it indicates a successful transformation of a key daypart that could lead to increased sales and customer loyalty. However, the stock's current decline suggests that investors are cautious, possibly due to broader market conditions or concerns about sustaining this growth amid rising competition.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 99.820
Low
59.00
Averages
96.12
High
115.00
Current: 99.820
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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