Starbucks Q4 Earnings Report Boosts Stock Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Should l Buy SBUX?
Source: Fool
- Stock Price Surge: Starbucks (SBUX) shares have risen 13.7% in 2026, reflecting Wall Street's positive reaction to its Q4 2025 earnings report, although the stock is still down 24% from its 2021 peak.
- Revenue Growth: The company reported a 5% increase in global revenue and same-store sales growth, along with the opening of 128 new coffeehouses, indicating potential recovery in the market, yet net income plummeted to $293.3 million, a 75% drop from historical highs.
- China Market Transformation: Starbucks has entered a joint venture with Boyu Capital for its China locations, with Boyu taking up to a 60% stake, which is expected to save Starbucks $39 million monthly in operating costs, but the impact on brand management remains uncertain.
- Membership Growth: Despite the significant drop in net income, Starbucks has increased its active membership to 35.5 million, up from 24 million at the 2021 peak, indicating improved brand loyalty, yet a high P/E ratio of 78 raises concerns for investors.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SBUX is 96.12 USD with a low forecast of 59.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 96.970
Low
59.00
Averages
96.12
High
115.00
Current: 96.970
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.
Starbucks Q4 Earnings Report Boosts Stock Price
- Stock Price Surge: Starbucks (SBUX) shares have risen 13.7% in 2026, reflecting Wall Street's positive reaction to its Q4 2025 earnings report, although the stock is still down 24% from its 2021 peak.
- Revenue Growth: The company reported a 5% increase in global revenue and same-store sales growth, along with the opening of 128 new coffeehouses, indicating potential recovery in the market, yet net income plummeted to $293.3 million, a 75% drop from historical highs.
- China Market Transformation: Starbucks has entered a joint venture with Boyu Capital for its China locations, with Boyu taking up to a 60% stake, which is expected to save Starbucks $39 million monthly in operating costs, but the impact on brand management remains uncertain.
- Membership Growth: Despite the significant drop in net income, Starbucks has increased its active membership to 35.5 million, up from 24 million at the 2021 peak, indicating improved brand loyalty, yet a high P/E ratio of 78 raises concerns for investors.
See More
Starbucks Shares Up 13.7% Year-to-Date: Is It a Buy?
- Strong Earnings Report: Starbucks reported a 5% increase in global revenue and growing same-store sales in its Q4 2025 earnings, alongside the opening of 128 new coffeehouses, indicating robust market demand, although overall performance still requires improvement.
- China Market Transformation: The agreement with Boyu Capital to convert its China locations into a joint venture, with Boyu taking up to a 60% stake, could save Starbucks $39 million monthly in operating costs, yet raises concerns about brand management and operational oversight.
- Significant Membership Growth: As of last quarter, Starbucks boasted 35.5 million active members, a substantial increase from 24 million at its peak in 2021, reflecting enhanced brand loyalty, despite a sharp decline in net income.
- Increased Valuation Risk: With a P/E ratio nearing 78, significantly above the S&P 500 average of 29.5, the market appears to have overly optimistic expectations for Starbucks' recovery, prompting investors to carefully consider their positions in the stock.
See More
Starbucks Earnings Performance and Future Strategy
- Earnings Performance Analysis: Starbucks reported a 4% year-over-year increase in global and U.S. same-store sales, with net revenue up 6%, indicating a rebound in consumer traffic, although profits fell short of analyst expectations, suggesting that their strategic initiatives may be gaining traction.
- China Market Dynamics: The company saw a 7% increase in same-store sales in China, its second-largest market, indicating a recovery in this region, particularly as it shifts to a licensing model through a joint venture with Boyu Capital, aiming to enhance its competitive edge.
- Strategic Transformation and Investment: Starbucks plans to open 600 to 650 new cafes in fiscal 2026 while closing about 400 U.S. locations, reflecting significant business adjustments as it pursues long-term growth amidst ongoing market changes.
- Market Reaction and Investor Focus: While Starbucks shows signs of financial improvement, investors must remain cautious regarding the feasibility of its long-term growth plans, especially given the high valuation and increasing market competition.
See More
Starbucks Earnings Report Analysis
- Performance Overview: Starbucks reported a 4% year-over-year increase in global and U.S. comparable store sales, indicating a rebound in consumer traffic, although profits fell short of analyst expectations with net revenue up approximately 6% year-over-year.
- China Market Dynamics: Same-store sales in China grew by 7%, marking a recovery in Starbucks' second-largest market after facing challenges, although the company is shifting to a joint venture with Boyu Capital to reduce direct investment risks.
- Strategic Transition: Starbucks is undergoing a strategic shift, planning to open 600-650 new cafes in fiscal 2026 while closing about 400 U.S. locations, demonstrating a focus on long-term growth at the expense of short-term profits.
- Investor Attention: Despite a 4% stock price increase following the earnings report, analysts remain cautious about Starbucks' future growth potential, suggesting the company needs to establish a more competitive long-term growth strategy while maintaining profitability.
See More
Starbucks Exceeds Quarterly Expectations, Significant Growth Potential Ahead
- Future Store Expansion: Starbucks plans to open an additional 5,000 stores in the U.S. over the long term, with the potential for this number to double as average unit volumes increase, reflecting the company's confidence in market demand and expansion potential.
- Global Store Network: As of Q1 FY2026, Starbucks has a total of 41,118 stores globally, including 8,011 in China, where it aims to open another 15,000 to 20,000 stores, further solidifying its leadership position in the international market.
- Cautious Opening Strategy: In response to current economic pressures, Starbucks has adopted a more deliberate store opening strategy, adding only 128 net new stores in Q1 FY2026, demonstrating the company's adaptability to changing market conditions.
- Long-Term Growth Outlook: Management provided a long-term outlook through 2028, indicating that revenue is expected to grow in line with comparable sales, suggesting that the company still has strong growth potential ahead, prompting investors to reassess their views on market saturation.
See More
Starbucks Shows Strong Recovery in Q1 2026
- Store Expansion Plans: Starbucks aims to open up to 10,000 new stores in the U.S. over the coming years, and while the current pace of openings is more cautious, this strategy will help maintain growth in a competitive market.
- Global Store Count: As of Q1 2026, Starbucks has a total of 41,118 stores worldwide, with 8,011 in China, where it plans to open an additional 15,000 to 20,000 stores, showcasing significant potential in international markets.
- Financial Performance Outlook: Management expects revenue growth to match comparable sales growth for FY 2026, reflecting the company's robust performance under economic pressure, despite only opening 128 new stores.
- Long-Term Growth Prospects: Starbucks has provided an optimistic long-term outlook through 2028, indicating strong growth potential in the global coffee market, suggesting investors should reassess their views on market saturation.
See More
Starbucks Q4 Earnings Report Boosts Stock Price
- Stock Price Surge: Starbucks (SBUX) shares have risen 13.7% in 2026, reflecting Wall Street's positive reaction to its Q4 2025 earnings report, although the stock is still down 24% from its 2021 peak.
- Revenue Growth: The company reported a 5% increase in global revenue and same-store sales growth, along with the opening of 128 new coffeehouses, indicating potential recovery in the market, yet net income plummeted to $293.3 million, a 75% drop from historical highs.
- China Market Transformation: Starbucks has entered a joint venture with Boyu Capital for its China locations, with Boyu taking up to a 60% stake, which is expected to save Starbucks $39 million monthly in operating costs, but the impact on brand management remains uncertain.
- Membership Growth: Despite the significant drop in net income, Starbucks has increased its active membership to 35.5 million, up from 24 million at the 2021 peak, indicating improved brand loyalty, yet a high P/E ratio of 78 raises concerns for investors.
See More
Starbucks Shares Up 13.7% Year-to-Date: Is It a Buy?
- Strong Earnings Report: Starbucks reported a 5% increase in global revenue and growing same-store sales in its Q4 2025 earnings, alongside the opening of 128 new coffeehouses, indicating robust market demand, although overall performance still requires improvement.
- China Market Transformation: The agreement with Boyu Capital to convert its China locations into a joint venture, with Boyu taking up to a 60% stake, could save Starbucks $39 million monthly in operating costs, yet raises concerns about brand management and operational oversight.
- Significant Membership Growth: As of last quarter, Starbucks boasted 35.5 million active members, a substantial increase from 24 million at its peak in 2021, reflecting enhanced brand loyalty, despite a sharp decline in net income.
- Increased Valuation Risk: With a P/E ratio nearing 78, significantly above the S&P 500 average of 29.5, the market appears to have overly optimistic expectations for Starbucks' recovery, prompting investors to carefully consider their positions in the stock.
See More
Starbucks Earnings Performance and Future Strategy
- Earnings Performance Analysis: Starbucks reported a 4% year-over-year increase in global and U.S. same-store sales, with net revenue up 6%, indicating a rebound in consumer traffic, although profits fell short of analyst expectations, suggesting that their strategic initiatives may be gaining traction.
- China Market Dynamics: The company saw a 7% increase in same-store sales in China, its second-largest market, indicating a recovery in this region, particularly as it shifts to a licensing model through a joint venture with Boyu Capital, aiming to enhance its competitive edge.
- Strategic Transformation and Investment: Starbucks plans to open 600 to 650 new cafes in fiscal 2026 while closing about 400 U.S. locations, reflecting significant business adjustments as it pursues long-term growth amidst ongoing market changes.
- Market Reaction and Investor Focus: While Starbucks shows signs of financial improvement, investors must remain cautious regarding the feasibility of its long-term growth plans, especially given the high valuation and increasing market competition.
See More
Starbucks Earnings Report Analysis
- Performance Overview: Starbucks reported a 4% year-over-year increase in global and U.S. comparable store sales, indicating a rebound in consumer traffic, although profits fell short of analyst expectations with net revenue up approximately 6% year-over-year.
- China Market Dynamics: Same-store sales in China grew by 7%, marking a recovery in Starbucks' second-largest market after facing challenges, although the company is shifting to a joint venture with Boyu Capital to reduce direct investment risks.
- Strategic Transition: Starbucks is undergoing a strategic shift, planning to open 600-650 new cafes in fiscal 2026 while closing about 400 U.S. locations, demonstrating a focus on long-term growth at the expense of short-term profits.
- Investor Attention: Despite a 4% stock price increase following the earnings report, analysts remain cautious about Starbucks' future growth potential, suggesting the company needs to establish a more competitive long-term growth strategy while maintaining profitability.
See More
Starbucks Exceeds Quarterly Expectations, Significant Growth Potential Ahead
- Future Store Expansion: Starbucks plans to open an additional 5,000 stores in the U.S. over the long term, with the potential for this number to double as average unit volumes increase, reflecting the company's confidence in market demand and expansion potential.
- Global Store Network: As of Q1 FY2026, Starbucks has a total of 41,118 stores globally, including 8,011 in China, where it aims to open another 15,000 to 20,000 stores, further solidifying its leadership position in the international market.
- Cautious Opening Strategy: In response to current economic pressures, Starbucks has adopted a more deliberate store opening strategy, adding only 128 net new stores in Q1 FY2026, demonstrating the company's adaptability to changing market conditions.
- Long-Term Growth Outlook: Management provided a long-term outlook through 2028, indicating that revenue is expected to grow in line with comparable sales, suggesting that the company still has strong growth potential ahead, prompting investors to reassess their views on market saturation.
See More
Starbucks Shows Strong Recovery in Q1 2026
- Store Expansion Plans: Starbucks aims to open up to 10,000 new stores in the U.S. over the coming years, and while the current pace of openings is more cautious, this strategy will help maintain growth in a competitive market.
- Global Store Count: As of Q1 2026, Starbucks has a total of 41,118 stores worldwide, with 8,011 in China, where it plans to open an additional 15,000 to 20,000 stores, showcasing significant potential in international markets.
- Financial Performance Outlook: Management expects revenue growth to match comparable sales growth for FY 2026, reflecting the company's robust performance under economic pressure, despite only opening 128 new stores.
- Long-Term Growth Prospects: Starbucks has provided an optimistic long-term outlook through 2028, indicating strong growth potential in the global coffee market, suggesting investors should reassess their views on market saturation.
See More
