Shares of Starbucks Corp (NASDAQ:SBUX) declined in Friday afternoon trading after the company reported mixed fiscal fourth-quarter results the day before.
Here are some key analyst takeaways:
- BofA Securities analyst Sara Senatore maintained a Buy rating, while raising the price target from $136 to $141.
- DA Davidson analyst Matt Curtis reiterated a Neutral rating and price target of $110.
- TD Cowen analyst Andrew Charles maintained a Buy rating and price target of $120.
Check out other analyst stock ratings.
BofA Securities: Starbucks’ underlying traffic trends continue to strengthen, driven by a healthier balance of pricing, food attachments, and delivery orders, Senatore said in a note. Margin expansion going ahead is expected to shift from general overhead savings toward longer-term efficiencies in store operations and supply chain distribution, she added.
The company has likely set its fiscal 2027 guidance for both North American same-store sales of 4% and earnings of $3.15-$3.25 per share below its internal expectations, Senatore said. This positions Starbucks well for continued beat and raise quarters, she further noted.
Da Davidson: Starbucks’ consolidated same-store sales grew 7.2%, higher than consensus of 5.6%, Curtis said. He added that the beat was drive by continued strength in North America, with US comps up 7.7% on a 5.2% increase in average ticket and a 2.4% increase in traffic.
The analyst noted that the company also continued to benefit from:
- Improved operational execution under the Green Apron Service model
- Menu innovation
- Higher Rewards engagement
- Remodels and uplifts
The high end of management’s fiscal 2028 earnings guidance range appears “aggressive,” he further stated.
TD Cowen: Starbucks guided North America same-store sales growth of around 4%, “primarily driven by ticket though with positive traffic, which is expected to be a similar cadence through the year,” Charles said.
The analyst maintained the fiscal 2027 North America same-store sales estimate above consensus, at 5%, citing:
- Starbucks launching a new “afternoon bites” food platform and expanding caffeine-free, kid-friendly beverages
- Greater engagement, with a growing 36 million active Starbucks Rewards loyalty members
- The recent closure of around 250 stores could drive a same-store sales benefit of 50 basis points
- 1,700 store remodels in 2026 and over 2,000 remodels in 2027 could contribute around 50 bps of comps
The same-store sales estimate suggests upside to the company’s adjusted earnings guidance of $3.15-$3.25 per share, he added.
SBUX Price Action: Shares of Starbucks had declined by 1.14% to $104.31 on Friday.
