Key Highlights
- Shares reached a 52-week peak of $109.45, marking a 30% gain since January
- Third-quarter fiscal 2026 earnings per share of $0.85 crushed the $0.66 consensus; sales totaled $9.32 billion versus $9.17 billion projected
- Full-year earnings guidance elevated to $2.55-$2.65 per share
- Analysts lifted targets: DA Davidson to $110, Morgan Stanley to $115, BMO Capital to $130, Evercore ISI to $120, and UBS to $112
- Chief Executive Brady Brewer offloaded 2,229 shares at $105.99 apiece on August 5th through a scheduled trading arrangement
Shares of Starbucks (SBUX) touched a fresh 52-week peak of $109.45 on August 13, currently hovering near $109.04. The coffee chain’s equity has climbed 30% since the start of the year and approximately 17% over the trailing twelve months.
This momentum stems from an impressive fiscal third-quarter 2026 performance. The Seattle-based company delivered adjusted earnings of $0.85 per share, significantly surpassing the $0.66 Wall Street projection. Top-line results hit $9.32 billion, exceeding expectations of $9.17 billion.
However, revenue declined 1.4% versus the comparable year-ago period.
Comparable store sales in the United States jumped 8%, a metric that resonated strongly with market observers. Leadership also elevated their full-year earnings per share forecast to a range of $2.55-$2.65, extending a trend of progressive upward adjustments.
Wall Street Elevates Expectations
The better-than-anticipated quarterly results prompted numerous firms to revise their price objectives upward. DA Davidson adjusted its forecast to $110. Morgan Stanley elevated its projection to $115, emphasizing the robust comparable sales figure. BMO Capital established the most optimistic target among major banks at $130. Evercore ISI settled on $120, highlighting improved margin projections and strengthening North American sales trends. UBS increased its objective from $105 to $112 while maintaining a “neutral” stance.
Among 34 firms tracking the company, 19 recommend buying, 11 suggest holding, and four advise selling. The consensus price objective stands at $109.92, marginally above current trading levels.
BTIG reaffirmed its buy recommendation and $115 objective on July 31. Jefferies maintains a bullish view as well. Scotiabank, conversely, downgraded SBUX to underperform in May.
According to InvestingPro metrics, the equity may be trading above fair value at present. The price-to-earnings multiple registers at 62.35, while the dividend payout ratio reaches 142.53%. The 50-day moving average sits at $103.24, with the 200-day average at $99.84.
Institutional Interest Intensifies
Mission Wealth Management approximately doubled its SBUX stake during the second quarter, acquiring an additional 17,336 shares to reach a total holding of 34,723, valued at approximately $3.55 million. Multiple other investment firms similarly expanded their positions throughout the quarter.
Institutional shareholders currently control 72.29% of outstanding shares.
Executive Transaction Activity
Chief Executive Brady Brewer disposed of 2,229 shares at $105.99 per share on August 5th, generating proceeds of $236,251. This transaction occurred pursuant to a predetermined Rule 10b5-1 trading arrangement. Brewer continues to hold 75,135 shares after this sale. Company insiders collectively maintain ownership of merely 0.03% of the enterprise.
The company announced a quarterly cash distribution of $0.62 per share, scheduled for payment on August 28. The ex-dividend date falls on August 14. This equates to an annual distribution of $2.48, representing approximately a 2.3% yield.
InvestingPro data indicates that 19 analysts have increased their earnings projections for the forthcoming period.
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