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Key Stats for SBUX Stock
- Price Change for SBUX stock: +4.6%
- Current Share Price: $97
- 52-Week High: $117
- Starbucks Stock Price Target: $95
What Happened?
Starbucks (SBUX) stock is up 4% after the coffee giant reported fiscal third-quarter results that showed signs of progress in CEO Brian Niccol’s ambitious turnaround plan.
While Starbucks posted its sixth consecutive quarter of same-store sales declines (-2% globally), several key metrics indicated that the “Back to Starbucks” strategy is gaining traction.
The quarter delivered revenue of $9.5 billion, beating Wall Street’s $9.31 billion estimate, though adjusted earnings per share of $0.50 fell short of the $0.65 consensus.
More importantly for investors, North American same-store sales declined just 2%, better than the expected 2.5% drop, and China posted its first positive same-store sales growth (+2%) in a year and a half.
Perhaps most encouraging were the operational improvements Niccol highlighted: partner engagement scores are rising, customer connection scores are up, and non-Rewards customer transactions returned to growth for the first time since the post-pandemic recovery.
The company is accelerating its “Green Apron Service” rollout across all U.S. stores after successful pilot results, representing what Niccol called “Starbucks’ biggest investment ever in operating standards and customer service.”
See analysts’ growth forecasts and price targets for Starbucks (It’s free!) >>>
What the Market Is Telling Us About SBUX Stock
Investors in SBUX stock appear encouraged that Niccol’s turnaround plan is showing early signs of success, even though the financial results don’t yet reflect the full impact of operational changes.
The market is responding positively to concrete evidence that the company’s investments in customer service, store experience, and employee engagement are beginning to pay off.
The announcement of a $500 million investment in labor over the next year, combined with plans for significant innovation in fiscal 2026 (including protein cold foam, improved food options, and a refreshed Rewards program), suggests management is confident in the strategy’s direction.
With China returning to growth and U.S. operations showing sequential improvement, investors may be betting that Starbucks is finally turning the corner after a challenging period.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
