New York, January 21, 2026, 15:24 EST — Regular session
Starbucks shares climbed roughly 2.5% to $95.99 in afternoon trading Wednesday, outpacing a wider bounce in U.S. stocks. The SPDR S&P 500 ETF increased 1.4%, while the consumer discretionary sector fund added 1.9%.
The announcement arrives just a week ahead of Starbucks’ earnings report, as investors look for signs that its turnaround is driving more consistent foot traffic and improved margins. This quarter includes the holiday period—a tricky test to see if customers stick with premium coffee or opt for cheaper alternatives.
Bank of America Securities analyst Sara Senatore bumped her price target for Starbucks to $114 from $106, maintaining a buy rating, StreetInsider reported after TheFly broke the news. A price target reflects where an analyst expects the stock to trade within the next year. (Streetinsider)
Starbucks is focused on cutting service times and streamlining both its stores and menus, all while maintaining prices in a tough market. This strategy shifts attention to store traffic and average ticket size rather than just overall sales figures.
The report carries weight because “same-store sales” — sales at outlets operating for at least a year — is the key metric traders watch when the company adjusts promotions or pricing. Even a slight miss on that front can overshadow a beat in other areas.
In October, Starbucks CEO Brian Niccol told analysts the company plans to be “judicious with price increases” in 2026, not anticipating widespread menu hikes despite ongoing pressure from coffee costs and competition. Annex Wealth Management’s chief economist Brian Jacobsen described Starbucks’ “cost structure … as challenging,” while CFO Cathy Smith cautioned that “recoveries are not linear.” (Reuters)
Yet the situation is a double-edged sword. Starbucks is priced as if it’s on track for a steady rebound, leaving little room for error. Any slip in customer traffic or margin pressure could quickly weigh on the stock.
Investors are closely monitoring any shift in expectations for China and store expansion, as well as how openly management discusses wage and commodity pressures. These factors tend to sway forecasts more than the introduction of a new drink.
Starbucks will report its first-quarter fiscal 2026 earnings at 7:45 a.m. ET on Wednesday, Jan. 28, with a conference call set for 8:00 a.m. ET. (Business Wire)
