New York, January 30, 2026, 3:28 PM EST — During the regular session
Starbucks shares (SBUX) dropped roughly 2% on Friday afternoon, hovering near $92 and touching the lower end of the day’s trading range after a volatile week for the stock.
This move is crucial as Starbucks aims to show its turnaround can boost profits, not just draw customers back. Investors have demonstrated a willingness to pay for increased traffic, but they want clear evidence on margins.
Management has released fresh targets and resumed providing guidance, shifting the conversation. The stock now hinges on actual results, quarter after quarter, rather than on promises.
Starbucks reported fiscal first-quarter net revenues of $9.9 billion, up 6%, with adjusted (non-GAAP) earnings per share hitting $0.56. Global comparable store sales, tracking locations open at least a year, climbed 4%. Yet, adjusted operating margin slipped by 180 basis points to 10.1%. The company forecast fiscal 2026 adjusted EPS between $2.15 and $2.40, announced a 62-cent quarterly dividend, and noted its planned joint venture with Boyu Capital for China retail will likely close this spring, following the business being classified as “held for sale” in its filings. 1
At its investor day Thursday, Starbucks unveiled a 2028 outlook targeting an adjusted operating margin between 13.5% and 15%, with adjusted EPS ranging from $3.35 to $4.00. The company also aims for at least 5% annual net revenue growth. Cathy Smith described the plan as a roadmap to “sustainable, profitable growth.” Starbucks plans to relaunch its Rewards program on March 10, introducing a tiered structure, and laid out plans to open roughly 400 net new company-operated stores in the U.S. by fiscal 2028. 2
TD Cowen lifted its price target to $89 from $84 on Friday but stuck with a Hold rating, citing clearer visibility on earnings through 2028. Analyst Andrew Charles dubbed the stock a “momentum story,” highlighting the key question as whether stronger sales will translate into upward earnings revisions. 3
However, those targets only increased the disconnect between investor expectations and Starbucks’ current offerings. Lauren Silberman from Deutsche Bank described the earnings range as “too wide” during the investor day Q&A, according to Reuters. Brian Jacobsen of Annex Wealth Management noted the stock price is “about where it was when he became CEO.” 4
Margins remain a sticking point, drawing repeated attention from traders. Nick Setyan of Mizuho Securities emphasized that operating margins must “start improving” within the next year, following a hit from rising labor expenses and increased coffee prices. 5
Starbucks plans to report its second-quarter results, with the earnings call tentatively slated for April 28. Investors are eager for updates on the China partnership timeline and any early impacts from changes to service and loyalty programs on margins. 6
