Key Takeaways
- Shares reached a 52-week peak of $109.45, climbing 30% since the start of the year
- Fiscal Q3 2026 earnings per share of $0.85 exceeded analyst expectations of $0.66; sales of $9.32 billion beat forecasts of $9.17 billion
- Full-year earnings guidance elevated to a range of $2.55-$2.65 per share
- Analyst firms including DA Davidson ($110), Morgan Stanley ($115), BMO Capital ($130), Evercore ISI ($120), and UBS ($112) increased their price objectives
- Chief Executive Brady Brewer divested 2,229 shares at $105.99 apiece on August 5th through a scheduled trading arrangement
Shares of Starbucks (SBUX) peaked at $109.45 on August 13, currently changing hands near $109.04. The coffee chain’s stock has surged 30% since January and approximately 17% over the trailing twelve months.
The recent momentum stems from an impressive third-quarter fiscal 2026 financial performance. The Seattle-based company delivered adjusted earnings of $0.85 per share, substantially exceeding the Street’s $0.66 projection. Quarterly sales reached $9.32 billion, surpassing expectations of $9.17 billion.
Despite the strong performance, total revenue declined 1.4% versus the prior-year period.
Domestic comparable store sales advanced 8%, a metric that resonated positively with investors and analysts. Company leadership simultaneously boosted its annual earnings forecast to $2.55-$2.65 per share, maintaining its track record of guidance increases.
Wall Street Raises Price Objectives
The quarterly results prompted multiple firms to increase their valuation targets. DA Davidson elevated its projection to $110 per share. Morgan Stanley moved its target to $115, highlighting the comparable sales momentum. BMO Capital established the most bullish forecast at $130. Evercore ISI arrived at $120, emphasizing margin expansion potential and robust North American performance trends. UBS adjusted upward from $105 to $112 while maintaining a “neutral” stance.
Among 34 Wall Street analysts tracking Starbucks, 19 recommend buying, 11 suggest holding, and four advise selling. The consensus price objective stands at $109.92, marginally above current trading levels.
BTIG maintained its buy recommendation and $115 target on July 31. Jefferies similarly holds a buy rating. Conversely, Scotiabank moved SBUX to underperform in May.
According to InvestingPro analysis, the shares may be trading above fair value at present levels. The price-to-earnings multiple registers at 62.35, while the dividend payout ratio reaches 142.53%. The stock’s 50-day moving average sits at $103.24, with the 200-day average at $99.84.
Institutional Holdings Expand
Mission Wealth Management approximately doubled its SBUX stake during the second quarter, acquiring 17,336 additional shares to reach a total holding of 34,723 shares valued at approximately $3.55 million. Multiple other institutional investors similarly expanded positions throughout the quarter.
Institutional shareholders currently control 72.29% of outstanding shares.
Executive Share Transaction
Chief Executive Brady Brewer divested 2,229 shares at $105.99 per share on August 5th, representing $236,251 in proceeds. The transaction occurred through a predetermined Rule 10b5-1 trading arrangement. Following the sale, Brewer maintains ownership of 75,135 shares. Company insiders collectively hold merely 0.03% of total shares.
The company announced a quarterly cash dividend of $0.62 per share, scheduled for distribution on August 28. The ex-dividend date falls on August 14. This translates to an annual dividend rate of $2.48, yielding approximately 2.3%.
InvestingPro reports that 19 analysts have revised their profit projections upward for the forthcoming period.
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