Capital World Investors Has $7.14 Billion Stock Position in Starbucks Corporation $SBUX

Key Points

• Capital World Investors increased its Starbucks stake by 9.0% in the fourth quarter, ending with 84.7 million shares worth about $7.14 billion. Starbucks now represents roughly 1% of the firm’s holdings and is its 22nd-largest position.
• Starbucks is getting mixed but generally supportive analyst coverage, with firms like Piper Sandler and Wells Fargo reaffirming overweight ratings and the stock carrying an average Moderate Buy rating with a $107.48 price target.
• The company recently beat quarterly expectations, reporting $0.50 EPS on $9.53 billion in revenue, while also raising its FY2026 EPS guidance to 2.25–2.45. However, insider selling, operational criticism around AI tools, and a high dividend payout ratio remain areas of concern.

Capital World Investors increased its holdings in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) by 9.0% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 84,727,405 shares of the coffee company's stock after purchasing an additional 7,007,268 shares during the period. Starbucks makes up about 1.0% of Capital World Investors' holdings, making the stock its 22nd biggest position. Capital World Investors owned 7.44% of Starbucks worth $7,135,228,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in SBUX. Collier Financial acquired a new stake in Starbucks during the third quarter worth approximately $25,000. Rachor Investment Advisory Services LLC acquired a new stake in Starbucks during the fourth quarter worth approximately $25,000. Y.D. More Investments Ltd acquired a new stake in Starbucks during the third quarter worth approximately $26,000. Entrust Financial LLC acquired a new stake in Starbucks during the fourth quarter worth approximately $26,000. Finally, Tucker Asset Management LLC acquired a new stake in Starbucks in the fourth quarter valued at approximately $27,000. Institutional investors and hedge funds own 72.29% of the company's stock.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Several articles frame Starbucks as a potential turnaround story, with commentary noting improving traffic, rewards growth, innovation, and margin-recovery efforts that could support a rebound. SBUX Down 9% in a Month: Is This the Right Time to Buy the Stock?
• Positive Sentiment: Starbucks is reportedly tying part of tech workers’ bonuses to AI usage, signaling management is pushing harder on productivity and technology adoption, which investors may view as a margin and efficiency positive. Starbucks (SBUX) Ties Part of Tech Bonuses to AI Usage
• Positive Sentiment: Coverage comparing Starbucks with Chipotle argued that Starbucks’ turnaround looks more credible than other beaten-down restaurant names, which can reinforce investor confidence in the stock. Chipotle vs Starbucks: One Turnaround Is Real, One Is Just Smoke
• Neutral Sentiment: One article revisited Starbucks’ long-term returns versus McDonald’s, which is more historical context than a direct catalyst for the stock. If you had invested $1,000 in McDonald’s or Starbucks 10 years ago, here’s what you’d have now
• Negative Sentiment: Headline risk remains around Starbucks’ operations, including criticism of an “unreliable” AI inventory system and a separate legal-focused article questioning whether insiders breached fiduciary duties, both of which can add pressure to sentiment. “Unreliable” AI Inventory System Gone at Starbucks, Starbucks Stock NASDAQ: SBUX Ticks Down Did Starbucks Corporation Insiders Breach their Fiduciary Duties to Shareholders?

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Piper Sandler reissued an "overweight" rating and issued a $110.00 price objective on shares of Starbucks in a research note on Wednesday, April 29th. Royal Bank Of Canada cut Starbucks from a "sector perform" rating to a "positive" rating in a research note on Thursday, May 14th. BNP Paribas Exane assumed coverage on Starbucks in a research note on Thursday, May 14th. They issued an "underperform" rating for the company. Wells Fargo & Company reissued an "overweight" rating and issued a $115.00 price objective (up from $110.00) on shares of Starbucks in a research note on Wednesday, April 29th. Finally, Dbs Bank raised Starbucks from a "strong sell" rating to a "moderate sell" rating in a research note on Friday, March 20th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $107.48.

Insiders Place Their Bets

In related news, CEO Brady Brewer sold 2,229 shares of Starbucks stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $104.81, for a total transaction of $233,621.49. Following the sale, the chief executive officer directly owned 81,559 shares in the company, valued at approximately $8,548,198.79. This trade represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sara Kelly sold 2,000 shares of Starbucks stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $105.00, for a total value of $210,000.00. Following the sale, the executive vice president owned 57,653 shares in the company, valued at $6,053,565. This trade represents a 3.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,046 shares of company stock worth $708,911 over the last quarter. 0.03% of the stock is currently owned by corporate insiders.

Starbucks Stock Up 1.2%

Shares of NASDAQ:SBUX opened at $95.29 on Friday. The stock has a market cap of $108.60 billion, a price-to-earnings ratio of 72.19, a PEG ratio of 1.88 and a beta of 0.98. Starbucks Corporation has a 12-month low of $77.99 and a 12-month high of $108.88. The business's 50 day moving average is $99.24 and its 200 day moving average is $94.10.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its earnings results on Tuesday, April 28th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.06. The company had revenue of $9.53 billion for the quarter, compared to analysts' expectations of $9.17 billion. Starbucks had a negative return on equity of 29.24% and a net margin of 3.89%.Starbucks's quarterly revenue was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.41 earnings per share. Starbucks has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, equities research analysts expect that Starbucks Corporation will post 2.42 earnings per share for the current year.

Starbucks Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were issued a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Friday, May 15th. Starbucks's dividend payout ratio (DPR) is 187.88%.

About Starbucks

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks' core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.

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