Dearborn Partners LLC Buys New Holdings in Starbucks Corporation $SBUX

Key Points

• Dearborn Partners acquired a new 37,661-share stake in Starbucks during the second quarter, valued at approximately $3.37 million. Institutional investors and hedge funds collectively own 72.29% of the company.
• Starbucks exceeded quarterly expectations with earnings of $0.85 per share versus a $0.66 consensus estimate and revenue of $9.32 billion, while maintaining fiscal 2026 EPS guidance of $2.55–$2.65.
• The outlook remains mixed: seasonal promotions and analyst support are aiding the turnaround, but corporate restructuring, labor tensions and several analyst downgrades remain key risks. The stock has a consensus “Hold” rating and an average price target of $110.30.

Dearborn Partners LLC purchased a new stake in shares of Starbucks Corporation (NASDAQ:SBUX - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 37,661 shares of the coffee company's stock, valued at approximately $3,374,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in SBUX. Rachor Investment Advisory Services LLC acquired a new position in shares of Starbucks in the 4th quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new stake in Starbucks during the 4th quarter worth approximately $25,000. Phillip James Consulting Co. acquired a new stake in Starbucks during the 4th quarter worth approximately $25,000. Meeder Asset Management Inc. purchased a new position in Starbucks in the second quarter valued at approximately $25,000. Finally, Entrust Financial LLC purchased a new position in Starbucks in the fourth quarter valued at approximately $26,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Seasonal promotions are supporting the turnaround. Starbucks launched its fall menu and Pumpkin Spice Latte season, while the limited-time Unicorn Frappuccino reportedly generated the company’s highest sales weekend on record and lifted traffic 28.5% above a typical Saturday. New offerings, including the Blueberry Matcha Daily Fiber Bar, are also intended to drive visits and strengthen the “Back to Starbucks” strategy. Starbucks Unicorn Frappuccino drives biggest sales weekend ever
• Positive Sentiment: Analyst sentiment remains constructive. Baird initiated coverage with an Outperform rating and a $124 price target, implying additional upside based on expectations for improved traffic, margin recovery and continued execution of the turnaround. Starbucks has also reported better-than-expected recent earnings and maintained fiscal 2026 EPS guidance of $2.55–$2.65. Baird sees upside for Starbucks
• Neutral Sentiment: Corporate restructuring continues. Starbucks plans to eliminate more than 200 Seattle-area corporate positions and shift some roles to Nashville. The cuts could reduce costs and streamline operations, but they also highlight ongoing execution challenges and may create transition or morale risks. Starbucks is cutting more than 200 jobs
• Negative Sentiment: Labor conflict is the main near-term overhang. Starbucks Workers United is urging more than 12,000 unionized baristas and customers to boycott the chain during the Pumpkin Spice Latte launch until management reaches a contract agreement. The financial impact depends on participation, but a sustained boycott could undermine the traffic gains investors are watching and add reputational and labor costs. Starbucks union calls for boycott

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on SBUX shares. Morgan Stanley lowered shares of Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. Scotiabank cut Starbucks from a "market perform" rating to an "underperform" rating in a research note on Thursday, May 14th. Wells Fargo & Company downgraded Starbucks from an "overweight" rating to an "underweight" rating in a report on Monday, August 3rd. Royal Bank Of Canada reiterated a "sector perform" rating and set a $115.00 target price (up from $110.00) on shares of Starbucks in a research note on Thursday, July 30th. Finally, BTIG Research reaffirmed a "buy" rating and set a $115.00 target price on shares of Starbucks in a report on Friday, July 31st. Nineteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $110.30.

Starbucks Stock Down 1.6%

SBUX opened at $105.76 on Wednesday. The firm has a market cap of $120.57 billion, a PE ratio of 60.78, a P/E/G ratio of 1.86 and a beta of 0.97. The business has a fifty day simple moving average of $104.65 and a 200-day simple moving average of $100.59. Starbucks Corporation has a fifty-two week low of $77.99 and a fifty-two week high of $110.51.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its earnings results on Wednesday, July 29th. The coffee company reported $0.85 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.19. Starbucks had a net margin of 5.17% and a negative return on equity of 34.10%. The business had revenue of $9.32 billion for the quarter, compared to the consensus estimate of $9.17 billion. During the same period last year, the firm posted $0.50 earnings per share. The firm's quarterly revenue was down 1.4% compared to the same quarter last year. Starbucks has set its FY 2026 guidance at 2.550-2.650 EPS. On average, equities research analysts anticipate that Starbucks Corporation will post 2.64 EPS for the current fiscal year.

Starbucks Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, August 14th. Starbucks's payout ratio is presently 142.53%.

Insider Buying and Selling at Starbucks

In other news, CEO Brady Brewer sold 2,229 shares of the company's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $105.99, for a total transaction of $236,251.71. Following the completion of the sale, the chief executive officer owned 75,135 shares in the company, valued at approximately $7,963,558.65. This represents a 2.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,687 shares of company stock valued at $681,663 over the last ninety days. 0.03% of the stock is owned by insiders.

Starbucks Company Profile

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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