William Blair Increases Earnings Estimates for Starbucks

Key Points

• William Blair raised its FY2026 EPS estimate for Starbucks to $2.37 per share, which is slightly up from the previous estimate of $2.36.
• Starbucks reported a $0.50 EPS for the last quarter, missing the consensus estimate of $0.64 by $0.14, but exceeding revenue expectations with $9.46 billion.
• The stock currently has a consensus rating of "Moderate Buy" with a target price of $104.40, reflecting mixed sentiments from analysts.

Starbucks Corporation (NASDAQ:SBUX - Free Report) - Investment analysts at William Blair lifted their FY2026 EPS estimates for Starbucks in a research note issued to investors on Tuesday, August 19th. William Blair analyst S. Zackfia now expects that the coffee company will post earnings of $2.37 per share for the year, up from their previous estimate of $2.36. The consensus estimate for Starbucks' current full-year earnings is $2.99 per share.

Starbucks (NASDAQ:SBUX - Get Free Report) last posted its earnings results on Tuesday, July 29th. The coffee company reported $0.50 EPS for the quarter, missing the consensus estimate of $0.64 by ($0.14). The firm had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.29 billion. Starbucks had a negative return on equity of 36.23% and a net margin of 7.18%.Starbucks's revenue for the quarter was up 3.8% on a year-over-year basis. During the same quarter last year, the company posted $0.93 EPS.

A number of other research analysts have also issued reports on SBUX. Barclays boosted their price target on Starbucks from $106.00 to $115.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Wells Fargo & Company upped their price objective on shares of Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. UBS Group increased their target price on shares of Starbucks from $95.00 to $100.00 and gave the company a "neutral" rating in a research report on Wednesday, July 30th. JPMorgan Chase & Co. boosted their price target on shares of Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Finally, Wall Street Zen cut shares of Starbucks from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $104.40.

Starbucks Price Performance

Shares of SBUX stock opened at $88.56 on Friday. Starbucks has a 12-month low of $75.50 and a 12-month high of $117.46. The firm has a market capitalization of $100.67 billion, a price-to-earnings ratio of 38.17, a price-to-earnings-growth ratio of 5.31 and a beta of 1.02. The business has a 50 day simple moving average of $92.59 and a 200 day simple moving average of $93.70.

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be paid a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $2.44 annualized dividend and a dividend yield of 2.8%. Starbucks's dividend payout ratio (DPR) is currently 105.17%.

Institutional Investors Weigh In On Starbucks

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Saratoga Research & Investment Management lifted its stake in Starbucks by 0.4% during the second quarter. Saratoga Research & Investment Management now owns 510,482 shares of the coffee company's stock valued at $46,775,000 after buying an additional 1,996 shares in the last quarter. B. Riley Wealth Advisors Inc. acquired a new stake in shares of Starbucks during the second quarter valued at approximately $2,704,000. Cape Investment Advisory Inc. lifted its position in shares of Starbucks by 2.9% in the 2nd quarter. Cape Investment Advisory Inc. now owns 14,559 shares of the coffee company's stock valued at $1,334,000 after acquiring an additional 405 shares in the last quarter. Advisory Services Network LLC boosted its stake in Starbucks by 16.4% in the 2nd quarter. Advisory Services Network LLC now owns 65,505 shares of the coffee company's stock worth $5,840,000 after purchasing an additional 9,243 shares during the period. Finally, Asset Dedication LLC grew its position in Starbucks by 24.4% during the 2nd quarter. Asset Dedication LLC now owns 14,252 shares of the coffee company's stock worth $1,306,000 after purchasing an additional 2,792 shares in the last quarter. 72.29% of the stock is owned by institutional investors and hedge funds.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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