Starbucks’ (SBUX) Outperform Rating Reiterated at Royal Bank Of Canada

Royal Bank Of Canada reiterated their outperform rating on shares of Starbucks (NASDAQ:SBUX) in a research report sent to investors on Thursday,Benzinga reports. Royal Bank Of Canada currently has a $105.00 price target on the coffee company’s stock.

Other analysts have also recently issued reports about the company. Piper Sandler decreased their price objective on Starbucks from $105.00 to $100.00 and set an “overweight” rating on the stock in a report on Thursday, October 30th. William Blair raised shares of Starbucks from a “market perform” rating to an “outperform” rating in a report on Thursday, January 22nd. New Street Research set a $90.00 price objective on Starbucks in a research note on Tuesday. Wells Fargo & Company set a $110.00 price objective on shares of Starbucks in a research note on Wednesday. Finally, Barclays reissued an “overweight” rating and issued a $110.00 price objective (up from $95.00) on shares of Starbucks in a research report on Wednesday, January 7th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $104.74.

Starbucks Stock Performance

SBUX stock opened at $91.95 on Thursday. The company’s fifty day moving average price is $88.09 and its 200-day moving average price is $87.12. Starbucks has a one year low of $75.50 and a one year high of $117.46. The company has a market capitalization of $104.76 billion, a PE ratio of 75.99, a price-to-earnings-growth ratio of 1.94 and a beta of 0.97.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings results on Wednesday, January 28th. The coffee company reported $0.56 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.03). Starbucks had a net margin of 3.63% and a negative return on equity of 28.66%. The company had revenue of $9.92 billion during the quarter, compared to the consensus estimate of $9.62 billion. During the same quarter in the prior year, the firm posted $0.69 earnings per share. The business’s revenue was up 5.5% on a year-over-year basis. Starbucks has set its FY 2026 guidance at 2.150-2.400 EPS. On average, research analysts predict that Starbucks will post 2.99 EPS for the current fiscal year.

Starbucks Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be issued a $0.62 dividend. The ex-dividend date is Friday, February 13th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.7%. Starbucks’s dividend payout ratio (DPR) is currently 204.96%.

Insiders Place Their Bets

In related news, Director Jorgen Vig Knudstorp acquired 11,700 shares of the company’s stock in a transaction that occurred on Monday, November 10th. The shares were bought at an average price of $85.00 per share, with a total value of $994,500.00. Following the completion of the transaction, the director directly owned 53,096 shares in the company, valued at $4,513,160. This trade represents a 28.26% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.09% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Starbucks

Institutional investors have recently bought and sold shares of the company. Norges Bank purchased a new position in shares of Starbucks in the 2nd quarter valued at approximately $1,246,316,000. Capital Research Global Investors lifted its position in Starbucks by 11.4% during the 3rd quarter. Capital Research Global Investors now owns 85,460,350 shares of the coffee company’s stock worth $7,229,968,000 after acquiring an additional 8,774,198 shares during the period. Corient Private Wealth LLC increased its holdings in shares of Starbucks by 146.6% in the second quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company’s stock valued at $553,201,000 after purchasing an additional 3,596,014 shares during the period. Capital International Investors increased its holdings in Starbucks by 22.5% in the 3rd quarter. Capital International Investors now owns 14,691,772 shares of the coffee company’s stock worth $1,243,104,000 after buying an additional 2,699,479 shares during the period. Finally, Ameriprise Financial Inc. increased its stake in shares of Starbucks by 80.6% in the third quarter. Ameriprise Financial Inc. now owns 5,105,164 shares of the coffee company’s stock worth $433,923,000 after acquiring an additional 2,277,792 shares during the period. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Key Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Investor Day and early-operational wins — management showcased the “Back to Starbucks” turnaround (new store designs, AI initiatives, beverage innovation) and reported revenue and comp-sales gains, evidence that traffic and transactions are improving. Starbucks Gets a Jolt After Earnings, But Will the Buzz Last?
• Positive Sentiment: Rewards relaunch to drive frequency — Starbucks announced a three-tiered Rewards program (Green, Gold, Reserve) to encourage repeat visits and personalization, which could lift transactions if adoption matches management’s plan. Starbucks Unveils Reimagined Loyalty Program to Deliver More Meaningful Value, Personalization and Engagement for Members
• Neutral Sentiment: CEO tone and public comments — Brian Niccol signaled willingness to negotiate with union organizers and discussed security and stock?price questions in media appearances; these comments reduce headline uncertainty but leave execution and labor outcomes unresolved. Starbucks CEO says he is willing to negotiate with unionizers
• Neutral Sentiment: Growth vs. guidance — management updated long?term targets (FY2028 EPS range) and reiterated growth levers; the guidance shows progress but contains mixed signals versus consensus, so investors are awaiting concrete margin improvements and forward execution. Starbucks CEO on Growth Plans, Pricing and China Market
• Negative Sentiment: Mixed earnings: EPS miss and margin pressure — Starbucks beat on revenue but missed EPS, and management warned margins remain pressured (higher input/labor costs). That combination helped pull back earlier post?earnings gains and weighs on near?term stock performance. Why Starbucks (SBUX) Shares Are Down After A Mixed Earnings Report
• Negative Sentiment: Governance/PR headwinds — a shareholder?rights law firm announced an investigation into officers/directors, and the company removed a cap on the CEO’s private jet use citing security, both creating short?term reputational and governance risk for the stock. Halper Sadeh LLC Encourages Starbucks Corporation Shareholders To Contact The Firm To Discuss Their Rights Starbucks removes cap on CEO’s use of company’s private jet, citing security concerns

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.