Starbucks (NASDAQ:SBUX) Downgraded to Strong Sell Rating by Zacks Research

Starbucks (NASDAQ:SBUX) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

Several other brokerages have also recently weighed in on SBUX. Dbs Bank cut shares of Starbucks from a “hold” rating to a “strong sell” rating in a research report on Friday, November 7th. Sanford C. Bernstein set a $100.00 price target on shares of Starbucks and gave the stock an “outperform” rating in a report on Thursday, October 30th. Mizuho upgraded Starbucks to a “hold” rating in a report on Tuesday, October 28th. Wall Street Zen upgraded Starbucks from a “sell” rating to a “hold” rating in a research report on Saturday, November 22nd. Finally, Morgan Stanley set a $105.00 price target on Starbucks and gave the stock an “overweight” rating in a report on Monday, October 20th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $101.44.

Starbucks Price Performance

SBUX opened at $85.25 on Monday. The firm has a market capitalization of $96.94 billion, a price-to-earnings ratio of 51.98, a price-to-earnings-growth ratio of 1.78 and a beta of 0.98. The company’s 50 day simple moving average is $84.84 and its two-hundred day simple moving average is $87.40. Starbucks has a 1-year low of $75.50 and a 1-year high of $117.46.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Wednesday, October 29th. The coffee company reported $0.52 EPS for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.03). The company had revenue of $9.57 billion for the quarter, compared to analysts’ expectations of $9.41 billion. Starbucks had a negative return on equity of 31.32% and a net margin of 4.99%.The business’s quarterly revenue was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.80 EPS. On average, equities analysts anticipate that Starbucks will post 2.99 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Starbucks news, Director Jorgen Vig Knudstorp purchased 11,700 shares of the business’s stock in a transaction on Monday, November 10th. The shares were bought at an average cost of $85.00 per share, for a total transaction of $994,500.00. Following the completion of the purchase, the director directly owned 53,096 shares of the company’s stock, valued at approximately $4,513,160. This trade represents a 28.26% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.09% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Starbucks

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in shares of Starbucks by 0.5% in the third quarter. Vanguard Group Inc. now owns 113,438,902 shares of the coffee company’s stock worth $9,596,931,000 after acquiring an additional 577,279 shares in the last quarter. Capital Research Global Investors grew its stake 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 purchasing an additional 8,774,198 shares in the last quarter. Capital World Investors increased its holdings in Starbucks by 1.9% during the 3rd quarter. Capital World Investors now owns 77,720,137 shares of the coffee company’s stock worth $6,575,430,000 after purchasing an additional 1,462,874 shares during the period. State Street Corp raised its position in Starbucks by 1.2% in the 2nd quarter. State Street Corp now owns 47,513,332 shares of the coffee company’s stock valued at $4,353,647,000 after purchasing an additional 544,534 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of Starbucks by 0.4% in the 2nd quarter. Geode Capital Management LLC now owns 25,846,634 shares of the coffee company’s stock valued at $2,357,815,000 after buying an additional 99,983 shares during the period. 72.29% of the stock is owned by hedge funds and other institutional investors.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Starbucks announced a partnership with YouTube star MrBeast that aims to boost brand relevance with younger audiences and drive short?term traffic/marketing buzz. Article Title
• Positive Sentiment: News that Starbucks is positioning AI as a “co?pilot” for operations and service lifted sentiment by suggesting potential efficiency gains and labor?cost mitigation without wholesale job displacement. This narrative has supported recent intraday gains. Article Title
• Positive Sentiment: Coverage suggesting Starbucks has largely blunted unionization progress (management winning the labor battle) supports outlook for margin stability and lower near?term labor cost risk. Article Title
• Neutral Sentiment: CEO Brian Niccol is steering the brand toward a friendlier, neighborhood “coffee shop” feel — a strategic repositioning that could help traffic but will take time to show in results. Article Title
• Neutral Sentiment: Starbucks is pruning locations in major metros (less emphasis on being on every corner in NYC/LA) and, along with other chains, closed stores in 2025 — a mix of portfolio optimization and demand response. That can improve unit economics over time but signals softer traffic. Article Title
• Negative Sentiment: Technical and sentiment pieces warn SBUX has repeatedly failed breakouts, making it risky for momentum traders and pressuring the stock in the near term. Article Title
• Negative Sentiment: At least one consumer?stocks roundup lists Starbucks among names to avoid, reflecting bearish analyst commentary on growth and valuation risks (SBUX trades at a premium multiple). Article Title

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.