Wire
Bernstein Adjusts Starbucks Price Target to $110 From $100, Maintains Outperform Rating
Bernstein Adjusts Starbucks Price Target to $110 From $100, Maintains Outperform Rating
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US Markets
Equity Futures Rise Ahead of Mega-Cap Tech Earnings, Fed Decision
US equity futures were pointing higher Wednesday as traders awaited the latest quarterly results of four mega-cap technology companies and the Federal Reserve's monetary policy decision.The Nasdaq was up 0.4% before the bell, while the S&P 500 and the Dow Jones Industrial Average rose 0.1% each. The indexes closed the previous trading session in the red.Tech giants Alphabet (GOOG, GOOGL), Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META) are scheduled to release quarterly results after the markets close, while AbbVie (ABBV) and General Dynamics (GD) will post before the bell, among others.The Fed's monetary policy committee will announce its latest decision on interest rates later in the day. Markets widely expect the central bank to keep its benchmark lending rate unchanged for a third consecutive meeting. Fed Chair Jerome Powell will hold a press conference at 2:30 pm ET."Investors will be listening closely for an updated assessment of economic conditions, particularly inflation, in the wake of the ongoing conflict overseas," Stifel said in a note. "A rising level of concern could signal a willingness to hold rates steady for a prolonged period of time or even open up the possibility of a rate hike, while any mention of a temporary or expected 'transitory' impact will likely bolster expectations for a potential return to rate cuts."The Senate Banking Committee is set to vote Wednesday on Trump's nominee for the next Fed chair, Kevin Warsh, Reuters reported.Treasury yields were trending upwards in premarket action, with the two-year rate advancing 1.7 basis points to 3.86% and the 10-year rate adding one basis point to 4.36%.Wednesday's economic calendar also has the weekly mortgage applications bulletin at 7 am ET. Data on durable goods orders for March and housing starts and permits reports for February and March are out at 8:30 am. The weekly EIA domestic petroleum inventories report posts at 10:30 am.West Texas Intermediate crude oil rose 3.4% to $103.32 a barrel before the opening bell, while Brent gained 2.9% to $114.35.US President Donald Trump has told aides to prepare for an extended blockade of Iran to pressure Tehran over its nuclear program, The Wall Street Journal reported, citing US officials. Trump believes resuming strikes on Iran or ending the conflict would carry higher risks than maintaining the US blockade of Iranian ports, which began recently, the report said.Mediators in Pakistan expect to get a revised proposal from Iran to end the war in the next few days, CNN reported, citing sources.The United Arab Emirates on Tuesday said it has decided to leave the Organization of the Petroleum Exporting Countries. The move would make the cartel "structurally weaker" as the UAE is one of the few OPEC members that have spare capacity, Rystad Energy said in a note.Shares of NXP Semiconductors (NXPI) and Seagate (STX) rose 18% each before the bell following their latest quarterly results. Starbucks (SBUX) was up 4.1% as the coffee giant raised its full-year outlook late Tuesday.Robinhood Markets (HOOD) plunged 11% after its quarterly results fell short of Wall Street's estimates overnight.Gold slipped 0.6% to $4,580 per troy ounce, while bitcoin gained 1.7% to $77,547.
Dow JonesNasdaq CompositeS&P 500$ABBV$AMZN$GD$GOOG$GOOGL$HOOD$META$MSFT$NXPI$SBUX$STX
Research
Research Alert: CFRA Reiterates Sell Opinion On Shares Of Starbucks Corporation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our price target by $8 to $82, 30x our FY 27 (Sep.) EPS estimate and in line with its 10-year average forward multiple. We raise our FY 26 estimate to $2.26 from $2.21 and FY 27's to $2.74 from $2.64. Following FQ2 results that showed strong global comp growth acceleration to 6.2% (+710 bps), we reiterate our Sell opinion. Shares trade at 30x forward earnings, in line with their long-term average, suggesting the market expects this momentum through FY 27. Our model assumes SBUX meets its 5% global comp growth goal in FY 26, with margin expansion due to waning store investment costs, lower interest expenses, and improved international segment margins from the Boyu Capital China joint venture. We believe it will be difficult to sustain operating margin improvement on comp growth alone, with new store growth of just 0.8% in FQ3 potentially not inflecting higher until FY 28. At current valuation levels reflecting optimistic assumptions, we see limited upside and maintain our Sell rating.
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Research
Research Alert: Sbux: Strong Fq2 Beat On U.s. Comp Acceleration; Raises Fy 26 Guidance
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:SBUX reported Q2 FY 26 adjusted EPS of $0.50 (+22% Y/Y), beating the $0.45 consensus, while revenue of $9.53B (+8.8% Y/Y) exceeded the $9.21B estimate. Global comparable store sales growth of 6.2% Y/Y represented a significant 710-bp acceleration, due to transaction growth (+3.8%) and average ticket growth (+2.3%). We think results suggest SBUX is gaining traction with U.S. consumers following menu changes, loyalty program updates, and store location overhauls. Management raised FY 26 guidance, now expecting global and U.S. comps growth of 5%+ and EPS of $2.25-$2.45. Adjusted operating margins expanded 120 bps to 9.4%, the first expansion since Q1 FY 24, suggesting the company is exiting the higher pace of store investments from the Green Apron Service model. The China JV with Boyu Capital provides a strategic framework for growth in that market. We believe the focus on transaction over ticket growth suggests a volume-driven recovery strategy that could support longer-term market share gains.
$SBUX
US Markets
Starbucks Tops Quarterly Views, Lifts Full-Year Outlook
Starbucks' (SBUX) fiscal second-quarter results exceeded Wall Street's views, while the coffee giant raised its full-year outlook on the back of momentum in its turnaround efforts.Non-GAAP earnings rose to $0.50 per share from $0.41 a year earlier, compared with the consensus on FactSet of $0.43. Revenue increased 8.8% to $9.53 billion, higher than the Street's estimate of $9.17 billion.Global comparable sales grew 6.2% in the quarter that ended March 29, driven by transaction and average ticket gains. The US same store sales climbed 7.1%.Starbucks' shares were up 5% in after-hours trading."Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth," Chief Executive Brian Niccol said in a statement.For the current fiscal year, the company expects adjusted EPS of $2.25 to $2.45, compared with an earlier guidance of $2.15 to $2.40. Analysts are looking for $2.29.Starbucks increased its growth outlook for global and US comparable sales to at least 5% from 3% or greater previously expected."We've been clear that topline improvement would come first, with earnings growth to follow," Chief Financial Officer Cathy Smith said. "We have more work to do, but we're pleased to see the combination of our comp growth and cost discipline starting to show up in margins."The company launched its "Back to Starbucks" strategy in September 2024 to revive traffic growth and support long-term margin expansion. The company's first quarter marked the first positive comparable sales in eight quarters, Tigress Financial Partners said earlier this month.Starbucks' shares gained about 16% so far this year through Tuesday close.
$SBUX
US Markets
Stocks Mostly Down Pre-Bell as Traders Monitor Developments on US-Iran Negotiations; Fed Policy Meeting on Deck
US equity futures were mostly pointing lower on Tuesday as traders monitor developments on negotiations between the US and Iran and await the Federal Reserve's latest decision on interest rates, along with a fresh round of corporate earnings.The S&P 500 decreased 0.2% and the Nasdaq declined 0.6%, while the Dow Jones Industrial Average inclined 0.3% in premarket activity. The Nasdaq and S&P 500 finished Monday trading with new closing highs for a second consecutive session, while the Dow ended in the red.White House Press Secretary Karoline Leavitt reportedly said Monday that President Donald Trump reviewed a new proposal from Iran to reopen the crucial Strait of Hormuz with national security officials, according to Bloomberg News. Trump has made his "red lines" extremely clear with respect to Iran and will address the matter "very soon," Leavitt said.Tehran recently submitted a proposal to reopen the Strait of Hormuz and delay talks on uranium enrichment, Axios reported, citing a US official and two other sources.West Texas Intermediate crude oil rose 3.5% to $99.73 a barrel before the opening bell, while Brent gained 2.8% to $111.28.The Fed's monetary policy committee is set to kick off its meeting on interest rates today, with a decision due tomorrow. Markets widely expect the central bank to keep its benchmark lending rate unchanged for a third consecutive meeting, according to the CME FedWatch tool.With the Federal Open Market Committee's decision unlikely to surprise, the market is expected to focus on the policy statement and post-meeting remarks of Chair Jerome Powell, said David Doyle, head of economics at Macquarie Group."Given that elevated oil prices have persisted for nearly two months now, future guidance may shift somewhat," he said in a Monday report e-mailed to. "This would be in contrast to March where there were limited changes made. Our view remains that the next policy move is likely to be a hike with the most likely timing in (the first half of 2027)."Treasury yields were trending upwards in premarket action, with the two-year rate advancing 1.9 basis points to 3.82% and the 10-year rate adding 1.8 basis points to 4.35%.Coca-Cola (KO), S&P Global (SPGI), Spotify Technology (SPOT), United Parcel Service (UPS), Sherwin-Williams (SHW), Hilton Worldwide (HLT) and General Motors (GM) are scheduled to release their latest financial results before the bell, among others. Visa (V), T-Mobile US (TMUS) and Starbucks (SBUX) post earnings after the markets close.Shares of Snap (SNAP) nudged down 0.2% pre-bell after the social media company finished the previous session with a 7.3% jump. Cadence Design Systems (CDNS) moved 0.4% lower as the computational software company announced its latest quarterly results. Oracle (ORCL) fell 5.5%.Tuesday's economic calendar has the Case-Shiller Home Price Index and the Federal Housing Finance Agency House Price Index, both for February, at 9 am ET. The consumer confidence report for April is out at 10 am, along with the Richmond Fed manufacturing index for the same month.Gold dropped 1.4% to $4,626 per troy ounce, while bitcoin ticked down 0.2% to $76,604.
Dow JonesNasdaq CompositeS&P 500$CDNS$GM$HLT$KO$ORCL$SBUX$SHW$SNAP$SPGI$SPOT$TMUS$UPS$V
US Markets
Restaurant Trends Likely Slowed to Exit First Quarter, UBS Says
Strong underlying trends across the US restaurant sector likely slowed toward the end of the first quarter, with an uncertain and a weak consumer environment expected to drive conservative guidance, UBS Securities said in a note on Monday."We expect (first-quarter) results to highlight generally solid underlying trends across much of the sector, but anticipate slower trends to exit the quarter and into (the second quarter so far)," UBS analyst Dennis Geiger said in the note.Management commentary will be a key focus given the impact of holiday calendar shifts, tax rebates and elevated gas prices, Geiger said. Energy prices have spiked because of the US-Israel war with Iran that has disrupted shipments through the Strait of Hormuz, a critical shipping route."We anticipate still generally conservative (2026) guidance given above (average) uncertainty in the industry backdrop," Geiger wrote.US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday."Sentiment is unlikely to improve unless supply constraints are lifted or energy costs decline," according to the UBS note.Retail sales at restaurants and bars almost stalled sequentially in March, government data showed last week.Results across restaurants should largely be positive, especially when excluding the impacts of weather conditions, but "performance bifurcation among brands should remain reasonably wide again" during this reporting cycle, Geiger wrote.Starbucks' (SBUX) investors expect the company to lift its US same store sales target for this year following a second-quarter beat, according to UBS. Wingstop (WING) is seen lowering its comparable sales outlook after reporting a bigger-than-expected decline in the first quarter.The outlook for Cheesecake Factory (CAKE) and Chipotle Mexican Grill (CMG) will likely be maintained.Price: $98.64, Change: $-0.03, Percent Change: -0.03%
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Wire
Restaurant Stocks Trail Market Amid Soft Demand, Early Q2 Volatility, BofA Says
Restaurant stocks are trailing the broader market as Q2 gets underway, with rising gasoline prices and softer demand weighing on the group, BofA Securities said Friday in a report.Same-store sales improved in Q1 despite adverse weather, while early April trends are difficult to interpret because Easter fell earlier this year, typically slowing restaurant traffic, the report said.Higher fuel costs are squeezing budgets and margins after investors had expected stronger spending helped by tax refunds, BofA said. Restaurants showing steady customer traffic and clear earnings momentum should stand out, the report said.In coverage of 19 companies, BofA cut its price target on Chipotle Mexican Grill (CMG) stock to $50 from $53, citing adjustments to its long-term earnings model tied to recent stock volatility. The company remains a strong brand with meaningful long-term earnings potential, the report said.BofA raised its price target on Starbucks (SBUX) stock to $130 from $120. The coffee chain is working to improve store operations and customer service, and these efforts could help stabilize results and support a recovery as the year progresses, the report said.BofA boosted its price target on Restaurant Brands International (QSR) stock to $74 from $63, pointing to improvements across its major chains. Better marketing and store upgrades, particularly at Burger King, may help drive steadier sales, the report said.Chipotle shares rose 0.5% in Friday trading, Starbucks fell 0.6%, and Restaurant Brands eased 0.1%.Price: $34.10, Change: $+0.20, Percent Change: +0.58%
$CMG$QSR$SBUX
Wire
BofA Adjusts Price Target on Starbucks to $130 From $120
Starbucks (SBUX) has an average rating of overweight and mean price target of $101.69, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $98.79, Change: $-0.75, Percent Change: -0.75%
$SBUX
US Markets
Starbucks Likely to Deliver North American Comparable Sales Beat, UBS Says
Starbucks' (SBUX) North American comparable sales may exceed Wall Street's expectations for its fiscal second quarter, with the coffee giant likely to reap benefits from its strategic initiatives, UBS Securities said Tuesday in a note.Starbucks is scheduled to release its quarterly results on April 28.UBS raised its growth estimate for Starbucks' North American same-store sales to 6% from 4% amid gains in ticket and transaction. The market consensus is for an increase of 4%, according to the brokerage.Sales likely improved due to factors including menu innovation and enhanced marketing, UBS analyst Dennis Geiger wrote.The company launched its "Back to Starbucks" strategy in September 2024 to reignite traffic growth and unlock long-term margin expansion. The company's first quarter marked the first positive comparable sales in eight quarters, Tigress Financial Partners said last week.In January 2026, Starbucks guided full-year global and US same-store sales to grow at least 3%. Analysts polled by FactSet project fiscal 2026 global comparable sales to rise 3.8%.Investors are looking at the guidance possibly being raised, according to Geiger.Early this month, Starbucks formed a joint venture in China with Boyu Capital, an alternative investment firm."(Starbucks') turnaround plans and new sales initiatives should continue supporting a sales recovery," Geiger said.The stock was down 1.7% ahead of market close on Tuesday, but has rallied nearly 16% since the start of the year."We believe shares already reflect a solid (multiyear) sales and earnings recovery," Geiger said.Price: $97.86, Change: $-1.09, Percent Change: -1.10%
$SBUX
Wire
Starbucks Q2 Sales, Earnings Upside Seen on Improving US Trends, UBS Says
Starbucks' (SBUX) upcoming fiscal Q2 results are expected to show progress on initiatives to support its accelerating sales trends, with likely upside to sales, margins and earnings, UBS Securities said in a Tuesday note.The company is scheduled to report its Q2 results on April 28.UBS said it now expects Q2 North America same-store sales of 6%, up from 4% previously, compared with the consensus of 4%, and forecasts ticket growth of 1% and transaction growth of 5%.The brokerage said sales are improving with traction against strategic plans including menu innovation, new bakery lineup, continued benefits from the Green Apron Service and operational improvements, adding that it expects North America same-store sales of 5% in fiscal Q3 and 4.7% in fiscal 2026.Additionally, the investment firm said it is modeling adjusted operating margins of 8.6% for fiscal Q2, versus the consensus of 8.3%, aided by easing inflation, lapping investments and cost savings plans. For fiscal 2026, UBS expects operating margins of 10.6%.UBS has a neutral rating on the company's stock with a $100 price target.Price: $97.35, Change: $-1.60, Percent Change: -1.62%
$SBUX
Wire
Starbucks Near-Term Comps Benefit From Labor Investments, Store Closures, Longer Hours, RBC Says
Starbucks' (SBUX) near-term comps are benefitting from recent labor investments, store closures, and longer operating hours, but debate remains over the sustainability of mid-single-digit North America comps after these benefits are fully reflected in 2027, RBC Capital Markets said Thursday.RBC lifted its North America same-store-sales growth estimates to 5%, 114 basis points above Street consensus of 3.9%.While the firm's Q2 revenue estimate is only slightly behind consensus, its EBIT and EPS estimates are 4.3% and 6.0% below consensus, respectively, as it believes the Street is modeling year over year margin improvement too aggressively, according to the note.RBC said better comparable sales drove its Q2 revenue and EPS estimates 1.3% and 8.3% higher. The brokerage also lifted Q3 North America same-store-sales estimate by 100 basis points to 5% and lowered Q4 to 4% from 4.5%.For H2 and beyond, RBC lowered its estimates to account for the sale of China business, according to the note.RBC maintained a sector perform rating on Starbucks with a price target of $105.Price: $101.12, Change: $+2.76, Percent Change: +2.81%
$SBUX
US Markets
Starbucks Turnaround Strategy Delivering Results, Tigress Financial Says
Starbucks' (SBUX) turnaround efforts are delivering tangible results, as comparable sales turned positive for the first time in eight quarters in the company's fiscal first quarter, Tigress Financial Partners said Wednesday.The coffee giant launched its "Back to Starbucks" strategy in September 2024 to reignite traffic growth and unlock long-term margin expansion.The first quarter offered early evidence that the strategy is working, Tigress said in a note to clients Wednesday. In January, the company reported that revenue for the three months through December rose 5.5% year over year to $9.92 billion, surpassing the FactSet-polled consensus at the time. Global comparable store sales grew 4%."(The first quarter) marked a definitive inflection point, delivering the first US transaction growth in two years and the first positive comparable sales in eight quarters," Tigress Director of Research Ivan Feinseth said.The brokerage resumed coverage of the Starbucks stock with a buy rating and a $122 price target, saying bullish drivers include a new joint venture in China and its artificial intelligence-driven "Deep Brew" predictive inventory management platform."(Starbucks') turnaround execution, capital-efficient licensed model, historically supported multiples, and clear growth catalysts in store expansion and emerging markets will drive a reacceleration of business performance trends," Feinseth said.The company is scheduled to report second-quarter results April 28.Price: $98.83, Change: $+0.36, Percent Change: +0.37%
$SBUX
Research
Jefferies Upgrades Starbucks to Hold From Underperform, Adjusts Price Target to $92 From $86
Starbucks (SBUX) has an average rating of hold and mean price target of $100.16, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)
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