Starbucks (NASDAQ:SBUX) Releases Earnings Results, Misses Expectations By $0.03 EPS

Starbucks (NASDAQ:SBUX) issued its quarterly earnings data on Wednesday. The coffee company reported $0.56 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by ($0.03), FiscalAI reports. 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 analysts’ expectations of $9.62 billion. During the same quarter last year, the firm posted $0.69 earnings per share. The firm’s quarterly revenue was up 5.5% on a year-over-year basis. Starbucks updated its FY 2026 guidance to 2.150-2.400 EPS.

Here are the key takeaways from Starbucks’ conference call:

• Starbucks reported a transaction-led recovery with Q1 global revenue up 5% to $9.9B, global comps +4% (U.S. comps +4 with transactions +3) and a record 35.5M 90‑day active Starbucks Rewards members — management says this validates the “Back to Starbucks” turnaround.
• Margins and EPS remain pressured: consolidated operating margin fell to 10.1% (down 180 bps), North America margins contracted ~420 bps, and Q1 EPS was $0.56, down 19%, driven by investments and product/distribution inflation.
• Starbucks announced a strategic joint venture in China with Boyu (Boyu to acquire up to 60%, Starbucks retains 40%); China retail ops are now held for sale, will deconsolidate on close (expected spring), and management expects a ~$0.02–$0.03 EPS dilution for the transaction.
• Fiscal 2026 outlook shows confidence: guidance of ≥3% global comps, 600–650 net new stores (450–500 international, China ~half), EPS $2.15–$2.40, plus a targeted ~$2B cost-savings program and a new CTO hire to accelerate tech and digital initiatives.

Starbucks Trading Down 1.3%

Starbucks stock opened at $93.88 on Friday. The company has a fifty day simple moving average of $87.96 and a 200-day simple moving average of $87.17. The stock has a market cap of $106.75 billion, a P/E ratio of 77.59, a price-to-earnings-growth ratio of 1.98 and a beta of 0.97. Starbucks has a 12-month low of $75.50 and a 12-month high of $117.46.

Starbucks Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, February 13th will be given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, February 13th. Starbucks’s payout ratio is 151.22%.

More Starbucks News

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: Q1 revenue and traffic beat — Starbucks reported $9.92B in revenue, global comparable-store sales rose ~4% with the U.S. posting its first transaction growth in two years, signalling early traction on the “Back to Starbucks” turnaround. Starbucks Gets a Jolt After Earnings, But Will the Buzz Last?
• Positive Sentiment: Rebuilt loyalty program — Starbucks will relaunch a three-tier U.S. Rewards structure (Green/Gold/Reserve) on March 10 to drive frequency and personalization; this is designed to increase visits and spend per member. Starbucks Unveils Reimagined Loyalty Program
• Positive Sentiment: Investor Day strategy — management outlined store redesigns, AI-driven customization, beverage innovation and plans to open new U.S. stores, supporting a long‑term growth and digital engagement thesis. Starbucks Investor/Analyst Day Transcript
• Neutral Sentiment: Analyst reactions mixed — some firms (RBC/BTIG) reaffirmed bullish views and $105 price targets, while others remain cautious (UBS hold), reflecting differing views on execution risk vs. growth potential. Benzinga Analyst Notes
• Negative Sentiment: EPS miss and profitability pressure — EPS of $0.56 missed estimates (~$0.59) and margins remain pressured as the company prioritizes staffing, store experience and digital investments. Q1 2026 Earnings Call Highlights
• Negative Sentiment: Forward guidance and valuation — FY2026 EPS guide was modest and Starbucks updated FY2028 EPS to 3.350–4.000 (below some consensus points), while the stock trades at a premium multiple, leaving limited upside unless margins recover.
• Negative Sentiment: Governance/legal overhangs and optics — shareholder-law firms (Halper Sadeh, Johnson Fistel) have opened inquiries and the company drew negative attention for loosening limits on CEO aircraft use; these issues add short-term headline risk. Halper Sadeh LLC Notice

Insider Transactions at Starbucks

In other Starbucks news, Director Jorgen Vig Knudstorp acquired 11,700 shares of the stock in a transaction dated Monday, November 10th. The stock was acquired at an average cost of $85.00 per share, with a total value of $994,500.00. Following the transaction, the director owned 53,096 shares in the company, valued at $4,513,160. The trade was a 28.26% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.09% of the stock is owned by company insiders.

Institutional Trading of Starbucks

Institutional investors and hedge funds have recently made changes to their positions in the company. Corient Private Wealth LLC grew its stake in Starbucks by 146.6% during the 2nd quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company’s stock worth $553,201,000 after buying an additional 3,596,014 shares during the last quarter. Raymond James Financial Inc. lifted its stake in Starbucks by 1.6% in the third quarter. Raymond James Financial Inc. now owns 3,855,512 shares of the coffee company’s stock valued at $326,177,000 after buying an additional 59,289 shares during the last quarter. California State Teachers Retirement System boosted its holdings in shares of Starbucks by 0.6% in the third quarter. California State Teachers Retirement System now owns 1,822,190 shares of the coffee company’s stock valued at $154,157,000 after acquiring an additional 10,531 shares during the period. CANADA LIFE ASSURANCE Co grew its position in shares of Starbucks by 1.6% during the third quarter. CANADA LIFE ASSURANCE Co now owns 1,290,004 shares of the coffee company’s stock worth $110,454,000 after acquiring an additional 20,936 shares during the last quarter. Finally, Canada Pension Plan Investment Board increased its holdings in shares of Starbucks by 50.2% in the 2nd quarter. Canada Pension Plan Investment Board now owns 1,250,567 shares of the coffee company’s stock valued at $114,589,000 after acquiring an additional 417,815 shares during the period. 72.29% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on SBUX shares. Dbs Bank downgraded shares of Starbucks from a “hold” rating to a “strong sell” rating in a report on Friday, November 7th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Starbucks in a research note on Thursday, October 30th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $113.00 target price on shares of Starbucks in a research note on Thursday. Royal Bank Of Canada restated an “outperform” rating and set a $105.00 target price on shares of Starbucks in a report on Thursday. Finally, Guggenheim reissued a “buy” rating and set a $90.00 price target on shares of Starbucks in a research report on Monday. Nineteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $104.44.

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.