Is Wall Street Bullish or Bearish on Starbucks’ Stock?

Valued at a market cap of $120.3 billion, Starbucks Corporation (SBUX) is a global specialty coffee retailer, roaster, and marketer headquartered in Seattle, Washington. The company operates more than 41,000 company-operated and licensed coffeehouses across approximately 90 markets worldwide. Its product portfolio includes handcrafted coffee, espresso beverages, teas, refreshers, pastries, sandwiches, and packaged coffee products.

This coffee retailer has outperformed the broader market over the past 52 weeks. Shares of SBUX have gained 24.7% over this time frame, while the broader S&P 500 Index ($SPX) has soared 11.1%. Moreover, on a YTD basis, the stock is up 23.1%, outpacing SPX's 10.7% rise.

More News from Barchart

• What to Expect From AMD's Q3 Earnings

• SpaceX Reportedly Faces Higher Borrowing Costs on Its $40 Billion GPU Deal. What It Means for SPCX Stock.

• ASML vs. Applied Materials: One Is Growing Twice as Fast, but I'd Buy The Other Instead

• Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.

Narrowing the focus, SBUX has also outpaced the State Street Consumer Discretionary Select Sector SPDR ETF's (XLY) 1.3% downtick over the past 52 weeks and 3.4% YTD drop.

Starbucks delivered its fiscal 2027 fourth-quarter 2026 results on Oct. 29, with its turnaround strategy gaining traction through improving customer traffic, stronger comparable sales, and significant margin expansion. Revenue fell 4.5% year over year to $9.14 billion. Profitability improved considerably, with adjusted EPS jumping 53.8% to $0.80, comfortably exceeding analysts' expectations of $0.73. The improvement reflected stronger sales leverage, lower restructuring expenses, and ongoing cost-saving initiatives.

Global comparable sales increased 7.2%, marking the company's fifth consecutive quarter of positive growth. North America led the recovery, with comparable sales climbing 7.9%, supported by a 2.4% increase in transactions and a 5.2% rise in average ticket. Starbucks Rewards also reached a record 36 million active 90-day members, highlighting stronger customer engagement. Looking ahead, Starbucks expects its turnaround to continue in fiscal 2027, targeting approximately 4% North American comparable sales growth and adjusted EPS of $3.15 to $3.25. The company also plans to add approximately 1,200 net stores globally and invest in more than 2,000 coffeehouse upgrades. Investors seemed impressed and sent its shares up 2.2% after the announcement.