Starbucks (SBUX) is a global coffeehouse giant that started as a coffee bean seller and is now famed for its premium brews, cozy vibe, and iconic green siren logo. It offers espresso drinks, lattes, Frappuccinos, teas, pastries, and snacks, turning coffee into a daily ritual for millions.
Founded in 1971, it is headquartered in Seattle, Washington, with over 38,000 stores under its belt in over 80 countries.
Starbucks’ stock has shown strong momentum in early 2026. As of late January, SBUX shares are up 14.5%, with a 3% gain in the last five days and 13% in a month. Despite this, Starbucks struggles from a medium- and long-term viewpoint, with shares gaining just over 2% in six months while being 18% off its 52-week high reached in March last year.
Compared to the S&P 500 Consumer Discretionary Index ($SRCD), Starbucks easily outperforms the index in the short-term time frame, with the index reporting flat in its five-day and one-month performance report, but from a long-term perspective, the S&P ($SPX) has gained 43% in the last two years, compared to SBUX stock’s 4% in the same time.
Starbucks reported Q4 fiscal 2025 results on Oct. 29, 2025, with net revenues of $9.6 billion, up 5% year-over-year (YoY). GAAP EPS came in at $0.12, missing analyst estimates, which expected around $0.82 for adjusted EPS and $9.33-9.57 billion for revenues, due to restructuring costs and margin pressures.
Operating income dropped sharply to $308.5 million from $1.25 billion last year, with operating margin contracting to 4.5% from 18.7%. Cash reserves stood strong, supporting free cash flow amid store optimizations. Global comparable store sales rose 1% after declines, driven by international growth (3% comps). The company closed 627 stores net, totaling 40,990 locations.
Starbucks provided cautious guidance, targeting modest global comparable sales growth and mid-single-digit store expansions for fiscal 2026. The full-year outlook emphasized turnaround efforts under CEO Niccol, focusing on “Back to Starbucks” initiatives like labor investments and promotions, without precise EPS or revenue targets amid ongoing restructurings.
