TD Cowen analyst Andrew Charles has maintained their neutral stance on SBUX stock, giving a Hold rating on September 20.
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Andrew Charles has given his Hold rating due to a combination of factors influencing Starbucks’ current and future financial performance. The company is undergoing significant restructuring efforts, including a second round of layoffs and an unexpected number of store closures in North America, which are more extensive than initially anticipated. These actions are part of Starbucks’ strategy to improve financial performance and brand perception, but they also lead to a projected decline in net restaurant growth by 2025, which contrasts with previous growth estimates.
Furthermore, the restructuring efforts are expected to incur substantial costs, including severance and non-cash impairment expenses, amounting to $1 billion. While these measures are intended to streamline operations and improve long-term profitability, they also result in a downward revision of earnings per share (EPS) estimates for the fourth quarter and fiscal year 2026. Despite some positive adjustments, such as improved EBIT margins, the overall outlook remains cautious, justifying the Hold rating.
Charles covers the Consumer Cyclical sector, focusing on stocks such as McDonald’s, CAVA Group, Inc., and Starbucks. According to TipRanks, Charles has an average return of 7.7% and a 51.01% success rate on recommended stocks.
In another report released on September 20, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $87.00 price target.