Retail coffee chain Starbucks (SBUX) has reported mixed financial results for this year’s third quarter, although the company’s same-store sales returned to growth for the first time in almost two years.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The Seattle-based company announced earnings per share (EPS) of $0.52, which missed the $0.56 expected on Wall Street. However, revenue of $9.60 billion came in ahead of the $9.35 billion consensus expectation of analysts. Sales were up 5% from a year earlier.
Starbucks’ global same-store sales rose 1% during the quarter due largely to the company’s international markets. Its U.S. same-store sales were flat in Q3 but turned positive in September. Wall Street had been forecasting a global same-store sales decline of 0.3% and a 0.9% decrease in America.
Starbucks’ income statement. Source: Main Street Data
Turnaround Strategy
Management at Starbucks said the same-store sales growth shows that the company’s “Back to Starbucks” turnaround strategy is winning over consumers and attracting new customers. “We’re a year into our ‘Back to Starbucks’ strategy, and it’s clear that our turnaround is taking hold,” said CEO Brian Niccol in the company’s earnings statement.
During the quarter, Starbucks said that it closed a total of 627 retail locations and laid off 900 employees as part of its restructuring plan. SBUX stock rose 2% immediately after the company announced its latest financial results. So far in 2025, the company’s share price has declined 6%.
Is SBUX Stock a Buy?
The stock of Starbucks has a consensus Moderate Buy rating among 21 Wall Street analysts. That rating is based on 13 Buy, seven Hold, and one Sell recommendations issued in the last three months. The average SBUX price target of $99.16 implies 13.69% upside from current levels. These ratings could change after the company’s financial results.
