Zacks.com users have recently been watching Starbucks (SBUX) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Starbucks beat revenue, but missed non-GAAP earnings expectations. Operating margin and U.S. comp sales declined in the comparable period, exacerbating our doubts about the "Back to Starbucks" strategy. I believe SBUX remains overvalued; the "Third Place" vision is outdated in today's digital, mobile-first world, and the company's forward guidance remains suspended. Traders may profit from volatility, but long-term investors should wait until at least Q2 2026 to see if CEO Niccol's strategy delivers tangible results. We doubt it will.
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