Starbucks earns a Strong Buy rating as operational improvements and strategic shifts drive accelerating comps and margin expansion. SBUX's streamlined menu, store refurbishments, and focus on coffeehouse culture have reversed declining traffic and profitability, with Q3 global comps up 7.9%. Transition to a capital-light, licensing-heavy international model, highlighted by the China JV, is materially boosting non-domestic operating margins toward 20%.
Starbucks Coffee Company announced today that it will close approximately 250 North American stores later this week.
Starbucks (NASDAQ:SBUX | SBUX Price Prediction) stock is down 13% over the past month and trades at $93.25. Still, SBUX stock is up 11% year to date, so a full year's cushion still sits underneath this month's slide.
The locations targeted either aren't delivering acceptable financial results or can't provide the kind of experience that Starbucks wants for customers and employees.
Some Americans might soon have to drive a bit further to get their favorite coffee, as Starbucks is closing hundreds of stores.
Starbucks will close about 1% of its North American cafes in the latest stage of its turnaround. For fiscal 2026, the coffee chain is now projecting net new openings of 440 cafes, down from its prior outlook.
The closures mark the second round of café cuts under CEO Brian Niccol.
Starbucks agreed on Thursday to settle a discrimination lawsuit by the state of Florida, pledging not to adopt race- or sex-based quotas or preferences in hiring, promotion and pay decisions.
The coffee giant will pay $1M and submit annual compliance certifications for four years under the agreement.
SBUX plans 600-650 net new stores in fiscal 2026, leaning on international growth, licensing and disciplined development to expand globally.
SBUX's improving traffic, margins and earnings outlook strengthen its recovery story, but a 31.02X P/E and execution risks complicate the buy case.
The latest trading day saw Starbucks (SBUX) settling at $96.52, representing a -2.57% change from its previous close.