Equities Analysts Set Expectations for Starbucks Q1 Earnings

Starbucks Co. (NASDAQ:SBUX) – Equities researchers at Zacks Research dropped their Q1 2025 EPS estimates for Starbucks in a note issued to investors on Wednesday, November 20th. Zacks Research analyst H. Ray now expects that the coffee company will post earnings per share of $0.70 for the quarter, down from their previous forecast of $0.86. The consensus estimate for Starbucks’ current full-year earnings is $3.15 per share. Zacks Research also issued estimates for Starbucks’ Q2 2025 earnings at $0.61 EPS, Q3 2025 earnings at $0.88 EPS, Q4 2025 earnings at $0.91 EPS, Q1 2026 earnings at $0.80 EPS, Q2 2026 earnings at $0.70 EPS, Q3 2026 earnings at $0.94 EPS, FY2026 earnings at $3.53 EPS and FY2027 earnings at $4.42 EPS.

SBUX has been the topic of a number of other research reports. Citigroup raised their price objective on Starbucks from $96.00 to $99.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Morgan Stanley raised their price target on shares of Starbucks from $98.00 to $115.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 16th. Wedbush dropped their price objective on shares of Starbucks from $98.00 to $95.00 and set a “neutral” rating for the company in a research note on Thursday, October 31st. Jefferies Financial Group lowered shares of Starbucks from a “hold” rating to an “underperform” rating and decreased their target price for the stock from $80.00 to $76.00 in a research note on Tuesday, September 24th. Finally, Piper Sandler upgraded Starbucks from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $85.00 to $103.00 in a report on Tuesday, August 13th. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $102.81.

Starbucks Price Performance

Shares of NASDAQ:SBUX opened at $102.50 on Friday. Starbucks has a 1 year low of $71.55 and a 1 year high of $103.60. The firm has a market capitalization of $116.21 billion, a PE ratio of 30.97, a P/E/G ratio of 2.90 and a beta of 0.97. The business’s 50 day moving average price is $97.11 and its 200-day moving average price is $87.10.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Wednesday, October 30th. The coffee company reported $0.80 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.80. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. The firm had revenue of $9.07 billion for the quarter, compared to analyst estimates of $9.60 billion. During the same period last year, the company posted $1.06 EPS. Starbucks’s quarterly revenue was down 3.2% compared to the same quarter last year.

Starbucks Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be issued a $0.61 dividend. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.38%. This is a boost from Starbucks’s previous quarterly dividend of $0.57. The ex-dividend date of this dividend is Friday, November 15th. Starbucks’s payout ratio is presently 73.72%.

Insider Activity at Starbucks

In other news, Director Jorgen Vig Knudstorp acquired 380 shares of the stock in a transaction that occurred on Friday, September 6th. The shares were purchased at an average cost of $91.50 per share, for a total transaction of $34,770.00. Following the transaction, the director now directly owns 36,242 shares in the company, valued at approximately $3,316,143. This represents a 1.06 % increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Rachel Ruggeri sold 1,452 shares of the company’s stock in a transaction on Friday, November 15th. The stock was sold at an average price of $99.07, for a total transaction of $143,849.64. Following the transaction, the chief financial officer now owns 65,648 shares of the company’s stock, valued at approximately $6,503,747.36. The trade was a 2.16 % decrease in their position. The disclosure for this sale can be found here. 1.98% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP raised its stake in shares of Starbucks by 100.6% during the 3rd quarter. Wellington Management Group LLP now owns 15,149,937 shares of the coffee company’s stock worth $1,476,967,000 after buying an additional 7,598,146 shares in the last quarter. FMR LLC raised its position in Starbucks by 55.0% in the third quarter. FMR LLC now owns 19,779,859 shares of the coffee company’s stock worth $1,928,339,000 after acquiring an additional 7,015,375 shares in the last quarter. Marshall Wace LLP lifted its holdings in Starbucks by 1,466.3% in the second quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company’s stock valued at $260,870,000 after acquiring an additional 3,136,992 shares during the period. Diamond Hill Capital Management Inc. purchased a new stake in shares of Starbucks during the 2nd quarter worth $243,910,000. Finally, Capital World Investors acquired a new position in shares of Starbucks during the 1st quarter worth $257,721,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.