Zacks Research Has Pessimistic View of Starbucks Q3 Earnings

Starbucks Co. (NASDAQ:SBUX) – Equities research analysts at Zacks Research lowered their Q3 2025 earnings per share (EPS) estimates for shares of Starbucks in a research note issued to investors on Tuesday, May 20th. Zacks Research analyst H. Ray now anticipates that the coffee company will post earnings per share of $0.67 for the quarter, down from their prior forecast of $0.87. The consensus estimate for Starbucks’ current full-year earnings is $2.99 per share. Zacks Research also issued estimates for Starbucks’ FY2025 earnings at $2.49 EPS, Q1 2026 earnings at $0.75 EPS, FY2026 earnings at $3.06 EPS and FY2027 earnings at $3.76 EPS.

SBUX has been the topic of a number of other research reports. Citigroup dropped their price target on Starbucks from $88.00 to $84.00 and set a “neutral” rating on the stock in a research note on Wednesday, April 30th. Robert W. Baird reissued a “neutral” rating and issued a $85.00 target price (down previously from $114.00) on shares of Starbucks in a report on Monday, April 7th. Wall Street Zen lowered Starbucks from a “hold” rating to a “sell” rating in a report on Thursday. The Goldman Sachs Group downgraded Starbucks from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $103.00 to $85.00 in a research report on Wednesday, April 30th. Finally, BMO Capital Markets reduced their price objective on Starbucks from $115.00 to $100.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 30th. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and sixteen have assigned a buy rating to the stock. According to data from MarketBeat.com, Starbucks presently has a consensus rating of “Hold” and an average price target of $98.72.

Starbucks Stock Up 0.5%

NASDAQ:SBUX opened at $84.40 on Friday. The stock’s 50 day moving average price is $86.78 and its 200 day moving average price is $96.04. The company has a market capitalization of $95.91 billion, a PE ratio of 27.23, a P/E/G ratio of 3.59 and a beta of 0.99. Starbucks has a 52-week low of $71.55 and a 52-week high of $117.46.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Tuesday, April 29th. The coffee company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.10). Starbucks had a negative return on equity of 44.97% and a net margin of 9.73%. The business had revenue of $8.76 billion for the quarter, compared to analyst estimates of $8.90 billion. During the same period last year, the business posted $0.68 EPS. Starbucks’s revenue was up 2.3% on a year-over-year basis.

Institutional Investors Weigh In On Starbucks

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in Starbucks by 0.9% during the 1st quarter. Vanguard Group Inc. now owns 112,059,570 shares of the coffee company’s stock worth $10,991,923,000 after buying an additional 953,361 shares during the last quarter. Capital World Investors increased its position in shares of Starbucks by 20.1% during the 4th quarter. Capital World Investors now owns 54,924,230 shares of the coffee company’s stock valued at $5,011,796,000 after purchasing an additional 9,174,682 shares during the period. FMR LLC grew its holdings in shares of Starbucks by 27.0% in the 4th quarter. FMR LLC now owns 25,128,649 shares of the coffee company’s stock worth $2,292,989,000 after acquiring an additional 5,348,790 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Starbucks by 2.3% in the 4th quarter. Geode Capital Management LLC now owns 24,826,001 shares of the coffee company’s stock worth $2,259,516,000 after acquiring an additional 548,245 shares during the last quarter. Finally, Wellington Management Group LLP boosted its position in shares of Starbucks by 22.3% in the first quarter. Wellington Management Group LLP now owns 19,414,472 shares of the coffee company’s stock worth $1,904,366,000 after buying an additional 3,545,655 shares during the period. Institutional investors and hedge funds own 72.29% of the company’s stock.

Starbucks Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 30th. Shareholders of record on Friday, May 16th will be paid a dividend of $0.61 per share. The ex-dividend date is Friday, May 16th. This represents a $2.44 dividend on an annualized basis and a yield of 2.89%. Starbucks’s dividend payout ratio (DPR) is presently 88.41%.

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.