Zacks Research Has Pessimistic View of Starbucks Q1 Earnings

Starbucks Corporation (NASDAQ:SBUX) – Analysts at Zacks Research decreased their Q1 2026 earnings per share (EPS) estimates for shares of Starbucks in a research report issued on Tuesday, December 30th. Zacks Research analyst Team now forecasts that the coffee company will earn $0.56 per share for the quarter, down from their prior estimate of $0.63. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Starbucks’ current full-year earnings is $2.99 per share. Zacks Research also issued estimates for Starbucks’ Q2 2026 earnings at $0.40 EPS, Q3 2026 earnings at $0.63 EPS, Q4 2026 earnings at $0.61 EPS, FY2026 earnings at $2.20 EPS, Q1 2027 earnings at $0.65 EPS, Q2 2027 earnings at $0.53 EPS, Q3 2027 earnings at $0.71 EPS, Q4 2027 earnings at $0.96 EPS, FY2027 earnings at $2.85 EPS and FY2028 earnings at $3.70 EPS.

A number of other equities research analysts also recently commented on SBUX. Dbs Bank downgraded shares of Starbucks from a “hold” rating to a “strong sell” rating in a report on Friday, November 7th. TD Cowen reissued a “hold” rating and set a $84.00 price objective on shares of Starbucks in a research note on Monday, December 1st. Barclays decreased their target price on shares of Starbucks from $115.00 to $95.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 22nd. BMO Capital Markets reaffirmed an “outperform” rating on shares of Starbucks in a research note on Thursday, October 30th. Finally, Sanford C. Bernstein set a $100.00 price target on Starbucks and gave the company an “outperform” rating in a report on Thursday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Starbucks presently has an average rating of “Hold” and an average target price of $101.44.

Starbucks Trading Down 1.2%

Shares of SBUX stock opened at $84.21 on Thursday. The company has a market capitalization of $95.76 billion, a price-to-earnings ratio of 51.35, a PEG ratio of 1.76 and a beta of 0.97. The firm has a 50-day moving average price of $84.79 and a 200 day moving average price of $87.35. Starbucks has a twelve month low of $75.50 and a twelve month high of $117.46.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Wednesday, October 29th. The coffee company reported $0.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.55 by ($0.03). The company had revenue of $9.57 billion during the quarter, compared to analysts’ expectations of $9.41 billion. Starbucks had a net margin of 4.99% and a negative return on equity of 31.32%. The firm’s revenue was up 5.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.80 earnings per share.

Institutional Investors Weigh In On Starbucks

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Cape Investment Advisory Inc. raised its holdings in shares of Starbucks by 2.1% in the 3rd quarter. Cape Investment Advisory Inc. now owns 14,868 shares of the coffee company’s stock worth $1,258,000 after purchasing an additional 309 shares during the period. Triumph Capital Management purchased a new stake in shares of Starbucks during the 3rd quarter worth about $289,000. AIA Group Ltd grew its holdings in shares of Starbucks by 13.0% during the 3rd quarter. AIA Group Ltd now owns 129,880 shares of the coffee company’s stock worth $10,988,000 after purchasing an additional 14,955 shares during the period. Painted Porch Advisors LLC increased its position in Starbucks by 85.2% during the 3rd quarter. Painted Porch Advisors LLC now owns 1,802 shares of the coffee company’s stock worth $152,000 after purchasing an additional 829 shares in the last quarter. Finally, Saranac Partners Ltd purchased a new position in Starbucks in the third quarter valued at approximately $29,000. 72.29% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Jorgen Vig Knudstorp acquired 11,700 shares of the company’s stock in a transaction dated Monday, November 10th. The stock was acquired at an average cost of $85.00 per share, for a total transaction of $994,500.00. Following the acquisition, the director directly owned 53,096 shares in the company, valued at approximately $4,513,160. This represents a 28.26% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. 0.09% of the stock is owned by corporate insiders.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Friday, February 13th will be issued a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Friday, February 13th. Starbucks’s dividend payout ratio (DPR) is 151.22%.

Key Headlines Impacting Starbucks

Here are the key news stories impacting Starbucks this week:

• Positive Sentiment: CEO Brian Niccol pointed to Reddit feedback as evidence the “Back to Starbucks” service-improvement plan is working, signaling early operational progress that could support margins and same-store performance. Article Title
• Positive Sentiment: Company plans to add and remodel stores in 2026 after trimming ~400 U.S. locations — a mix of cost rationalization and targeted reinvestment that could improve network profitability over time. Article Title
• Neutral Sentiment: Starbucks closed around 400 U.S. stores this year as it refocuses on profitability and customer experience; this reduces footprint but frees capital for remodeling and higher-return locations. Article Title
• Negative Sentiment: Analysts at Zacks Research sharply cut earnings estimates across multiple quarters and fiscal years and downgraded SBUX to a “Strong Sell” — the main near-term catalyst cited for weakness as lower EPS forecasts raise valuation concerns. Article Title
• Negative Sentiment: Unusually large put-option buying was reported (big increase vs. average daily put volume), indicating elevated trader bearishness or hedging demand that can amplify downward pressure on the share price. Article Title

Starbucks Company Profile

Starbucks Corporation is a global coffeehouse chain and roaster that operates, licenses and franchises coffee shops and related retail businesses. Founded in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, the company grew from a single store focused on whole-bean coffee and equipment into a broad consumer-facing brand. Howard Schultz, who joined the company later and served in senior leadership roles, is widely credited with transforming Starbucks into a mass-market specialty coffee retailer and expanding its footprint internationally.

Starbucks’ core activities center on the retail sale of hot and cold specialty beverages, whole-bean and packaged coffees, teas and ready-to-drink products, along with complementary food items and merchandise such as mugs and brewing equipment.