Why we chose to keep our Starbucks rating despite strong quarter and investor day

January 29, 2026

TL;DR

Starbucks announced multi-year financial targets for fiscal 2028, including at least 3% global and U.S. same-store sales growth, at least 5% revenue growth, and earnings per share between $3.35 and $4.
The company aims for an operating margin of 13.5% to 15% by 2028.
CEO Brian Niccol's "Back to Starbucks" strategy focuses on simplifying operations, improving store speed, and re-engaging Rewards customers.
Starbucks made progress on serving every drink in under four minutes.
U.S. transactions grew for the first time in eight quarters, benefiting both rewards and non-rewards members.
The Starbucks Rewards program has a record 35.5 million members.
A remodeled rewards loyalty program with new tiered membership levels (green, gold, reserve) launches March 10 to accelerate sales growth and profits.
Jim Cramer expressed confidence in the turnaround, advising patience for investors.
The stock jumped 10% after the earnings release but was down nearly 1% on Thursday; it is up 13% year-to-date.
The CNBC Investing Club maintains a $100-per-share price target and a 2-rating for SBUX.

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