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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $100.00 price target on Starbucks (NASDAQ:SBUX) as the coffee giant shows early signs of recovery in its North American operations.
The Green Apron model, implemented across Starbucks’ entire system in August, has already yielded positive results with comparable sales growth in September and October. This upward trajectory comes at a time when other brands face challenges, particularly in the morning daypart segment.
Starbucks’ protein platform menu innovation has increased customer frequency with high incrementality, positioning the company well for fiscal year 2026 comparable sales. The protein customizations may provide sufficient ticket increases to offset rising costs, potentially allowing management to contain price increases.
The company has accelerated rationalization of its store base and removed unprofitable promotions, setting the stage for higher returns on capital and a more sustainable portfolio long-term. Bernstein maintains its FY26 comparable sales growth forecast at 2.9%.
Looking ahead, 2026 is expected to be a critical inflection point for Starbucks, with an upcoming Investor Day in late January anticipated to provide strategic milestones toward surpassing 2019 margin levels. Bernstein sees a path for FY28 earnings per share reaching approximately $4.
In other recent news, Starbucks Corporation released its fourth-quarter earnings for 2025, showing a mixed financial outcome. The company reported earnings per share (EPS) of $0.52, falling short of the anticipated $0.56, which represents a 7.14% shortfall. On a positive note, Starbucks exceeded revenue expectations, generating $9.57 billion compared to the forecasted $9.35 billion, resulting in a 2.35% surprise. These financial results highlight the company’s ability to surpass revenue projections despite missing EPS estimates. Investors and analysts continue to monitor Starbucks closely, as these developments reflect ongoing challenges and opportunities within the company’s financial landscape.
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