Zacks Research Reduces Earnings Estimates for Starbucks

Starbucks Co. (NASDAQ:SBUX) – Investment analysts at Zacks Research reduced their FY2025 earnings per share (EPS) estimates for Starbucks in a note issued to investors on Wednesday, November 20th. Zacks Research analyst H. Ray now forecasts that the coffee company will earn $3.11 per share for the year, down from their previous forecast of $3.56. The consensus estimate for Starbucks’ current full-year earnings is $3.15 per share.

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

A number of other brokerages also recently weighed in on SBUX. Citigroup boosted their target price on Starbucks from $96.00 to $99.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Royal Bank of Canada initiated coverage on Starbucks in a research note on Friday, November 15th. They issued an “outperform” rating and a $115.00 price objective for the company. Stifel Nicolaus raised their target price on Starbucks from $105.00 to $110.00 and gave the company a “buy” rating in a research report on Thursday, October 31st. BTIG Research boosted their price target on shares of Starbucks from $100.00 to $115.00 and gave the stock a “buy” rating in a report on Thursday, October 17th. Finally, Wedbush decreased their price objective on shares of Starbucks from $98.00 to $95.00 and set a “neutral” rating for the company in a report on Thursday, October 31st. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $102.81.

Starbucks Price Performance

SBUX opened at $102.50 on Monday. Starbucks has a fifty-two week low of $71.55 and a fifty-two week high of $103.60. The company’s 50-day moving average is $97.11 and its 200 day moving average is $87.19. The firm has a market capitalization of $116.21 billion, a P/E ratio of 30.97, a PEG ratio of 2.90 and a beta of 0.97.

Institutional Investors Weigh In On Starbucks

Several hedge funds have recently added to or reduced their stakes in the company. Strategic Investment Solutions Inc. IL bought a new stake in Starbucks in the 2nd quarter worth approximately $25,000. New Millennium Group LLC purchased a new stake in shares of Starbucks in the 2nd quarter valued at $26,000. Stephens Consulting LLC grew its holdings in shares of Starbucks by 498.2% during the 2nd quarter. Stephens Consulting LLC now owns 335 shares of the coffee company’s stock valued at $26,000 after purchasing an additional 279 shares during the last quarter. Hobbs Group Advisors LLC purchased a new position in Starbucks in the 2nd quarter worth $27,000. Finally, MFA Wealth Advisors LLC bought a new stake in Starbucks in the second quarter worth $31,000. Institutional investors own 72.29% of the company’s stock.

Insider Buying and Selling

In other Starbucks news, CFO Rachel Ruggeri sold 1,491 shares of Starbucks stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $99.54, for a total transaction of $148,414.14. Following the completion of the sale, the chief financial officer now directly owns 80,124 shares in the company, valued at $7,975,542.96. The trade was a 1.83 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jorgen Vig Knudstorp purchased 380 shares of the business’s stock in a transaction on Friday, September 6th. The stock was bought at an average cost of $91.50 per share, with a total value of $34,770.00. Following the purchase, the director now owns 36,242 shares in the company, valued at approximately $3,316,143. This represents a 1.06 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 1.98% of the stock is owned by company insiders.

Starbucks Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 29th. Investors of record on Friday, November 15th will be given a $0.61 dividend. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.38%. The ex-dividend date of this dividend is Friday, November 15th. This is an increase from Starbucks’s previous quarterly dividend of $0.57. Starbucks’s dividend payout ratio (DPR) is 73.72%.

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.