Starbucks (SBUX) Stock Forecast & Price Target

Starbucks is poised for continued growth with an anticipated increase in new store openings, projecting approximately 630 new locations in the current fiscal year and 1,375 in FY26. The company has reported positive same-store sales growth, with increases of 3.8% in North America and 3.3% internationally, reflecting strong consumer demand and effective marketing strategies. Furthermore, Starbucks benefits from a robust presence in China, enhanced by strategic joint ventures, which is expected to further bolster revenue and unit growth, especially with expectations of a pipeline expansion towards approximately 3% in FY27 and an accelerated 5% growth in FY28.

Starbucks faces significant headwinds that negatively impact its financial outlook, primarily due to ineffective management changes that fail to drive U.S. traffic growth while ongoing investments are expected to suppress margins for a longer duration than previously anticipated. Furthermore, the company's performance in China continues to deteriorate amid competitive pressures, along with economic challenges in Japan, which collectively threaten sales and profitability. Adjustments to operational expense estimates reflect a projected decline in EBIT by 6.9% and EPS by 7.7% for the fourth quarter of 2026, highlighting the potential for a broader impact from consumer spending slowdowns across the restaurant industry.