Starbucks (SBUX) Stock Forecast & Price Target

Starbucks's positive outlook is supported by strong revenue streams from its extensive network of nearly 41,000 cafes, with 74% of revenue generated from North America and promising growth in international markets. The company anticipates an increase in new store openings, projecting around 1,375 new units for FY26 and significant overseas growth that is expected to surpass North America's unit growth in FY27. Furthermore, improvements in same-store sales across North America (3.8%) and international markets (3.3%), alongside a recovering perception of Starbucks's value and quality, bolster an optimistic sales and earnings outlook, particularly with pent-up demand in China aiding financial performance.

Starbucks, recognized as the largest global coffee brand with nearly 41,000 cafes, faces significant financial risks that negatively impact its stock outlook, including potential pricing strategies that may indicate overearnings in the post-COVID period. Challenges such as weakening sales in key markets like Japan and the U.S., along with a deterioration in consumer perceptions of value and quality, contribute to concerns about future revenue stability. Additionally, ongoing macroeconomic pressures, coupled with operational disruptions and leadership changes, heighten the risk of underperformance in same-store sales and broader financial results, further complicating the company's recovery trajectory.