Citi Cuts Starbucks Price Target to $92, Flags Recovery Uncertainty
Citi analyst Jon Tower cut his Starbucks price target to $92 from $94, maintaining a Neutral rating due to uncertainty over the recovery pace. In fiscal Q1 2026, global revenue grew 5% to $9.9 billion with same-store sales up 4%, operating margin at 10.1%, EPS $0.56 and 128 net new stores.
1. Citi Cuts Price Target Over Recovery Uncertainty
Citi analyst Jon Tower reduced his price target on Starbucks to $92 from $94 while reaffirming a Neutral rating, citing lingering questions about the pace of the company’s turnaround following recent earnings and its investor event. The firm highlighted that the Back to Starbucks plan shows progress but still leaves uncertainty around sustained revenue momentum.
2. Fiscal Q1 2026 Revenue and Margin Details
Starbucks reported global revenue of $9.9 billion, a 5% year-over-year increase, with comparable store sales rising 4%. North America revenue grew 3% to $7.3 billion, international revenue climbed 10% to $2.1 billion, operating margin hit 10.1%, and EPS reached $0.56 while the chain opened 128 net new coffeehouses.
3. Operations, Efficiency and Technology Investments
CEO Brian Niccol noted efforts to optimize supply chain, review menu offerings and reduce waste as part of broader efficiency improvements. The appointment of Anand Varadarajan as Chief Technology Officer is aimed at enhancing technology platforms to support operations and drive future growth.