Cowen & Co reaffirmed a Hold rating on Starbucks while increasing its 12-month price target from $84 to $89. Analysts cited the company’s resilient market position and recent comparable sales growth but expressed caution about margin pressures from labor and supply-chain investments. The upgrade in target suggests moderate optimism about revenue and same-store sales trends, yet the Hold reflects concerns over near-term profitability and competitive pressures in mature markets such as North America.

Starbucks plans to open 650 new company-operated stores in fiscal 2026, expanding its global footprint across key growth regions. Management emphasized that while expansion remains important, the performance of the existing 16,000 U.S. stores is paramount. U.S. comparable store sales—measuring revenue at locations open at least 12 months—serve as a barometer of traffic and pricing power, with positive comps indicating sustained customer engagement and negative comps flagging market saturation or competitive displacement.

In the first quarter of fiscal 2026, Starbucks reported 4% global comparable sales growth, driven by a 7% comps gain in China and a 4% increase in the U.S. Consolidated revenue rose 5% to $9.92 billion, exceeding consensus expectations. However, operating income declined year-over-year, and earnings per share fell 19%, reflecting higher labor costs and fixed-cost leverage as throughput improvements lagged. Management highlighted that while sales momentum has returned, restoring operating margins to historical levels will require sustained sales growth alongside continued operational efficiency gains.