In the third quarter, Great Lakes Advisors LLC trimmed its position in Starbucks by 16.4%, selling 11,999 shares to end the period with 61,076 shares. At quarter-end, the fund’s remaining stake was valued at approximately $5.17 million. This reduction contrasts with a broader trend among institutional holders, where overall ownership stands at 72.29%, signaling that some large investors are rotating capital away from the coffee chain despite its global footprint and recent operational initiatives.

Starbucks reported revenue of $9.92 billion for its first fiscal quarter, exceeding consensus estimates by $300 million and marking 5.5% year-over-year growth. However, adjusted EPS of $0.56 missed analyst forecasts by $0.03, and net margin contracted to 3.63% from the prior year. The company’s return on equity swung to negative 28.66%, driven by elevated operating costs tied to service enhancements and supply-chain investments. While comparable store sales grew 4% globally and achieved a U.S. comparable transaction increase for the first time in eight quarters, profitability remains under pressure.

Following the earnings release, nineteen analysts reaffirmed buy ratings on the stock, seven maintained holds, and two issued sells, resulting in a consensus Moderate Buy. Recent research notes include Mizuho’s neutral affirmation with an unchanged view on valuation metrics, Citigroup’s upgrade to Positive based on service model improvements, and Bank of America’s reiteration of a Buy rating driven by expected margin recovery. While price targets range broadly, the majority highlight renewed confidence in Starbucks’ ability to leverage its rewards program and store remodels to drive sustainable traffic growth.

Management set full-year EPS guidance between $2.15 and $2.40, below the $2.99 analysts currently model, indicating a conservative stance on margin expansion. Starbucks reiterated plans to open over 650 new stores and invest in its restructured loyalty tiers to boost member engagement. The company expects comparable store sales growth of at least 3% globally and a non-GAAP operating margin expansion toward mid-teens by fiscal 2028, underscoring a multi-year turnaround plan that balances growth investments with disciplined cost management.