Starbucks Gets Hold Rating, Guides $9.23B Q2 Revenue and $0.43–$0.44 EPS
Jefferies raised its rating on Starbucks to Hold from Underperform when shares were $96.81, signaling expected stabilization as the company declares a $0.62 quarterly dividend. Starbucks projects Q2 revenue of $9.23 billion and EPS of $0.43–$0.44 while launching “Back to Starbucks” and “Green Apron Service” to counter margin pressures.
1. Jefferies Rating Upgrade
Jefferies raised Starbucks’ rating from Underperform to Hold when shares traded around $96.81, signaling analyst confidence in stabilization. The company also declared a quarterly cash dividend of $0.62 per share as it prepares for Q2 results.
2. Q2 Financial Guidance
Starbucks projects second-quarter revenue of approximately $9.23 billion, up from $8.76 billion a year earlier, and earnings per share between $0.43 and $0.44, compared with $0.41 last year.
3. Strategic Initiatives
To drive transaction growth, Starbucks is rolling out the “Back to Starbucks” plan to enhance customer engagement and the “Green Apron Service” to improve service efficiency.
4. Margin Pressures and Market Metrics
The company faces seasonal margin pressures and higher coffee and tariff costs, which could affect profitability. Starbucks shares have traded between $96.58 and $98.68 intraday and held a 52-week range of $75.50 to $104.82, with a market cap near $110.14 billion.