Street View: Starbucks brews growth optimism
SBUX•Starbucks forecast annual profit above Wall Street expectations and announced a $1 billion share repurchase plan, while analysts cited potential growth from its strategy, afternoon business and operations.
1. Analysts see growth potential
Morgan Stanley said Starbucks could continue and expand its strategy through fiscal 2027, with comparable sales growth and traffic key. TD Cowen expects more focus on the afternoon business through new drinks and marketing, while Gordon Haskett sees operations, cost control and sales drivers continuing to deliver in fiscal 2027.
2. Investments support sales
Morningstar said Starbucks’ investments in remodels, service, menu innovation and marketing strengthen its premium positioning and drive sales growth despite a challenging macro backdrop.
