In its fiscal first quarter, Starbucks reported a 5.5% year-over-year rise in revenue to $9.92 billion, propelled by a 4% increase in same-store sales in the U.S. and the first uplift in global customer traffic since early 2022. While earnings per share came in at $0.56, just shy of consensus, management emphasized that underlying demand is strengthening. The company highlighted improvements in order accuracy and speed of service after rolling out enhanced staff training and streamlined menu offerings under its “Back to Starbucks” program, setting the stage for operating-margin expansion in the second half of the fiscal year.

During the third quarter, Terra Alpha Investments raised its stake by 17.9%, acquiring an additional 6,406 shares to reach 42,273 shares—now the fund’s 12th largest holding at a valuation of $3.576 million. Overall, hedge funds and other institutions own 72.29% of Starbucks’ equity. Smaller managers such as Cooper Haims Advisors and Diligent Investors also modestly increased positions, while Great Lakes Advisors trimmed its exposure by 16.4%. On the insider front, Director Jorgen Vig Knudstorp purchased 11,700 shares at an average price of $85.00 for $994,500, boosting his ownership by 28.3% and underscoring confidence at the board level.

Starbucks set full-year guidance of $2.15 to $2.40 in adjusted earnings per share, reflecting expectations for margin improvement as the new initiatives gain traction. Analysts currently forecast $2.99 EPS for the year and project over 5% annual revenue growth through fiscal 2028, with operating margins reaching the mid-teens. The company also declared a quarterly dividend of $0.62 per share, translating to a 2.7% yield and an annualized payout of $2.48, despite a payout ratio above 200%. Share repurchases remain an integral part of capital allocation, reinforcing returns to investors as cash flow recovers.