Starbucks: Operational Initiatives and Cost Savings Underpin Path to EPS Growth and $100 Price Target

Bernstein analyst Danilo Gargiulo maintained a Buy rating on Starbucks yesterday and set a price target of $100.00.

Danilo Gargiulo has given his Buy rating due to a combination of factors that, in his view, create a credible path for Starbucks to deliver substantial EPS growth by 2028. He highlights that achieving the company’s $2B cost‑saving program alongside mid‑single‑digit revenue growth and sustained margin expansion could not only meet but potentially surpass the $4 EPS ambition, even after allowing for some uncertainty around the exact timing and composition of those savings.

Gargiulo also stresses that existing initiatives—such as operational changes in stores, enhancements to the loyalty program, improved in‑store ambiance, and menu innovation—should drive several points of same‑store sales growth via both higher traffic and ticket, with pricing used judiciously to preserve value perception. While he acknowledges that the recent share price rally has moderated the upside, he believes that continued traffic strength, execution against these initiatives, and resulting upward estimate revisions can sustain positive momentum, supporting his Outperform rating and $100 price target.