Here’s what Wall Street is saying about Starbucks ahead of earnings

Starbucks (SBUX) is scheduled to report results of its fiscal first quarter before the market opens on January 28, with a conference call scheduled for 8:00 am ET. What to watch for:

WILLIAM BLAIR UPGRADE: Ahead of the quarterly report, William Blair upgraded Starbucks to Outperform from Market Perform last week. The firm expects Starbucks to post its first domestic comp gain in two years in the December quarter, which should set the brand up well for a return to positive full-year comp gains in FY26, the analyst tells investors in a research note. Assuming about 3% global unit expansion alongside a low-single-digit comp, the firm sees a path to consolidated operating margin recovering within spitting distance of 2023 levels by 2030, implying a 15% to 20% EPS CAGR over the next five years, William Blair added.

PT INCREASES: The bullish sentiment doesn’t end with William Blair, as no fewer than five firms increased their price targets on Starbucks ahead of the results. On Tuesday, Guggenheim analyst Gregory Francfort raised the firm’s price target to $90 from $88 and kept a Neutral rating on the shares after updating estimates ahead of the upcoming report due this Wednesday and investor day in New York on Thursday. Ahead of the events, the firm raised its 2027 and 2028 EPS estimates by 5c each, the analyst noted.

Wells Fargo also raised the firm’s price target on Starbucks to $105 from $100 on Tuesday, keeping an Overweight rating on the shares. The firm notes the stock is up 14% year-to-date, Q1/quarter-to-date comparable sales are likely strong and sentiment is improving with a higher price to earnings warranted for an under-earning business. But into EPS/Analyst Day, near-term optimism seems priced in and some digestion could be on tap, Wells adds.

Meanwhile, Mizuho analyst Nick Setyan this week increased the firm’s price target on Starbucks to $95 from $86 and reiterated a Neutral rating on the shares ahead of the earnings report. The firm sees “little risk” to Starbucks’ fiscal 2026 same-store-sales growth expectations. However, consensus operating margin expectations through fiscal 2028 for the company’s North America unit are optimistic, the analyst tells investors in a research note.

BofA also raised the firm’s price target on Starbucks to $120 from $114 and maintained a Buy rating on the shares. The firm is fine-tuning estimates for 22 restaurant companies across its coverage and adjusting select price targets to reflect estimate and valuation multiple changes. Additionally, Gordon Haskett hiked the firm’s price target on Starbucks to $95 from $88 and kept a Hold rating on the shares.

BOYU: In early November, about a week after the company’s last earnings report, Starbucks announced it entered an agreement to form a joint venture with Boyu Capital, an alternative investment firm, to operate Starbucks retail in China. Under the agreement, Boyu Capital will acquire up to a 60% interest in Starbucks retail operations in China. Starbucks will retain 40% interest and will serve as the owner and licensor of the Starbucks global brand. Starbucks expects the total value of its China retail business to exceed $13B, composed of three sources: proceeds from the sale of a controlling interest in the joint venture to Boyu Capital, the value of Starbucks retained interest in the joint venture, and the net present value of ongoing licensing economics payable to Starbucks over the next decade or more.