Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Starbucks looks like a high-quality but no longer cheap business: operating margin and gross margin remain strong, but valuation on earnings, revenue, and free cash flow is noticeably above sector benchmarks. A P/E of 61.4 and a P/S of 3.16 are significantly above the sector median, which limits upside re-rating potential without faster growth. P/FCF is also high, so the market is already pricing in strong cash flow expectations. At the same time, ROA of 6.44 and ROI of 37.0 confirm solid efficiency in the use of assets and capital, while net income and operating income remain positive and have been rising in recent periods. On the other hand, liquidity is weak: a current ratio of 0.76 and a quick ratio of 0.54 are below comfortable levels, increasing sensitivity to short-term shocks. Long-term debt remains significant, and negative equity points to a complex balance sheet structure and limits valuation support through book value. Dividend yield of around 0.58% is low and has declined over the year, so the dividend factor does not offset the expensive valuation. Revenue over recent periods has fluctuated and does not show convincing acceleration, while gross profit and EBITDA look more stable than growing. Overall, the fundamentals support the company as a resilient category leader, but do not justify an aggressive increase in the target price. For an investor, this is a story of a strong brand and margins with moderate growth, but with notable risk of overvaluation and weak balance-sheet liquidity. Therefore, only a small, conservative negative adjustment to the forecast is appropriate.

Starbucks Corporation

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Strong margins and profitability at Starbucks are matched by a rich valuation, weak liquidity, and high debt, so the outlook should be slightly lowered.

Starbucks Corporation SBUX is increasingly turning to the Refreshers platform to unlock afternoon traffic, a key growth opportunity under its Back to Starbucks strategy. The company’s third-quarter fiscal 2026 results suggest the strategy is gaining traction, although sustaining momentum will depend on continued innovation and execution.
U.S. comparable sales increased 7.9% in third-quarter fiscal 2026, supported by 4.2% transaction growth and 3.6% higher average ticket. While growth was broad-based across dayparts, management acknowledged that morning transactions remain the strongest, leaving significant room to build the afternoon occasion.
Refreshers emerged as an important catalyst. U.S. Refresher revenues grew at a double-digit rate year over year, with customizable Energy Refreshers, Blue Coconut and Mango helping attract customers at different times of day. CFO Cathy Smith highlighted Refreshers as an afternoon beverage occasion, alongside Matcha and new food offerings such as wraps.
Starbucks also sees differentiation through flavor, customization and its beverage craftsmanship. The company plans to test sparkling “Spritzers” and has already introduced blended Refreshers, creating additional avenues for customer engagement.
The opportunity is meaningful, but competition is intensifying as other quick-service restaurants expand their beverage offerings. Still, Starbucks’ improving store execution, stronger afternoon merchandising and expanding menu innovation provide reasons for optimism.
Refreshers Face Growing Competition From BROS and MCD
Starbucks’ push to expand the afternoon daypart comes as competition in cold and customizable beverages intensifies. Dutch Bros Inc. BROS is a particularly relevant rival, with a beverage-focused model built around customizable cold drinks, energy beverages and flavored refreshers. BROS’ strong positioning among younger consumers could make it a formidable competitor as Starbucks seeks to increase afternoon visits. Starbucks itself acknowledged that competitors are becoming more active in the refresher space, making differentiation through flavors, customization and beverage craftsmanship increasingly important.
McDonald’s Corporation MCD also competes for afternoon beverage occasions through its expanding McCafé lineup and cold beverages. Although its core business is broader than Starbucks, the large restaurant footprint and value-oriented positioning give McDonald’s significant reach among consumers seeking convenient drinks and snacks.
For Starbucks, the advantage lies in its established Refreshers platform and continued innovation, including blended and sparkling variants. However, maintaining customer interest will require Starbucks to consistently refresh its offerings while converting beverage experimentation into repeat afternoon traffic.
SBUX’s Price Performance, Valuation & Estimates
Starbucks’ shares have gained 21.2% over the past year, while the industry declined 8.2%.
SBUX’s One-Year Price Performance
From a valuation standpoint, SBUX trades at a forward price-to-earnings (P/E) multiple of 32.04, above the industry’s average of 21.49.
SBUX’s P/E Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 21.6%. EPS estimates for fiscal 2026 have increased in the past 60 days.
EPS Trend of SBUX Stock
SBUX’s Zacks Rank
SBUX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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SBUX Bets on Refreshers to Boost Afternoon Traffic: Will it Pay Off?

Key Points
Starbucks' sales show management's turnaround efforts are working.
Dutch Bros continues to expand.
Both have rich valuations compared to the S&P 500.
Venerable Starbucks (NASDAQ: SBUX) and relative upstart Dutch Bros (NYSE: BROS) have seen their stock prices go in different directions this year. The former had a share price gain of more than 24%, while the latter lost about 24%.
Is the market sending a signal about future prospects, or are investors focusing too much on the short term? To make that determination, investors need to take a closer look at each company's business prospects in conjunction with their valuations.
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Let's examine Starbucks and Dutch Bros to see which one currently offers the better investment potential.
Starbucks' impressive revitalization
Starbucks' board of directors hired Brian Niccol in 2024 to turn around sales. With a focus on customer service, revamping restaurants, menu changes, and continued expansion, the company has made progress.
That's not easy for a company that's been around for more than half a century. It currently has more than 41,000 company-owned and licensed locations around the world.
Impressively, Starbucks has produced four straight quarterly same-store (comps) increases. That includes its fiscal third-quarter's 7.9% gain. Importantly, higher traffic accounted for 4.2 percentage points, with increased spending responsible for the balance. This covered the period that ended on June 28.
Broken out, North America had an 8.1% increase in comps, and its international locations posted a 5.7% rise. And management expects this momentum to continue for the fourth quarter. It anticipates U.S. comps growth of at least 6.5% and almost 6% growth globally.
Upstart Dutch Bros looks to sustain growth
Founded in 1992, Dutch Bros has grown quickly by operating drive-through locations focused on serving high-quality beverages quickly and with strong attention to customer service.
It has 1,225 franchised and company-operated locations as of June 30. That's up from 1,136 restaurants as of Dec. 31. These are entirely located in the United States, although it has no presence in certain states, particularly in the Northeast and Midwest. Management expects to reach 2,029 restaurants in 2029.
You can see how much its concept has resonated with consumers by looking at its results. Dutch Bros continues to increase comps at a good clip. Its second-quarter comps grew 5.8%, with higher spending responsible for 4.1 percentage points. Management expects a 5% to 6% increase for the year.
The decision
Before making an investment decision, it's important to look at each stock's valuation. Neither one looks like a bargain, but that shouldn't dissuade you from one of them.
Starbucks' shares have a price-to-earnings (P/E) ratio of 60, although that's down from 70 at the start of the year. Dutch Bros' stock trades at a P/E multiple of 66. Still, that's down from 100, which likely played a role in the stock's downfall this year despite still impressive sales growth. Meanwhile, the S&P 500 index has a P/E ratio of 26.
Those individual stock valuations, particularly in comparison to the market, seem like you should steer clear of both. However, I like one in particular despite the rich valuation.
Starbucks has done a good job turning around its business and should be applauded. However, the expansion opportunities just aren't the same.
Dutch Bros stands out for its growth opportunity. It still has a vast opportunity domestically, and it hasn't even tapped the international market.
The company's methodical approach to expansion has been paying off. Notably, management recently walked away from the bidding for Salad and Go's 65 locations in Arizona, Nevada, Oklahoma, and Texas. Some may balk at the decision, but I applaud management sticking to a financially disciplined approach rather than increasing its offer.
With a financially responsible growth plan, I believe long-term investors will find that paying the higher multiple for Dutch Bros is worthwhile.
Should you buy stock in Starbucks right now?
Before you buy stock in Starbucks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Starbucks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros and Starbucks. The Motley Fool has a disclosure policy.

Starbucks Is Up 24% This Year While Dutch Bros Is Down 24%. Here's Why Only 1 of These Coffee Stocks Is a Buy in September.

Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus List
Building an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List Methodology
When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Starbucks (SBUX)
Starbucks is a global roaster, marketer and retailer of specialty coffee, operating in 90 markets worldwide. As of March 29, 2026, the company had 41,129 company-operated and licensed stores. The United States and China represented 61% of the global portfolio, with 16,944 stores in the United States and 7,991 in China.
SBUX, a #3 (Hold) stock, was added to the Focus List on August 16, 2019 at $95.93 per share. Since then, shares have increased 8.9% to $104.47.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.17 to $2.58. SBUX also boasts an average earnings surprise of 8.4%.
Additionally, SBUX's earnings are expected to grow 21.1% for the current fiscal year.
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Earnings Growth & Price Strength Make Starbucks (SBUX) a Stock to Watch

McDonald’s Corporation MCD has pushed its target of reaching 50,000 restaurants globally to 2028 from the end of 2027, citing higher development costs and a pressured consumer environment. The adjustment follows a review of its restaurant pipeline and signals a more measured approach to expansion.
The decision reinforces McDonald’s established focus on investment returns. The company adjusted its opening pace to support appropriate returns on new locations, emphasizing the quality of development alongside the number of openings. It continues to see significant opportunities to expand its footprint despite the revised schedule.
Despite the adjustment, McDonald’s said it remains in the fastest period of restaurant growth in its history. The company remains on track to open approximately 2,600 gross restaurants in 2026. New openings are contributing to growth, with second-quarter systemwide sales increasing 4% year over year in constant currency.
For McDonald’s, moderating expansion could help preserve the financial appeal of new locations as investment costs rise. The longer timeline provides flexibility to pursue growth at a pace consistent with its return objectives. This supports a disciplined approach to development, with new-restaurant performance remaining the key indicator of success.
Key Competitors Taking Different Paths on Unit Growth
Starbucks Corporation SBUX is taking a more selective approach to coffeehouse development as it works to build a stronger store base. Management said every new coffeehouse must “earn its place,” while net new company-operated unit growth in North America may remain modest through fiscal 2027. Starbucks is also gaining greater visibility into underperforming locations that could be closed while rebuilding its U.S. development pipeline and directing near-term resources toward coffeehouse uplifts, where early results are showing transaction gains. International markets are expected to remain a meaningful contributor to unit growth, supporting the company’s fiscal 2026 target of approximately 600-650 net new coffeehouses.
Dutch Bros Inc. BROS continues to pursue a faster unit expansion strategy, supported by strong new-shop productivity and a growing development pipeline. The company opened 48 system shops in the second quarter and has approximately 90% of the pipeline needed to reach 2,029 shops by 2029. Management said new-shop productivity remained strong alongside rising systemwide AUVs, while several newer markets were annualizing above expectations. Company-operated shop contribution margin reached approximately 31% in the second quarter, although higher coffee and occupancy costs are expected to pressure adjusted EBITDA margin in 2026. With at least 185 system shop openings expected this year, Dutch Bros’ approach contrasts with MCD’s more measured expansion pace, highlighting the importance of new-store productivity and disciplined development as restaurant operators balance growth with attractive returns.
MCD’s Price Performance, Valuation & Estimates
Shares of McDonald’s have declined 18.3% over the past year compared with the industry’s fall of 7.5%.
MCD’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.22, above the industry’s average of 3.23.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) implies a year-over-year rise of 5.5%. The EPS estimates for 2026 have declined in the past 30 days.
EPS Trend of MCD Stock
MCD’s Zacks Rank
MCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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Can MCD's Slower Expansion Pace Help Protect New-Restaurant Returns?

Key Points
High-profile IPO stocks are often expensive at first, which can set the stage for a fall.
Stocks often become more attractively priced after their lockup periods expire.
You don't have to buy a stock right at IPO to experience life-changing gains.
Investors love initial public offerings (IPO). An IPO is when a private company goes public for the first time, and, in theory, it is the best time to buy shares. However, that's not always the case. In fact, in many cases, it's best to avoid IPO stocks. Here's what most investors get wrong.
What happens at IPO
An IPO is the first time that any outside investor can buy shares of a company's stock on an open market. Before an IPO, investors usually provide private seed money. These days, there are funds that offer access to private equity, providing retail investors with an early channel to invest in companies before they go public. But in general, an IPO is the first chance to invest in a company.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, even the IPO is largely unavailable to individual investors. Most IPO stocks go straight to institutional investors, and they receive their shares before the first day of trading. Once they start trading on a public exchange like the New York Stock Exchange (NYSE) or the Nasdaq, they're available to anyone with a trading account.
Recently, many high-profile stocks have set aside some IPO shares for retail investors. Trading platforms like Robinhood Markets and SoFi Technologies offer IPO access to members who request shares, but they don't always get them. Elon Musk, for example, set aside 20% of Space Exploration Technologies (NASDAQ: SPCX) IPO shares for retail investors, according to reports, but the IPO was reportedly oversubscribed by four or five times the shares being sold, and not all requests were granted.
When is the right time to buy?
The problem with many IPOs is that they get hyped up to unreasonable prices. SpaceX, for example, was initially priced at $130 for the IPO, and by the time the markets opened on the first day of trading, it was already touching $150 per share. That was around 100 times trailing 12-month sales, which is an astronomical valuation. (The company isn't profitable so there isn't a price-to-earnings ratio.) However, investors were still rushing to get shares, and the stock shot higher out of the gate before falling a few days later. It now sits at about $148, or slightly below its first-day trading price, but it was well below the IPO price for a while, too.
The IPO, or even the first day of trading, isn't always the right time to buy. In lower-profile IPOs, if you've studied the business and believe it's a good long-term investment, your stock has time to grow before the market catches on. But in high-profile IPOs, enthusiastic investors can sometimes bid up a stock to unreasonable highs out of excitement, setting it up for a fall. It's usually prudent to wait out that cycle before investing in a great IPO stock.
There's another reason it could make more sense to wait. IPOs have a lockup period when insiders and early investors can't sell their shares on the open market. Employees of a private company may have stock options that become valuable when the company goes public, and they are often priced well below the IPO price. To prevent a flood of new shares into the open market that could distort the stock's price, insiders typically are restricted from selling right away. Usually, the lockup period is 180 days, by which time the stock is expected to settle into a reasonable market price. The stock price often does fall after the lockup period expires, which could be a more auspicious time to buy.
You don't need to buy right away to maximize your gains
As with the SpaceX IPO, you might be able to get your hands on a stock for even less than the IPO price if you wait for a better entry point. But you don't need to get in right away to be successful. IPO stocks are often risky, and it could make more sense to wait until it's on a more solid footing before deciding it's worth your money. Over time, a great stock will provide value for shareholders who hold for long periods, and it doesn't matter if they got in right away.
Here are some examples of total returns when a stock was bought after it was already public for a year, and I didn't only choose the obvious examples:
Amazon: IPO on May 15, 1997. Gain today from one year later: 69,120%
Nvidia: IPO Jan. 22, 1999. Gain today from one year later: 613,000%.
Visa: IPO March 19, 2008. Gain today from one year later: 3,130%.
Starbucks: IPO June 26, 1992. Gain today from one year later: 18,710%.
These are just a few examples to make the point, but I would also note that if you spot a great stock, you can buy it and enjoy gains at any time.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has positions in and recommends Amazon, Nvidia, Starbucks, and Visa. The Motley Fool has a disclosure policy.

I've Covered Many IPOs for The Motley Fool. Here's What Most Investors Get Wrong.

Key Points
Starbucks' fall debut of the Pumpkin Spice Latte and the limited release of its Unicorn Frappuccino have driven record sales.
This should add fuel to the company's ongoing turnaround.
The past couple of years have been filled with uncertainty for Starbucks (NASDAQ:SBUX) shareholders. The company delivered consistently higher financial and operating results -- and then the bottom dropped out. The combination of economic uncertainty and complacency drove tepid results, and the backlash was both swift and severe. Starbucks stock was punished, falling 32% over several months last year.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
More recently, however, things are looking up. CEO Brian Niccol has engineered an impressive turnaround. Just last week, Starbucks reported the company's biggest-ever fall menu launch in North America.
Image source: Starbucks
It's the Great Pumpkin (Spice)
In a press release, the company revealed that Aug. 25 marked the strongest fall launch day in Starbucks history. The record-setting day signaled the return of the company's perennial favorite -- the Pumpkin Spice Latte.
From the press release:
More than two decades after the Pumpkin Spice Latte debuted, it remains a seasonal icon, bringing customers together around familiar flavors, comforting rituals, and moments of connection.
In addition to returning favorites like the Pumpkin Spice Latte and Pumpkin Cream Cold Brew, Starbucks unveiled the new Iced Pumpkin Cream Shaken Espresso, which was a hit with java fans. The company also introduced the Hedgehog Cake Pop, which "delivered record-breaking single-day sales for fall launch, making it Starbucks' top-selling fall cake pop ever."
While this might not seem like a big deal, this is the latest sign the coffee purveyor is back.
Last month, Starbucks announced the return of its fan-favorite Unicorn Frappuccino for a limited run. The special event drew customers in droves, as the company sold more than 2 million of the frosty beverages, fueling a record-setting weekend for Starbucks and the biggest Saturday sales day in company history.
A turnaround for the ages? Maybe...
There's no denying that the comeback Niccol has engineered thus far has been nothing short of remarkable, but even he admits there's still more work to do. That said, Starbucks' most recent results are impressive.
For its fiscal 2026 third quarter (ended June 28), Starbucks delivered its fourth consecutive quarter of global same-store sales growth, after a seven-quarter drought. Comps increased 7.9%, driven by a 4.2% increase in transactions and a 3.5% increase in the average ticket. Revenue was down just 1% year over year to $9.3 billion, though that decline was partially due to the divestiture of its China operations. As a result, adjusted earnings per share (EPS) climbed 70% to $0.85.
Starbucks raised its full-year 2026 outlook and is now guiding for U.S. and global comps of 6% or more, up from its previous forecast for 5% growth issued just last quarter.
The company is on track for an impressive Q4, with a record-setting special promotion and a record fall menu launch. Investors will be watching closely to ensure this strategy continues to bear fruit, but things are looking positively caffeinated for Starbucks.
The stock is up 24% so far this year, nearly double the 12.75% return of the S&P 500. Starbucks is no longer a screaming bargain, selling for 34 times next year's expected sales. However, if Niccol's "Back to Starbucks" strategy continues to gain traction, that multiple might prove to be a bargain.
Should you buy stock in Starbucks right now?
Before you buy stock in Starbucks, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Starbucks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,402,153!*
Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Danny Vena, CPA has positions in Starbucks. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

CEO Brian Niccol Just Announced Incredible News for Starbucks Investors

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco QQQ Trust (Symbol: QQQ) where we have detected an approximate $1.9 billion dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 680,700,000 to 683,300,000). Among the largest underlying components of QQQ, in trading today Palantir Technologies Inc (Symbol: PLTR) is off about 3.2%, Netflix Inc (Symbol: NFLX) is off about 2.1%, and Starbucks Corp. (Symbol: SBUX) is lower by about 0.1%. For a complete list of holdings, visit the QQQ Holdings page » The chart below shows the one year price performance of QQQ, versus its 200 day moving average:
Looking at the chart above, QQQ's low point in its 52 week range is $555.60 per share, with $748.65 as the 52 week high point — that compares with a last trade of $719.34. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further QQQ Research:

QQQ, PLTR, NFLX, SBUX: ETF Inflow Alert

McDonald’s Corporation MCD is trading at a valuation that appears relatively attractive compared with the broader restaurant industry. The company’s forward 12-month P/E multiple of 19.15X is below the industry average of 22.57X, suggesting that investors are taking a more cautious view of the fast-food giant despite its powerful brand, global scale and resilient franchise-driven business model.
P/E (F12M)
The discount follows a difficult period for the stock. MCD’s shares have declined 20.8% over the past six months, compared with a 10.2% drop for the restaurant industry. The stock has also lagged the S&P 500’s 12% gain, as investors have favored companies with stronger near-term growth prospects. McDonald’s has underperformed restaurant peers including Starbucks Corporation SBUX, Yum! Brands, Inc. YUM and Chipotle Mexican Grill, Inc. CMG.
The key question for investors is whether this weakness reflects longer-lasting fundamental concerns or creates an attractive entry point into a globally recognized restaurant leader.
U.S. Weakness Weighs on Performance
McDonald’s second-quarter results highlighted both its strengths and the areas requiring improvement. Global comparable sales increased 1.3%, while systemwide sales rose 4% in constant currency. Adjusted EPS came in at $3.38, up 5% year over year on a constant-currency basis.
However, the U.S. business remained a key weakness. Comparable sales increased just 0.8% in the quarter, as execution issues affected traffic and customer experience. Management attributed roughly two-thirds of the U.S. traffic shortfall compared with expectations to problems surrounding value execution. The weaker-than-expected impact of the FIFA marketing campaign compounded the underperformance.
The company also acknowledged that restaurant teams were burdened by too many simultaneous product launches, promotions and operational changes. Management plans to simplify restaurant operations and provide crews with greater support, while increasing targeted digital offers and reallocating marketing spending toward proven value programs such as Extra Value Meals.
Importantly, McDonald’s does not view these issues as a fundamental strategy problem. Management believes the primary opportunity is to improve execution, particularly around value, operations and marketing.
International Business Provides Stability
McDonald’s international operations continue to offer an important counterbalance to U.S. weakness. Comparable sales increased 1.5% in International Operated Markets, with Germany, Australia and the United Kingdom performing well. International Developmental Licensed Markets posted 1.9% comparable-sales growth, led by Japan, which delivered its 10th consecutive quarter of positive comparable guest-count growth.
Management expects comparable-sales growth in both international segments to accelerate sequentially in the third quarter, offering a potential source of momentum while the U.S. business works through its execution challenges.
Beverages and McDonald’s NEXT Could Support Growth
One of the more encouraging developments is McDonald’s new beverage platform. Early results in the United States, Canada and Germany exceeded expectations, with beverages generating new occasions, higher guest checks and strong food attachment. More than half of beverage-related traffic is occurring after lunch, while average checks are about 50% above the full-day average.
Longer term, management is positioning McDonald’s NEXT as a growth framework focused on improving food taste and quality, enhancing hospitality, simplifying restaurant operations and strengthening customer engagement. The company expects productivity gains to help fund investments associated with the strategy.
MCD is also maintaining the restaurant expansion plans, although it has pushed the 50,000-restaurant target to 2028 from 2027 because of inflationary development costs and a more pressured consumer environment. McDonald’s still expects to open roughly 2,600 gross restaurants in 2026.
McDonald’s Growth Outlook Remains Encouraging
Analysts continue to see room for earnings growth at McDonald’s, although estimates have been mixed recently. Over the past 30 days, the Zacks Consensus Estimate for 2026 earnings increased 2 cents to $12.87 per share, while the 2027 estimate declined 13 cents to $13.89. Despite the revisions, the estimates imply solid year-over-year EPS growth of 5.5% in 2026 and 7.9% in 2027.
Revenue expectations also point to continued expansion. The Zacks Consensus Estimate projects revenues of $28.15 billion in 2026 and $29.51 billion in 2027, representing year-over-year growth of 4.7% and 4.8%, respectively. These projections indicate that McDonald’s remains positioned for steady top-line and earnings growth, supported by its global scale, restaurant expansion and ongoing initiatives to strengthen customer traffic and engagement.
Why Investors Should Hold MCD
McDonald’s has strong long-term potential, backed by its powerful brand, global presence and franchise model. Its beverage platform and McDonald’s NEXT strategy could support growth.
However, the U.S. business still faces execution issues in value, operations and marketing. Management is taking steps to address these challenges, but the recovery may take time. Existing investors should hold MCD and wait for clearer signs of improvement. New investors may want to wait before buying, as stronger U.S. traffic and execution would provide greater confidence in the recovery.
MCD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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McDonald's Trades at 19.15X P/E: Is This a Discounted Opportunity?

Dutch Bros Inc. BROS maintains its 2026 systemwide same-shop sales growth outlook of 5-6%, with performance expected to trend toward the midpoint of the range. The outlook incorporates an anticipated moderation to approximately 4-5% in the third quarter. Second-quarter systemwide comps increased 5.8%, including transaction growth of 1.7%, while company-operated comps advanced 8.3% on a 3.4% increase in transactions.
The second quarter of 2026 extended BROS’ streak to 13 consecutive quarters of positive comparable sales and eight straight quarters of transaction growth. Performance benefited from the continued food rollout, maturation of newer shop vintages, brand-marketing initiatives and customer segmentation within Dutch Rewards. Comparable sales remained positive across all dayparts, with particular strength during the morning.
The second-half outlook reflects a more demanding comparison profile. Approximately one percentage point of pricing rolled off in early July, reducing the expected effective pricing contribution to less than one percentage point during the period. Transaction comparisons are also expected to become progressively more difficult through the remainder of the year.
The anniversary of the food rollout creates an additional comparison. BROS began introducing the program in the third quarter of 2025 and expanded it more meaningfully during the fourth quarter. Consequently, second-half 2026 results will be measured against periods that already included food sales. The company expects this comparison to affect primarily net ticket.
Despite the anticipated moderation in third-quarter comparable-sales growth, BROS has not changed its full-year systemwide comparable-sales outlook. Continued maturation of newer shops and strength in the morning daypart are likely to support comparable-sales performance during the remainder of 2026.
How MCD and SBUX Compare on Comparable-Sales Momentum
McDonald’s Corporation MCD is pursuing a more measured comparable-sales recovery. McDonald’s reported second-quarter global comp growth of 1.3%, with the United States increasing 0.8%. U.S. comps turned slightly negative in July as execution challenges carried into the third quarter. McDonald’s is focused on placing its U.S. baseline momentum in a stronger position by the end of 2026. International markets present a firmer outlook, with third-quarter comp growth in IOM and IDL expected to accelerate sequentially from second-quarter rates of 1.5% and 1.9%, respectively.
Starbucks Corporation SBUX enters its fiscal fourth quarter with stronger comparable-sales momentum. The company generated fiscal third-quarter global and U.S. comp growth of 7.9%, while U.S. transactions increased 4.2%. Starbucks expects fiscal fourth-quarter U.S. comps to rise 6.5% or better, implying full-year U.S. growth of slightly more than 6% and global growth approaching 6%. Starbucks acknowledged the tougher year-over-year traffic comparisons and continued variability in the broader consumer environment.
BROS’ Price Performance, Valuation & Estimates
Shares of Dutch Bros have declined 12.7% in the past six months compared with the industry’s fall of 10.9%.
BROS’ Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 3.25, below the industry’s average of 3.27.
BROS’ P/s Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 27.6%. The EPS estimates for 2026 have increased in the past 30 days.
EPS Trend of BROS Stock
Dutch Bros stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can BROS Meet Its 5-6% Comp Target in 2026 Amid Tougher Comparisons?

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Indicator	TTM Median
P/E	61.36 18.27
Price/Sales	3.16 0.68
P/B	0.00 1.73
P/FCF	33.31 13.56

Indicator	TTM Median
ROE	0.00 14.93
ROA	6.44 5.11
ROI	37.00 8.85
Net Worth	121.41 0.84
Quick Ratio	0.54 0.86
Current Ratio	0.76 1.39

Indicator	TTM Median
Net Profit Margin	5.17 5.79
Operating Margin	7.76 8.49
Gross Margin	67.70 39.55
Return on tangible equity	0.00 21.78

Indicator	TTM Median
EPS	0.85 0.55
EPS Forecast	0.66 0.50
Revenue	9.32B 193.00M
Gross Profit	6.49B —
EBITDA	1.37B —

Starbucks Corporation

Recent quarterly and TTM performance

Valuation

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Revenue