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 not cheap business: operating profit and net profit have recovered, but the valuation already reflects a significant portion of the improvement. On valuation multiples, the picture is stretched: P/E of 54.84, P/S of 3.03, and P/FCF of 29.77 are noticeably above the industry median, indicating a premium to the sector and limiting re-rating potential. At the same time, the recent trend in P/E and P/FCF has generally declined from higher levels, which slightly improves the picture, but does not remove concerns about an expensive valuation. Profitability remains strong: gross margin of 67.7% is significantly above the industry, while operating margin of 7.76% and net margin of 5.17% look acceptable, although compared with the best levels in prior periods they do not show clear acceleration. ROA of 6.44% and ROI of 37% support the view of decent capital efficiency, but ROE and return on tangible equity are not disclosed because of negative shareholder equity, which in itself is a significant risk. The company’s balance sheet is weak: current ratio of 0.76 and quick ratio of 0.54 are below comfortable levels, and total shareholder equity remains negative, making financial stability less reliable. Debt is declining, however: long-term debt has decreased from higher levels, and cash on hand of $3.61 billion provides a liquidity cushion, but does not fully offset the weak capital structure. Revenue and earnings remain large and generally stable, and net income of $1.045 billion and EBITDA of $1.37 billion confirm the business’s ability to generate cash flow. Dividend yield is currently zero, and historically it has been moderate, so the dividend factor does not support the valuation. Overall, the fundamentals are rather neutral-to-positive in terms of business quality, but they are constrained by a high valuation and a balance sheet that remains vulnerable. For an investor, this means there is upside potential, but it is already partly priced in, so a moderate conservative downward adjustment to the forecast is appropriate.

Starbucks Corporation

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Слабый индекс, незначительно вырос

Starbucks demonstrates strong margins and profitability, but its expensive valuation multiples and weak balance sheet limit upside and warrant a cautious reassessment.

Key Points
Dutch Bros stock has fallen 33% in 2026, even as the business keeps growing.
Sales are up 58% over three years, and free cash flow has tripled
A drive-through model makes new Dutch Bros stores faster and cheaper to build.
Dutch Bros (NYSE: BROS) is struggling. At least, that's the way it looks when you're checking out its stock chart. The coffee chain's share price is down 33% year-to-date as of Oct. 16. At the same time, Dutch Bros is doing pretty much everything right.
Is the fast-growing coffee stock a good buy right now?
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Brewing up strong results
I'm not kidding about the company's business performance.
Dutch Bros keeps beating analyst expectations across the board in every earnings report, often by a wide margin.
Trailing sales are up 58% over the last three years. The store count increased by 62% to 1,225 locations over the same period. Diluted earnings per share? Up 142%. Free cash flow tripled.
Same-store sales also tick up in almost every report, including a 3.8% year-over-year jump in Q2 2026.
And the founder-led management team has a very specific growth plan. Dutch Bros should have 2,029 stores in the year 2029. Beyond that punny target, the company could reach 7,000 domestic stores before looking for international growth.
What makes Dutch Bros different
Dutch Bros backs up its strong results and ambitious plans with concrete business advantages.
Customer-friendly baristas are kind of expected at every coffee shop, but an outgoing personality is a written requirement for this company's "broistas." A wide variety of flavoring syrups and toppings lets every customer create their own dream drink. In hot, humid states or seasons, the company sells a ton of energy refreshers and blended freeze coffees -- cold drinks for a warm day.
And the company's focus on the drive-through experience brings another important advantage. The shops don't come with sit-down dining areas that require cleaning and maintenance. Furthermore, the resulting tiny footprint makes the store construction a bit faster and cheaper. The network would expand much more slowly if Dutch Bros insisted on cozy sit-downs in the Starbucks style.
Time to grab a cup of Dutch Bros?
So yes, it's time to buy this stock. Dutch Bros is doing everything right except pleasing the stock market. The business keeps firing on all cylinders, and the market is handing out a 33% discount on a long-term growth story.
Should you buy stock in Dutch Bros right now?
Before you buy stock in Dutch Bros, 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 Dutch Bros wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Dutch Bros Has Lost a Third of Its Value in 2026. Is It Time to Buy?

Key Points
Starbucks' CEO once engineered a turnaround at Chipotle.
He's also attempting to turn around poor sales at Starbucks.
Shares of Chipotle Mexican Grill (NYSE: CMG) soared this past Thursday on news that Starbucks (NASDAQ: SBUX) has been considering an acquisition of the fast-casual burrito chain.
On Thursday, The Financial Times reported that Starbucks has been working with advisors in recent months on a takeover proposal for Chipotle. Chipotle shares were up almost 7% in late morning trading on Thursday, while Starbucks' share price dropped more than 3%.
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It's far from certain that Starbucks will actually attempt the takeover. It would be a massive deal, as Chipotle's market capitalization is north of $41 billion. And the acquisition could also face antitrust obstacles, though the Trump administration has so far not applied those laws strictly.
FT reports that an acquisition of Chipotle would be the biggest-ever merger in the restaurant sector, dwarfing Burger King's 2014 acquisition of Canadian coffee chain Tim Hortons, at around $11.4 billion.
Starbucks' CEO has engineered corporate turnarounds before
Interestingly, Starbucks CEO Brian Niccol is a former Chipotle CEO. He led the restaurant for six years. Since he left, the company's share price has fallen by nearly half. Niccol also worked for Yum! Brands, which owns KFC and Taco Bell.
Niccol engineered a well-respected turnaround at Chipotle after becoming CEO in 2018. While he was there, sales soared, and the share price climbed more than eightfold, moving from around $6 to $56. He has been attempting the same kind of transformation at Starbucks, which recorded six consecutive quarters of falling sales from early 2024 to late 2025.
Customers had complained about their experience at the coffee shops, including long lines, too few employees, and inconsistent product offerings. Niccol's "Back to Starbucks" turnaround plan has attempted to make service more consistent and faster, and make the coffeehouses' environments warmer.
Since Niccol left Chipotle in late August 2024 to take the helm at Starbucks, Chipotle's share price has fallen by about 40%. Starbucks shares are down about 5% since that date.
The latest news that Niccol is looking at combining the two chains suggests he sees more value in Chipotle than investors do; that, with the share price significantly below where it was when he left, he believes the price of an acquisition is favorable right now; and that he thinks he can lead the combined company's stock price higher, possibly benefiting from synergies that come from mergers.
With Chipotle shares up sharply on the news, it seems investors believe Niccol could improve that business once again, though the undertaking might divert his attention from Starbucks' operations.
Should you buy stock in Chipotle Mexican Grill right now?
Before you buy stock in Chipotle Mexican Grill, 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 Chipotle Mexican Grill wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends Yum! Brands and recommends the following options: short December 2026 $38 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
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Chipotle Shares Are Soaring on News That Starbucks May Acquire It

Key Points
According to research, 79% of shoppers are trading down.
Premium companies that can maintain or raise prices are performing well despite inflation.
These kinds of stocks can continue to grow long term, representing great investing opportunities.
What makes a great stock? That seems to be an obvious question for every investor, but the answer isn't always as obvious. Is it a revolutionary product? New technology? Fantastic growth? Strong cash flow? Clearly, different qualities resonate with different investing styles.
From a long-term investing standpoint, one of the most important factors separating winners from losers is pricing power. It means that a company can charge more for its product without curbing demand, and it implies that the company has an excellent brand with a strong following. Companies with pricing power can withstand challenging times and grow into bigger, better companies.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
There's no better time to access this than in a high-inflation climate. According to a McKinsey report, 79% of consumers are trading down. As consumers become more choosy about how they spend, notice which companies don't have to cut prices to generate sales. Consider these five powerhouses: Costco Wholesale (NASDAQ: COST), Coca-Cola (NYSE: KO), On Holding (NYSE: ONON), Starbucks (NASDAQ: SBUX), and Procter & Gamble (NYSE: PG).
1. Costco
Costco is a discount king, but what makes it stand out in terms of pricing power is its membership fee. It raised the fee in 2025 from $60 to $65, or $110 to $120 for an executive membership, but its renewal rates and signups have been strong. On the contrary; shoppers tend to shop at Costco even more when times are tough and every penny counts to get the most out of their membership and the best prices.
In the 2026 fiscal fourth quarter (ended Aug. 30), total sales increased 11.2% year over year to $93.9 billion, driven by a 9.4% increase in comparable sales (comps). Average ticket was up 5.9%, but management said it's keeping prices down, implying that the increases are due to consumers buying more.
2. Coca-Cola
Coca-Cola is the classic example of a company with great pricing power, and that's one of the reasons Warren Buffett loves its business. People need to have something to drink, and they love Coca-Cola. The company has taken many actions to keep consumers buying despite inflation, including new marketing campaigns, smaller, lower-cost packages, and working with retailers to keep its beverages in front of shoppers.
The results have been fantastic. Sales increased 6% year over year in the second quarter, although unit care volume was up 1%. Higher pricing is offsetting rising costs, and earnings per share (EPS) rose 30% to $0.86.
This model has led to extraordinary success over time, and Coca-Cola pays shareholders back with its excellent dividend, which it has raised for 64 years, making it a Dividend King (a designation for companies that have raised dividends for 50 or more consecutive years).
3. On Holding
On Holding is a relatively new player in athleisure and athletic footwear, and it's positioning itself as the leader in premium products. It has cultivated a major following and targets affluent consumers, which has helped it withstand the need to mark down its products in the current operating environment.
In the second quarter, revenue increased 21.6% year over year (currency neutral) and 34.3% in its direct-to-consumer channels, indicating customer loyalty. It has maintained its pricing and image, and gross margin improved from 61.5% to 65.4%. It has signed important celebrity ambassador deals with names like actress Zendaya and soccer star Kylian Mbappe to secure its branding as a power player in its industry. Management got a thumbs-up from the market when it announced at its investor day that it was confident in its ability to retain its premium status and maintain gross margins of 65% through 2029.
4. Starbucks
Starbucks has had a rough time over the past few years, but under the new leadership of CEO Brian Niccol, things are starting to turn around. The pricing power is actually working in its favor; previous management had run too many specials, diluting the brand. Niccol has taken the opposite approach, cutting the specials and leaning into the company's premium image. It's working.
In the 2026 fiscal third quarter (ended June 28), global comps increased 7.9% year over year, driven by a 4.2% increase in transactions and 3.5% increase in average ticket. That means that even as inflation rages, more people are coming back for Starbucks' high-priced beverages. Profits are increasing, too, which Niccol has said would happen after it fixes comps, and earnings-per-share (EPS) grew 86% to $0.91.
5. Procter & Gamble
Procter & Gamble makes many of the premium beauty and hygiene brands you know and love, and are willing to pay a little bit more for. That's what it counts on, and sales typically increase by low single digits even in rough times. While some customers switch down to generic brands, many pay up for the small luxuries of brands they see as a value because they're better. These are names like Pampers diapers, Tide laundry detergent, and Puffs facial tissues.
Price increases contributed to sales increases in three of its five categories in the 2026 fiscal fourth quarter (ended June 30), and total sales increased 2% year over year. Instead of cutting prices to boost growth, it's doubling down on its premium positioning and generating higher consumer loyalty.
Procter & Gamble is also a Dividend King and has raised its dividend for the past 70 years.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, 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 Coca-Cola 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 $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
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Jennifer Saibil has positions in On Holding. The Motley Fool has positions in and recommends Costco Wholesale, On Holding, and Starbucks. The Motley Fool has a disclosure policy.

As Shoppers Trade Down, These 5 Brands Still Have Pricing Power

(RTTNews) - Starbucks (SBX) has explored a potential takeover of Chipotle Mexican Grill, a move that could create the largest deal in restaurant industry history.
The coffee chain has worked with advisers in recent months on a possible proposal for Chipotle, which had a market value of about $41 billion. It remains unclear whether Starbucks has made a formal offer, and the discussions could ultimately fail to produce a transaction.
Chipotle shares jumped 7.2 percent following the report, while Starbucks shares fell 4.4 percent, valuing the coffee company at about $102 billion. A deal would surpass Burger King's $11.4 billion acquisition of Tim Hortons in 2014.
The combined company generated nearly $50 billion in sales last year, with Starbucks operating about 41,000 stores and Chipotle roughly 4,200 restaurants.
The potential deal would reunite Starbucks CEO Brian Niccol with Chipotle, where he served as chief executive for more than six years and led a major turnaround. Starbucks is also pursuing its own recovery under Niccol's "Back to Starbucks" strategy.
Analysts have questioned the strategic rationale, noting limited obvious revenue synergies despite potential cost savings.

Starbucks Explores Takeover Of Chipotle In Potential Record Restaurant Deal

Starbucks announced that its Board of Directors has approved an increase in the company's quarterly cash dividend from $0.62 to $0.63 per share of outstanding Common Stock. The increased dividend will be payable in cash on November 27, 2026, to shareholders of record on November 13, 2026. This change reflects an annualized dividend rate of $2.52 per share. "Today's dividend increase reflects our continued confidence and belief that disciplined execution of our Back to Starbucks strategy will drive sustainable long-term growth and value creation," said Cathy Smith, chief financial officer. Starbucks Coffee Company first initiated its dividend program in 2010 with a quarterly payout of $0.05 per share and has since grown its dividend at a compound annual growth rate of approximately 17%. This growth underscores the company's long-standing commitment to returning value to shareholders.
CF Industries Holdings reported that its board of directors has declared a $0.60 per share dividend on its common stock. The dividend will be payable on November 30, 2026, to stockholders of record as of November 16, 2026.
Carrier Global, global leader in intelligent climate and energy solutions, announced today that its Board of Directors declared a quarterly dividend of $0.24 per outstanding share of Carrier common stock. The dividend will be payable on Nov. 18, 2026, to shareowners of record at the close of business on Oct. 29, 2026.
AGNC Investment announced that its Board of Directors has declared a cash dividend of $0.12 per share of common stock for October 2026. The dividend is payable on November 10, 2026 to common stockholders of record as of October 30, 2026.
Diversified Healthcare Trust today announced a regular quarterly cash distribution on its common shares of $0.01 per share, $0.04 per share per year. This distribution will be paid to DHC's common shareholders of record as of the close of business on October 19, 2026 and distributed on or about November 12, 2026.

Daily Dividend Report: SBUX,CF,CARR,AGNC,DHC

McDonald’s Corporation MCD is looking beyond its traditional burger-and-fries business to beverages as a potentially meaningful source of incremental growth. The company’s new beverage platform, launched in May 2026, has generated encouraging early results across the United States, Canada and Germany, with Australia joining the rollout in mid-July. Management said performance has generally met or exceeded initial expectations across these markets.
The opportunity is particularly compelling because beverages can create incremental visits during underutilized dayparts. More than half of traffic associated with the new platform is occurring after lunch, when McDonald’s restaurants typically have lower volumes and greater capacity. Moreover, strong food attachment has lifted average checks, which management said are roughly 50% above the company’s full-day average for these beverage transactions.
Germany offers an early indication of the broader opportunity. The market introduced the full lineup of cold coffee, crafted sodas, refreshers and energy beverages, generating meaningful incremental contributions to comparable guest counts, sales and restaurant-level cash flow.
The platform also fits squarely within the McDonald’s > NEXT strategy. Management said U.S. beverage sales are ahead of plan, while higher guest checks, new daypart occasions and strong food attachment are reinforcing momentum. More importantly, McDonald’s views beverages as a baseline growth platform capable of delivering multiple years of opportunity and plans to extend it into additional markets.
With more than 45,000 restaurants across over 100 countries, McDonald’s has the scale to broaden successful beverage concepts rapidly. If early traffic, check and cash-flow gains persist as the rollout expands, beverages could become a meaningful new global growth wave for the company.
How Rivals SBUX and CMG Are Expanding Beverage Opportunities
McDonald’s is not alone in targeting beverages as a way to create new occasions and drive incremental traffic. Starbucks Corporation SBUX and Chipotle Mexican Grill, Inc. CMG are also leaning on beverage innovation to support growth.
Starbucks is expanding its Refreshers platform, which delivered double-digit U.S. revenue growth in the third quarter of fiscal 2026. Customizable energy offerings, new flavors and planned sparkling beverages are helping the company target both morning and afternoon occasions, with management viewing Refreshers as an important tool for expanding the afternoon daypart.
Chipotle is accelerating menu innovation across proteins, sides, desserts and beverages, with management identifying beverages as an area with significant untapped potential. The company is developing new beverage concepts as it looks to broaden customer occasions and give guests more reasons to visit. Management expects some of its broader menu innovations to reach restaurants in the second half of 2026 and into 2027.
MCD’s Price Performance, Valuation & Estimates
McDonald’s shares have lost 13.1% in the past three months, outperforming the Zacks Retail - Restaurants industry, but underperforming the broader Retail and Wholesale sector and the S&P 500 index.
MCD Three-Month Price Performance
In terms of its forward 12-month price-to-earnings ratio, MCD is trading at 17.27, down from the industry’s 19.94.
MCD P/E (F12M)
MCD’s earnings estimates for 2026 and 2027 have trended downward in the past seven days. The revised estimates for 2026 and 2027 imply year-over-year growth of 5.3% and 7.2%, respectively.
MCD Estimate Trend
MCD 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 McDonald's Beverage Expansion Become Its Next Global Growth Wave?

Starbucks (NASDAQ: SBUX) is closing 250 stores, which has significant implications for investors.
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*Stock prices used were the afternoon prices of Sept. 25, 2026. The video was published on Sept. 27, 2026.
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 $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% 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.
*Stock Advisor returns as of September 29, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Interesting News for Starbucks Stock Investors

(RTTNews) - The United Steelworkers union or USW condemned Starbucks' (SBUX) decision to close approximately 250 stores across North America, calling the move another example of a profitable multinational company prioritizing profits over workers.
The coffee chain announced that the closures, which could begin as early as this week, represent about 1% of its North American coffeehouse portfolio. While no USW-represented Starbucks locations have been identified for closure, the union said it is concerned about the potential impact on baristas and their families in both Canada and the United States.
The store closures are part of Starbucks' previously announced "Back to Starbucks" strategy. On September 22, 2026, the company's board approved additional actions under the plan following a review of its North American store network.
Starbucks said it will shut down approximately 1% of its more than 18,000 coffeehouses in North America that do not meet the brand's expectations for customer experience and financial performance. The company expects most of the closures to be completed by the end of fiscal 2026.
The initiative is expected to generate roughly $300 million in restructuring charges, including about $200 million in cash expenses primarily related to lease exit costs and employee separation benefits. The remaining $100 million will consist of non-cash charges associated with asset disposals and impairments at company-operated stores.
The closure program has also prompted Starbucks to revise its store growth outlook. The company now expects approximately 440 net new company-operated and licensed store openings globally during fiscal 2026, down from its previous forecast of 600 to 650 net new openings.
Starbucks said the reduction reflects the planned North American closures and will be partially offset by stronger expansion in international markets. Despite the move, the company said it continues to see significant long-term growth opportunities in North America and is developing a pipeline of new coffeehouse locations.
The USW noted that the latest announcement follows another significant round of Starbucks store closures last year and said it remains concerned about the effect of the company's restructuring efforts on employees.

United Steelworkers Union Condemns Starbucks Plan To Close 250 North American Stores

Key Points
Dutch Bros’ management team believes it can have 2,029 stores open by 2029, up from 1,225 today.
Competition from massive industry peers, as well as smaller rivals, will make things difficult for the business.
Unlike its caffeinated beverages, Dutch Bros (NYSE: BROS) shares haven't energized investors' portfolios. They currently trade 55% off their peak (as of Sept. 24).
However, the business does have notable potential. This is precisely what the thesis rests on. For example, management believes it will have 2,029 stores open by 2029, up from 1,225 locations as of June 30.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Here's what a $10,000 investment in this coffee stock could be worth by 2029 if it achieves this growth target.
Shares currently trade at a price-to-sales ratio of 2.6. If we assume that after four years, this multiple stays constant, then it implies that the stock will rise 66% by 2029 (mimicking store expansion) should it reach its store-opening goal. A starting $10,000 would be worth $16,600.
This assumes that revenue will grow at a compound annual rate of 18% over this period of time. Compared to the 30% yearly clip posted in the prior three years, this would mark a natural slowdown.
Investors must accept the fact that Dutch Bros' long-term success is far from a guarantee, despite how exciting a growth story it has been. The main headwind is how intensely competitive the retail coffee market is. There are massive rivals like Starbucks, McDonald's, and Dunkin', as well as smaller industry peers like 7 Brew Coffee, The Human Bean, and Biggby Coffee.
People have lots of choices. This will make it difficult for Dutch Bros to keep up its expansion.
Should you buy stock in Dutch Bros right now?
Before you buy stock in Dutch Bros, 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 Dutch Bros 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 $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — 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.
*Stock Advisor returns as of September 25, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros and Starbucks. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Prediction: Here's What a $10,000 Investment in Dutch Bros (BROS) Stock Could Be Worth by 2029

For Immediate Release
Chicago, IL – September 25, 2026 – Zacks Equity Research shares Hewlett Packard Enterprise HPE as the Bull of the Day and Tecnoglass TGLS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on McDonald Corp. MCD, Starbucks Corporation SBUX and Dutch Bros Inc. BROS.
Here is a synopsis of all five stocks:
Hewlett Packard Enterprise, a Zacks Rank #1 (Strong Buy), has pulled off one of the more impressive transformations in enterprise technology.
A company long dismissed as a slow-growth legacy hardware vendor has, in the span of about a year, remade itself into a genuine AI infrastructure and networking powerhouse — and the earnings estimates have been racing to catch up ever since.
The market has noticed. Shares have surged roughly 168% year to date, dramatically outpacing the broader technology sector's return of about 27%. That kind of relative strength, paired with accelerating fundamentals, is precisely what our rating system is built to identify.
A Leading Industry Group
HPE stock is part of the Zacks Computer – Integrated Systems industry group, an 11-stock cohort that currently ranks in the top 31% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics, and are also expected to experience above-average earnings growth – a combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Headquartered right outside of Houston, Hewlett Packard Enterprise provides servers, storage, networking, software and services to enterprises, governments and cloud providers worldwide. The business is organized around Networking, Cloud & AI, and Hybrid Cloud, supported by the HPE GreenLake platform that delivers IT as a consumption-based service.
The pivotal event was the Juniper Networks acquisition, which closed roughly a year ago and cleared its final legal hurdle in August when a federal court approved the company's settlement with the Department of Justice. Juniper transformed the scale and quality of HPE's networking business — the highest-margin part of the portfolio — and management reports integration is running ahead of schedule, with $600 million in annual run-rate synergies targeted by the end of fiscal 2028.
Alongside that, HPE has built a credible AI franchise spanning ProLiant servers co-engineered with NVIDIA, turnkey AI Factory deployments and Private Cloud AI solutions.
Earnings Trends and Future Estimates
The fiscal third quarter, reported earlier this month, was outstanding on every line. Revenue reached a record $12.21 billion, up 34% year over year and above the high end of guidance, topping the Zacks Consensus Estimate by 0.99%. Non-GAAP earnings of $1.11 per share crushed the 95-cent consensus by roughly 17% and rose more than 150% from a year ago.
The profitability story is the more remarkable one. Non-GAAP operating profit of $1.98 billion more than doubled, with operating margin expanding 770 basis points to 16.2% and non-GAAP gross margin reaching 40.4% against 29.9% a year earlier.
Free cash flow of nearly $1 billion was the highest third quarter in company history. HPE has now surpassed the Zacks Consensus Estimate in each of the trailing four quarters, averaging a 19.6% surprise.
Demand is outrunning shipments. Orders grew 42%, backlog hit a record, AI systems orders reached $2.4 billion (up more than 30% sequentially) and AI systems backlog climbed to $6.8 billion. After quarter-end, HPE was awarded a $3.5 billion inferencing deal with a hyperscaler customer, and it announced an expanded, multiyear collaboration with Oracle to supply routing and switching for a gigawatt-scale AI cloud build-out.
Management responded by raising guidance twice over. Fiscal 2026 revenue growth is now pegged at 34-37% with non-GAAP EPS of $3.75-$3.85 and free cash flow of at least $3.75 billion. The fiscal 2027 framework moved to 13-17% revenue growth, a 14-15% operating margin, EPS of $4.40-$4.60 and free cash flow of at least $5 billion.
Analysts have followed quickly: estimates for the current fiscal year have climbed 11.73% over the past two months. The Zacks Consensus Estimate now stands at $3.81 per share, reflecting better than 96% growth relative to the prior year.
Let's Get Technical
HPE has been one of the strongest large-cap performers in technology this year. This is exactly the kind of stock we want to include in our portfolio — one that is trending well and receiving positive earnings estimate revisions.
Notice how shares reside above upward-sloping 50-day (blue line) and 200-day (red line) moving averages, the hallmark of a healthy bull trend, with momentum building steadily throughout 2026.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, HPE has recently witnessed sharp upward revisions. As long as this trend remains intact (and HPE continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and a flawless record of recent earnings beats, it's not difficult to see why this transformation story has captured investor attention. Currently, HPE sports the highly coveted Zacks Rank #1 (Strong Buy).
With a record backlog, a $3.5 billion hyperscaler win in hand, and more Juniper synergies still to come, HPE remains one of the best stories in the market. Be sure to put it on your watchlist.
Tecnoglass manufactures and installs architectural glass, aluminum windows and vinyl windows for residential, multi-family and commercial construction across the Americas. Operating from a large vertically integrated complex in Barranquilla, Colombia, and serving primarily the U.S. market — with Florida historically its stronghold — the company was the first Colombian business to trade on a U.S. exchange and has since redomiciled to the United States.
For most of the past decade, Tecnoglass was a genuine growth story, compounding revenue at roughly 19% annually over five years while taking share from domestic window and glass suppliers. That top-line momentum has not stopped. What has changed, dramatically, is the company's ability to convert those sales into profit.
The squeeze is coming from several directions at once. Aluminum costs have risen sharply, tariffs are adding expense the company cannot yet fully offset, and a strengthening Colombian peso is inflating the cost base of a manufacturer that produces in pesos and sells in dollars. Management has said it does not expect to fully offset the tariff impact until 2027, which is a long time for shareholders to wait.
The structural wrinkle here is worth understanding. Tecnoglass's historic advantage was labor and manufacturing cost arbitrage — building in Colombia and selling into a high-priced U.S. market. Currency and tariffs attack that advantage directly, and neither is within management's control. The company's recent redomiciling to the United States and a shifting backlog mix beyond its Florida base are also reshaping the cost structure in ways that have yet to fully settle.
The Zacks Rundown
Tecnoglass has been a clear laggard, with shares down roughly 30% year to date and recently trading in the mid-$30s. A Zacks Rank #5 (Strong Sell), TGLS reflects sharply unfavorable earnings estimate revision trends, and the Zacks Consensus Estimate for the current year has been moving lower.
Shares are part of the Zacks Building Products – Miscellaneous industry group, which currently ranks in the bottom 35% out of approximately 250 Zacks Ranked Industries. Stocks in the bottom half of Zacks Ranked Industries face a persistent headwind, and while individual names can outperform a weak group, the industry association tends to cap the size and durability of any rally.
The Zacks Style Scores reinforce the concern. Tecnoglass carries a Growth Score of F, reflecting precisely the dynamic at the heart of this story: a business whose revenue keeps expanding while its earnings go the other way.
Cracks in the Foundation: Record Revenue, Collapsing Earnings
The second quarter, reported back in August, illustrates the problem perfectly. Tecnoglass delivered record revenue of $295.3 million, up 15.6% year over year and well ahead of expectations, alongside a record backlog of roughly $1.4 billion, also up 15.6%. On the surface, an excellent quarter.
Beneath it, profitability deteriorated sharply. Adjusted earnings came in at $0.54 per share against $1.03 in the year-ago quarter — a decline of nearly 48%. GAAP earnings of $0.55 fell 41.5%, net income dropped to $24.6 million, and gross margin compressed to 37.3%. Operating cash flow was just $4.4 million for the quarter, squeezed by tax payments, tariff-related outlays and aluminum pre-purchases. Management also paused share repurchases during the quarter to preserve working capital.
This was not an isolated quarter. Tecnoglass missed the Zacks Consensus Estimate by 9.9% in the third quarter of 2025 and by a steep 26.7% in the fourth, with earnings declining year over year in each.
The forward guidance offers little relief: the company narrowed full-year 2026 revenue guidance to $1.08-$1.12 billion with adjusted EBITDA of $220-$230 million, a midpoint that sits below where analysts had been modeling. More tellingly, management guided third-quarter revenue to roughly $280 million — a sequential decline — explaining that $15-$20 million of residential orders had been pulled forward ahead of May pricing actions. Borrowing from the next quarter to make the current one is rarely a sign of strength.
The estimate picture tells the same story from another angle. Analysts are modeling a year in which Tecnoglass grows sales by double digits but faces a sharp decline in profits. Estimates have continued to drift lower over the past several months. These are precisely the types of negative trends that the bears like to see.
Technical Outlook
TGLS stock has been carving out a well-defined downtrend. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping lower, with shares trading below them and drifting toward the lower end of their 52-week range.
The persistent decline has produced a classic "death cross," wherein the 50-day moving average crosses below the 200-day moving average — a bearish technical signal that often precedes further weakness. Shares would need to mount a serious, high-volume move to the upside and show improving earnings estimate revisions to warrant taking any long positions.
Final Thoughts
A cheap multiple on falling earnings is not the bargain it appears to be, and the estimate revision trend is what drives stock prices over the horizons we care about.
A deteriorating fundamental and technical backdrop show that this stock doesn't deserve a spot in most portfolios right now. With tariff offsets not expected until 2027, aluminum and currency pressures unresolved, and third-quarter revenue guided lower sequentially, this stock should be avoided.
Additional content:
Can McDonald's NEXT Strategy Lift Operating Margin Above +50%?
McDonald's Corp. is targeting an operating margin in the low-to-mid 50% range by 2030 through its newly outlined McDonald's > NEXT strategy. The initiative combines restaurant modernization, technology deployment and simplified operations with efforts to strengthen customer demand.
Restaurant efficiency is a key component of the plan. McDonald's targets approximately 250 basis points of gross restaurant-level efficiency gains as NEXT elements are fully deployed across the United States and International Operated Markets. Initiatives include modernizing restaurant design, simplifying operations and deploying its generative AI-enabled ArchIQ platform at scale. The company estimates that these efficiencies are equivalent to roughly $100,000 in annual cash flow benefits for the average U.S. restaurant, with the majority expected to benefit restaurant profitability over time.
Franchisee investment returns are central to the rollout, as approximately 95% of McDonald's restaurants worldwide are independently owned and operated. The company plans to provide NEXT partnering support through rent relief and capital support, totaling approximately $5 billion by 2030 and $8.5 billion by 2036. McDonald's estimates an approximately four-year payback for franchisees after accounting for this support. Implementation is expected to be tailored to market conditions, with investment priorities guided by franchisee capacity and expected returns.
The productivity program is paired with measurable demand objectives. McDonald's aims to gain 1.5 percentage points of market share in each of the chicken and beverage categories by 2030 while maintaining its beef market share leadership. Nearly 220 million 90-day active loyalty members across 70 markets provide a sizable foundation for more personalized engagement.
Overall, McDonald's NEXT strategy pairs restaurant productivity improvements with efforts to strengthen customer demand. Simpler operations and technology deployment target greater efficiency, while menu innovation, value leadership and improved hospitality are intended to support customer visits. Supported by its scale and franchisee partnering commitments, these initiatives could help McDonald's achieve its operating margin target and free cash flow conversion in the mid-to-high 80% range by 2030.
How MCD's Peers Are Tackling Costs and Margins
Starbucks Corporation is combining operational improvements under its Back to Starbucks strategy with a $2 billion gross cost savings plan through fiscal 2028. Savings span product and distribution costs, operating expenses and general and administrative expenses. In third-quarter fiscal 2026, SBUX's consolidated non-GAAP operating margin expanded approximately 430 basis points year over year to 14.4%, supported by sales leverage, cost savings, lower inflation and tariff refunds.
North America's operating margin improved more than 100 basis points even excluding tariff refunds, as sales leverage and cost savings helped offset investments in Green Apron Service and menu innovation. Starbucks expects its fiscal 2026 consolidated non-GAAP operating margin outlook to be above 11%.
Dutch Bros Inc. is improving service capacity through staffing aligned with customer demand, shop layout refinements and equipment optimization. In second-quarter 2026, company-operated shop contribution margin was approximately 31%, while labor costs as a percentage of company-operated shop revenues declined 120 basis points year over year to 25.4%, primarily due to sales leverage.
Dutch Bros expects approximately 90 basis points of adjusted selling, general and administrative expense leverage for full-year 2026, partially offsetting higher coffee and occupancy costs. BROS' revised full-year adjusted EBITDA guidance of $385 million to $390 million incorporates approximately 20 basis points of year-over-year adjusted EBITDA margin pressure at the midpoint.
MCD's Price Performance, Valuation & Estimates
Shares of McDonald's have declined 21.2% over the past year compared with the industry's fall of 12.4%.
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 5.77, above the industry's average of 2.93.
The Zacks Consensus Estimate for MCD's 2026 earnings per share (EPS) implies a year-over-year rise of 5.6%. The EPS estimates for 2026 have increased in the past 60 days.
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.
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