Starbucks Corp (NASDAQ:SBUX) stock rose Thursday following the coffee giant’s announcement of a reimagined loyalty program and mixed fiscal first-quarter earnings results reported on Wednesday. The stock has reversed earlier gains and is now trading lower.
Rewards Program
Starbucks unveiled a new three-tiered loyalty structure for its 35.5 million active U.S. members, set to launch Mar. 10. The updated Starbucks Rewards program introduces Green, Gold, and Reserve membership levels, each offering escalating benefits based on Stars earned.
“We’re redefining the industry with customer-focused benefits that set a new standard and ignite fandom,” said Tressie Lieberman, Starbucks global chief brand officer.
The program features accelerated Star-earning rates and a new 60-Star redemption tier offering $2 off any purchase. Gold and Reserve members will receive Stars that never expire, while Green members can extend Star validity through monthly activity.
Earnings Snapshot
For the fiscal first quarter 2026, Starbucks reported adjusted earnings of 56 cents per share on revenues of $9.92 billion. Wall Street had projected 59 cents per share on revenue of $9.63 billion.
The company posted 4% comparable store sales growth globally, with North America up 4% and China rising 7%. Starbucks reported U.S. comparable transaction growth for the first time in eight quarters, breaking a two-year slump.
“Our Q1 results demonstrate our ‘Back to Starbucks’ strategy is working and we believe we’re ahead of schedule,” commented Brian Niccol, chairman and chief executive officer.
Starbucks expects global and U.S. comparable store sales growth of 3% or greater for fiscal 2026, with adjusted EPS in the range of $2.15 to $2.40 (versus consensus of $2.35). The company projects opening 600 to 650 new coffeehouses globally.
On Thursday, RBC Capital Markets analyst Logan Reich reiterated an Outperform rating on Starbucks and maintained a $105 price target.
The reaffirmation comes as Starbucks laid out fresh long-term financial targets at its Investor Day, outlining a multi-year plan focused on store productivity, cost efficiency, and international profitability.
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $99.78. Recent analyst moves include:
- Wells Fargo: Overweight (Raises Target to $110.00) (Jan. 29)
- BTIG: Buy (Maintains Target to $105.00) (Jan. 29)
- Wells Fargo: Overweight (Raises Target to $105.00) (Jan. 27)
Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and 41% expected earnings growth suggest analysts view this growth as justification for the 5% upside to analyst targets.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Starbucks, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 18.64) — Trading at a steep premium relative to peers.
- Momentum: Weak (Score: 20.44) — Stock is underperforming the broader market.
SBUX Price Action: Starbucks shares were down 0.54% at $94.64 at the time of publication on Thursday, according to Benzinga Pro data.
Image by Harun Ozmen via Shutterstock
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