William Blair Has Bearish Forecast for Starbucks Q2 Earnings

Starbucks Co. (NASDAQ:SBUX) – Stock analysts at William Blair cut their Q2 2025 EPS estimates for shares of Starbucks in a research note issued to investors on Wednesday, January 29th. William Blair analyst S. Zackfia now anticipates that the coffee company will earn $0.51 per share for the quarter, down from their prior estimate of $0.61. The consensus estimate for Starbucks’ current full-year earnings is $3.08 per share. William Blair also issued estimates for Starbucks’ Q3 2025 earnings at $0.83 EPS, Q4 2025 earnings at $0.88 EPS, FY2025 earnings at $2.91 EPS and FY2026 earnings at $3.29 EPS.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings results on Tuesday, January 28th. The coffee company reported $0.69 EPS for the quarter, beating analysts’ consensus estimates of $0.68 by $0.01. Starbucks had a net margin of 10.40% and a negative return on equity of 46.39%. During the same quarter in the previous year, the company earned $0.90 EPS.

Other equities analysts have also recently issued reports about the company. Barclays increased their price target on Starbucks from $119.00 to $124.00 and gave the stock an “overweight” rating in a report on Wednesday. Redburn Atlantic reissued a “sell” rating and set a $77.00 target price (down from $84.00) on shares of Starbucks in a research note on Wednesday, November 13th. Stifel Nicolaus lifted their price target on shares of Starbucks from $110.00 to $114.00 and gave the company a “buy” rating in a research note on Monday. Morgan Stanley increased their price objective on shares of Starbucks from $98.00 to $115.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 16th. Finally, BMO Capital Markets boosted their target price on Starbucks from $110.00 to $115.00 and gave the company an “outperform” rating in a research report on Wednesday. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $105.52.

Starbucks Price Performance

Shares of Starbucks stock opened at $108.58 on Thursday. The firm has a market cap of $123.11 billion, a price-to-earnings ratio of 32.80, a PEG ratio of 2.91 and a beta of 0.99. The stock’s 50-day moving average is $95.70 and its 200 day moving average is $92.89. Starbucks has a one year low of $71.55 and a one year high of $110.08.

Institutional Investors Weigh In On Starbucks

Large investors have recently modified their holdings of the stock. Strategic Investment Solutions Inc. IL bought a new position in Starbucks during the second quarter valued at $25,000. Financial Life Planners purchased a new position in shares of Starbucks during the 4th quarter valued at $25,000. Collier Financial bought a new position in shares of Starbucks during the 4th quarter worth $27,000. DT Investment Partners LLC increased its holdings in Starbucks by 39.4% in the 3rd quarter. DT Investment Partners LLC now owns 428 shares of the coffee company’s stock worth $42,000 after acquiring an additional 121 shares during the last quarter. Finally, FSA Wealth Management LLC bought a new stake in Starbucks in the 3rd quarter valued at about $49,000. Hedge funds and other institutional investors own 72.29% of the company’s stock.

Insider Buying and Selling

In other Starbucks news, CFO Rachel Ruggeri sold 1,491 shares of Starbucks stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $99.54, for a total value of $148,414.14. Following the sale, the chief financial officer now owns 80,124 shares of the company’s stock, valued at approximately $7,975,542.96. The trade was a 1.83 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 1.98% of the stock is currently owned by corporate insiders.

Starbucks Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 28th. Investors of record on Friday, February 14th will be given a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a dividend yield of 2.25%. The ex-dividend date is Friday, February 14th. Starbucks’s payout ratio is 73.72%.

Starbucks Company Profile

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.