Starbucks Corporation (NASDAQ:SBUX) is at a critical juncture as it executes an ambitious turnaround strategy through fiscal 2028.
The "Back to Starbucks" initiative shows early traction. U.S. and international comparable sales beat expectations in Q1 FY2026.
Improved financial transparency and clear guidance support investor confidence. EPS target for 2028 is $3.35-$4.00, implying 27% CAGR.
Franchising China operations reduces risk. A $2 billion cost savings program and digital transformation are key drivers.
Competition intensifies, with chains like Dutch Bros gaining share. The stock trades at a premium P/E of 79.58.
Bullish analysts see upside to $150; bearish scenarios point to $78. Low institutional ownership leaves room for upward momentum.
