Starbucks (SBUX) stock closed meaningfully higher on April 29 after the coffee specialist delivered a decisive earnings beat that validated CEO Brian Niccol’s turnaround strategy.
As investors cheered a 9% increase in revenue to $9.53 billion on $0.50 in earnings per share (EPS), SBUX broke above its 20-day moving average (MA), indicating continued momentum ahead.
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Versus their recent low, Starbucks shares are now up more than 20%.
www.barchart.comShould You Buy Starbucks Stock Into Post-Earnings Strength?
The breadth of recovery is what distinguishes this quarter from a one-time blip.
Starbucks saw customer traffic increase across all income cohorts and age groups, with Gen Z and millennial brand affinity reaching five-year highs.
The Starbucks Rewards program hit 35.6 million 90-day active members — up 4% year-over-year — as redesigned tiered structure drove habitual engagement rather than discount-seeking behavior.
Additionally, delivery grew over 30%, morning traffic returned to fiscal 2022 levels, and all 10 of Starbucks’ largest international markets delivered positive comps for the first time in nine quarters.
Together, these concrete improvements indicate a durable, multi-lever turnaround that may expand the multiple on SBUX shares.
Jim Cramer Reiterates Bullish View on SBUX Shares
As Starbucks raised its full-year outlook to 5% increase in U.S. comparable sales and at least $2.25 a share of earnings, famed investor Jim Cramer raised his price target on the stock to $115.
In an update to members of his Investing Club, Cramer said the "Siren Craft” system has drastically reduced wait times and improved store efficiency under CEO Brian Niccol.
Consequently, SBUX’s adjusted operating margin improved by 180 bps to 8.7% in fiscal Q2.
According to the “Mad Money” host, Niccol is successfully stabilizing the U.S. business faster than many analysts had modeled, justifying a higher valuation multiple for Starbucks stock.
A healthy 2.35% dividend yield makes Starbucks even more attractive as a long-term holding.
How Wall Street Recommends Playing Starbucks
Wall Street also agrees with Cramer’s constructive view on SBUX stock for the remainder of 2026.
According to Barchart, the consensus rating on Starbucks is “Moderate Buy."
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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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