As Starbucks Cuts Jobs and Closes Stores, Should You Buy, Sell, or Hold SBUX Stock?

Core Insights - Starbucks is the world's largest coffeehouse chain, known for its specialty coffee, inviting ambiance, and strong brand loyalty, having transformed coffee drinking into a lifestyle under Howard Schultz [1] - The company operates over 38,000 stores in more than 80 countries, combining a consistent brand approach with local adaptation [2] Financial Performance - Starbucks reported mixed fiscal Q3 2025 results, with earnings per share (EPS) at $0.50, significantly below analyst expectations of $0.65, marking a 45% year-over-year decline [5] - Revenue reached $9.5 billion, exceeding analyst estimates of $9.29–$9.3 billion, reflecting a 3–4% annual increase driven by expansion in company-operated stores and strength in key markets outside the U.S. [5] - Global comparable sales dropped 2%, and operating margin contracted to 10.1% from 16.6% a year prior, impacted by higher labor costs and ongoing investments [6] - Net income for the quarter was $558.3 million, down from $1.05 billion last year [6] Market Performance - SBUX stock has declined 0.2% over the last five days, 3.4% for the month, 13% over six months, and 6.5% year-to-date, with a 52-week drop of roughly 13% [3] - In contrast, the S&P 500 gained around 12% year-to-date and nearly 15% over the past year, highlighting Starbucks' underperformance against its benchmark [4] Strategic Outlook - The company withheld specific full-year guidance but indicated caution for Q4 due to challenging consumer conditions [7] - Management is focused on operational upgrades and innovation, aiming to return to pre-pandemic operating margin levels in the medium term, with potential upside from digital initiatives and new product offerings [7]