Is Starbucks Stock Underperforming the Dow?

Core Insights - Starbucks Corporation operates as a global roaster, marketer, and retailer of coffee, with a market cap of $98.6 billion, and segments including North America, International, and Channel Development [1][2] Financial Performance - Starbucks stock reached a three-year high of $117.46 on March 3 but is currently trading 26.2% below that peak [3] - Year-to-date, Starbucks stock has dropped nearly 5%, and over the past 52 weeks, it has declined 13.9%, while the Dow Jones has gained 11.5% in 2025 and 5.7% over the past year [4] - The company has been trading below its 200-day moving average since early April and below its 50-day moving average since late July, indicating a bearish trend [4] Sales and Strategy - Under the new CEO Brian Niccol's "Back to Starbucks" strategy, comparable sales have consistently declined for several quarters, with North America comps remaining flat year-over-year in Q4 2025, while international comps improved by 3% [5] - Overall topline revenue increased 5.5% year-over-year to $9.6 billion, surpassing expectations, but margins were squeezed due to lower average ticket sizes in international markets [6] - Adjusted EPS for the quarter fell 35% year-over-year to $0.52, missing consensus estimates by 5.5%, leading to a 1.2% drop in stock prices following the Q4 results release [6]