Starbucks(US:SBUX) Benzinga·2026-01-27 12:32Core Viewpoint - Starbucks Corp. is preparing to report its first-quarter fiscal 2026 earnings on January 28, with CEO Brian Niccol's "Back to Starbucks" strategy facing scrutiny due to rising operational costs that may lead to a stock correction [1] Earnings Expectations - Wall Street anticipates Starbucks to report earnings per share (EPS) of $0.58, a decrease from $0.69 in the same quarter last year, despite a projected revenue increase to $9.64 billion [2] - Jefferies analyst Andy Barish has reiterated an "Underperform" rating with a price target of $75, describing the stock's recent performance as an "unsupported rally" [2] Operational Challenges - The "Green Apron Service" standard, implemented in August 2025, aims to enhance customer service through increased staffing and better order sequencing, but its impact will be felt in the first quarter [3] - Jefferies highlights that the costs associated with labor reinvestment and the rollout of Assistant Store Managers will challenge margins in the first half of the year [4] Revenue Strategy - CFO Cathy Smith has indicated that the company plans to prioritize revenue growth over immediate earnings, acknowledging that investments will pressure near-term profits [5] - The company is counting on strong holiday sales, particularly from returning seasonal items like the Eggnog Latte, to meet revenue targets [5] Analyst Sentiment - Bank of America maintains a "Buy" rating with a raised price target of $114, citing long-term growth potential in China despite current economic challenges [6][8] - Mizuho advises a neutral stance, suggesting investors wait for clearer long-term financial targets expected at the upcoming Investor Day [10] Stock Performance - Starbucks shares have increased by 12.57% over the last month and 14.72% year-to-date in 2026, although they are down 3.69% over the past year [11]