Starbucks Stock Has Soared in 2026. Is It Too Late to Buy?

Core Insights - Starbucks has seen a year-to-date stock increase of approximately 14%, indicating a potential turnaround after facing challenges with traffic and cost pressures [1] - The question arises whether it is still a good time for investors to buy into Starbucks shares, especially after the company's comparable store sales turned positive in fiscal Q4 [2] Financial Performance - In fiscal Q4 2025, Starbucks reported a revenue increase of 5% year over year, reaching $9.6 billion, which is an acceleration from the 4% growth in fiscal Q3 2025 [3] - North America comparable-store sales were flat in fiscal Q4 2025, improving from a 2% decline in fiscal Q3, although there was a 1% decline in comparable transactions [4] - The international segment performed better, with comparable store sales rising 3% year over year, supported by a 6% increase in comparable transactions, despite a 3% decline in average ticket size [5][6] Profitability Challenges - Despite improving sales trends, Starbucks reported a non-GAAP earnings per share of $0.52 in fiscal Q4 2025, a 35% decline year over year, and a non-GAAP operating margin of 9.4%, down 500 basis points from the previous year [7][8] - The current valuation at around 40 times forward earnings suggests that a successful turnaround may already be reflected in the stock price [8]