Starbucks Shares Are Up 13.7% Year-to-Date: Is It a Buy?

Core Viewpoint - Starbucks has experienced a 13.7% increase in share price in 2026, attributed to a favorable reaction to its Q4 2025 earnings report, which highlighted growth in same-store sales, a 5% increase in global revenue, and the opening of 128 new coffeehouses globally [1] Group 1: Financial Performance - The company reported a net income of $293.3 million for the most recent quarter, representing a 75% decrease from its net income at the stock's all-time high [5] - In contrast, during Q3 2021, Starbucks reported a two-year U.S. revenue growth of 16% since Q3 2019, with same-store sales growth of 10% and over a million new active Starbucks Rewards members, totaling 24 million [4] - The company's previous all-time high share price was $126 in July 2021, from which it has since declined by approximately 24% [3] Group 2: Strategic Changes - Starbucks has entered a joint venture in China with Boyu Capital, selling a 60% interest in its retail operations for $4 billion, which has raised concerns about the valuation of its 8,000-store presence in China, estimated at $6.7 billion [6] - The shift in strategy regarding the Chinese market, which was previously seen as a significant growth opportunity, has led to skepticism about the company's future prospects in that region [6]