Citi Sees Continued Uncertainty around Starbucks (SBUX) Recovery, Cuts Target

Core Insights - Starbucks Corporation (NASDAQ:SBUX) is recognized as one of the 13 Best NASDAQ Dividend Stocks to buy currently [1] - Citi analyst Jon Tower has lowered the price target for Starbucks from $94 to $92, maintaining a Neutral rating due to lingering uncertainties following the company's recent earnings report [2][8] Financial Performance - In fiscal Q1 2026, Starbucks reported a global revenue increase of 5% year-over-year, reaching $9.9 billion, with comparable store sales up by 4% [3] - Operating margin was recorded at 10.1%, and earnings per share (EPS) reached $0.56 [4] - North America revenue grew by 3% to $7.3 billion, while international markets saw a 10% revenue increase to $2.1 billion, indicating varied growth across regions [4] Strategic Initiatives - The company is focused on stabilizing and growing revenue as part of its "Back to Starbucks" plan, with expectations for earnings improvement to follow [3] - Starbucks is investing in technology, appointing Anand Varadarajan as Chief Technology Officer to enhance its technology platforms and operational efficiency [5] - The company is reviewing its menu and operations to ensure product availability while minimizing waste, as part of a broader efficiency improvement effort [4]