It has been about a month since the last earnings report for Starbucks (SBUX) . Shares have added about 4.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Starbucks due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.Starbucks Q4 Earnings Miss Estimates, Revenues Increase ...

Core Insights - Starbucks reported mixed results for the fourth quarter of fiscal 2025, with earnings per share (EPS) missing estimates while net revenues exceeded expectations [1][4][5] Financial Performance - EPS for the quarter was 52 cents, missing the Zacks Consensus Estimate of 55 cents by 23.1% and down 35% from 80 cents in the prior-year quarter [4] - Net revenues reached $9.57 billion, surpassing the consensus mark of $9.33 billion by 2.6% and increasing 5.5% from $9.1 billion in the prior-year quarter [5] - Global comparable store sales rose by 1% year over year, supported by a 1% increase in comparable transactions [5] Operational Developments - The "Back to Starbucks" turnaround strategy is showing progress, with a return to global comparable sales growth and improving momentum [2] - Starbucks reported 107 net store closures in the fiscal fourth quarter, bringing the total store count to 40,990 [5] Segment Analysis - North America segment net revenues were $6.9 billion, up 3% year over year, but operating margin contracted 1420 basis points to 4.5% from 18.7% in the prior-year quarter [7] - International segment net revenues increased 9% year over year to $2.07 billion, with operating margin contracting 410 basis points to 10.8% due to promotional activities and store closures [8] Cost Pressures - Rising coffee bean prices are expected to impact performance in the upcoming quarters, with arabica coffee prices having increased by 20% this year following a 70% rise in 2024 [9] Stock Performance and Outlook - Following the earnings release, Starbucks shares initially dropped 1.7% but later rose 3.9% before closing down 1.21% on October 30 [3] - The average brokerage recommendation for Starbucks is 2.23, indicating a hold position, with 16 out of 37 recommendations classified as Strong Buy [10][11] Price Targets - The average price target for Starbucks, based on short-term forecasts from 31 analysts, is $94.74, suggesting a potential increase of 13.94% from the current stock price of $83.15 [12] Investment Opportunities - Several ETFs provide exposure to Starbucks, including Tremblant Global ETF (2.69%), Capital Group Dividend Value ETF (2.5%), and Consumer Discretionary Select Sector SPDR Fund (2.27%) [13][14]