Starbucks Seen Sustaining Sales Momentum, UBS Says

MT Newswires Live10-31 02:50

Starbucks' (SBUX) continued sales momentum and margin improvement support its fiscal 2027 outlook, though the shares already reflect a solid multiyear recovery, UBS said in a note Friday.

The brokerage said the company's "Back to Starbucks" strategy supported strong comparable sales growth, driven by transactions, ticket growth, menu innovation and operational improvements.

UBS expects North America comparable sales growth to remain on track with the company's fiscal 2027 target, while positive transaction growth will be a key focus as some tailwinds ease.

UBS said Starbucks' fiscal 2027 guidance appears achievable, with sales momentum and cost savings supporting margin improvement.

UBS maintained the company's neutral rating, with a $105 price target.

Price: 103.94, Change: -1.57, Percent Change: -1.49

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