Starbucks (NASDAQ:SBUX) has faced turbulent months, but analysts are becoming increasingly optimistic about the Starbucks stock forecast through 2025 and beyond. Despite a disappointing second-quarter earnings report, major firms like Bernstein and Evercore ISI remain bullish, citing the company’s long-term strategy and labor investments as potential catalysts for a recovery.

Why Starbucks Stock Has Struggled

Under CEO Laxman Narasimhan, who succeeded Howard Schultz, Starbucks has embarked on its “Back to Starbucks” plan — a $2 billion initiative to improve store operations, boost worker satisfaction, and modernize processes. But the recovery has been slower than hoped.

In fiscal Q2 2025, the company reported revenue of $8.76 billion, missing analysts’ expectations. Same-store sales fell 1% overall, with U.S. transactions down 4%. Net income dropped by over 50% to $384.2 million, and earnings per share (EPS) came in at just $0.34, well below the $0.48 forecast.

Despite these setbacks, Starbucks opted to shift focus from equipment upgrades to boosting labor resources — a decision that cut into margins but could pay off longer term in improved service and customer retention.

Analysts See Upside in Starbucks Stock Forecast

Investment research firm Bernstein recently reaffirmed an “Outperform” rating on Starbucks and raised its price target from $90 to $100. Bernstein projects Starbucks stock forecast to improve through 2026 as labor investments begin to bear fruit. The firm sees EPS rebounding by more than 20% in fiscal 2026, with EBIT margins potentially reaching 19% in North America.

Evercore ISI also raised its target price from $95 to $105, highlighting growing confidence in the company’s turnaround efforts. Both firms agree that while near-term challenges persist, Starbucks is laying the groundwork for a stronger future.

The consensus among 32 Wall Street analysts remains a “Moderate Buy.” As of now, Starbucks trades slightly above its average price target of $91.50, with the Street-High forecast suggesting a 14% upside to $108 per share.

Valuation and Dividend Outlook

Despite lagging performance, SBUX stock has rebounded 15% from recent lows and is up 24% over the past 12 months. Investors are paying a premium for the brand’s potential: Starbucks trades at 38x forward earnings and 2.9x sales — higher than the industry average.

For income-seeking investors, Starbucks remains attractive. The company offers a 2.55% dividend yield, backed by an annualized forward dividend of $2.40 per share. Starbucks has raised its dividend for 14 consecutive years, with the most recent $0.61 payout issued on May 30.

What’s Next for Starbucks?

Looking ahead, analysts expect third-quarter EPS to fall 31% year-over-year to $0.64, with full-year 2025 EPS down 25% to $2.48. However, fiscal 2026 could mark a turning point. EPS is projected to grow to $2.99, signaling that the worst may be behind the company.

While recovery won’t be immediate, the Starbucks stock forecast reflects cautious optimism. Consumer behavior may be shifting, but Starbucks’ strategic pivot toward labor investment and efficiency could ultimately stabilize its growth trajectory.

Final Thoughts

Starbucks still has work to do to win back investors and consumers. The company is navigating a tricky macroeconomic environment and changing customer habits. But Wall Street believes the brand’s legacy, strong dividend, and operational overhaul will eventually restore investor confidence.

If Starbucks delivers on its long-term goals, hitting the $108 price target may not be a matter of “if,” but “when.”

For investors willing to weather short-term volatility, Starbucks offers a compelling blend of brand strength, dividend consistency, and turnaround potential — a recipe that could brew long-term gains as its strategy matures heading into 2026 and beyond.

The next few quarters will be key in assessing execution. Stronger U.S. traffic, improved margins, and consistent earnings beats could reignite investor enthusiasm and push the stock higher. If Starbucks can align its operational improvements with consumer demand trends, it may not only recover lost ground but also unlock fresh upside — potentially surpassing even bullish forecasts.

Featured Image: Unsplash @ June Andrei George

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