Evercore ISI reaffirmed an Outperform rating and left its price target at $105.00 for Starbucks (NASDAQ:SBUX) after the company reported first-quarter results. The shares were trading around $98.54, close to what InvestingPro lists as fair value, and the company is trading at a price-to-earnings multiple of 61.8.
Earnings and margins
Starbucks reported first-quarter earnings per share of $0.56, an 18% decline from the prior-year period. That result topped Evercore’s internal estimate of $0.51 but was slightly below the consensus expectation of $0.58. In other reporting within the quarter, the company’s EPS was also described as missing analysts’ expectations of $0.59, a 5.08% shortfall. Consolidated operating margin for the quarter stood at 10.1%, down 180 basis points year-over-year.
On a trailing-12-month basis, diluted EPS was $1.63. Street estimates included in the reporting showed analysts projecting EPS of $2.33 for fiscal 2026.
Sales performance in the Americas
Americas same-store sales increased 4%, outpacing both Evercore’s and consensus views of 2%. Management attributed that growth to a 3% increase in transactions and a 1% increase in average ticket. The company also noted that both rewards and non-rewards member activity rose for the first time in eight quarters, supporting the uplift in transactions.
InvestingPro-sourced figures cited in the coverage put Starbucks’ overall revenue growth at 2.79% over the last twelve months, and the company’s market capitalization at $112.89 billion.
International strength and China recovery
International operations outperformed expectations, with same-store sales up 5% versus an estimated 2.5%. China was highlighted for stronger momentum, posting 7% same-store sales growth driven by a 5% increase in transactions and a 2% ticket improvement. The international gains contributed to reported total revenue of $37.18 billion on a trailing-12-month basis.
Pilot programs, licensing and M&A
Starbucks said its "Green Apron" pilot stores are outpacing the broader system on same-store sales by two percentage points, with that advantage attributed entirely to higher transaction volumes. The company also expects a pending transaction with Boyu to close this spring - once completed, the deal will convert roughly 8,000 company-operated locations into licensed stores within the International segment.
Dividend and industry placement
Operating as a significant participant in the Hotels, Restaurants & Leisure industry, Starbucks has maintained dividend payments for 17 consecutive years and currently yields 2.59%.
Market reaction and revenue results
Alongside the EPS figures, Starbucks reported quarterly revenue of $9.9 billion, which exceeded an anticipated $9.62 billion. The revenue beat appeared to influence investor sentiment, with the stock rising roughly 8% in pre-market trading as reported.
Analyst stance and valuation considerations
Evercore’s continued Outperform rating and $105 price target follow the mixed results: an EPS decline and margin compression on one hand, and stronger-than-expected same-store sales, international recovery and a revenue beat on the other. The company’s elevated P/E ratio of 61.8 and proximity of the share price to InvestingPro Fair Value were noted in the coverage alongside carry-through metrics such as trailing EPS and fiscal 2026 forecasts.
The quarter presents a combination of operational strengths in sales and expansion initiatives and challenges in profitability metrics, leaving investors and analysts to weigh revenue momentum and international gains against a compressed operating margin and a high valuation multiple.