Starbucks Stock in Freefall After Earnings Come Up Short
Starbucks stock plunged out of the gate Wednesday after the coffee chain reported earnings. Here's what you need to know.


Starbucks (SBUX) stock plunged more than 15% at the start of Wednesday's trading session after the coffee retailer came up short of top- and bottom-line expectations for its fiscal second quarter and lowered its full-year outlook.
In the three months ended March 31, Starbucks said its revenue decreased 2% from the year-ago period to $8.6 billion. Earnings per share (EPS) were down 14% to 68 cents, while global comparable-store sales fell 4% from its fiscal Q2 2023.
"In a highly challenged environment, this quarter's results do not reflect the power of our brand, our capabilities or the opportunities ahead," Starbucks CEO Laxman Narasimhan said in a statement. "It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The quarterly results fell woefully short of analysts' expectations. According to CNBC, Wall Street was calling for revenue of $9.1 billion, earnings of 79 cents per share and global comparable-store sales growth of 1%.
As a result of the disappointing first half of the year, Starbucks lowered its full-year outlook, with Narasimhan citing "a more cautious consumer" as one of the reasons for the downwardly revised forecast.
On the company's conference call, Starbucks Chief Financial Officer Rachel Ruggeri said fiscal 2024 revenue growth is now expected to be in the low single digits from its previous range of 7% to 10%, and EPS growth in the range of flat to low single digits from its previous range of 15% to 20%.
"While it was a difficult quarter, we learned from our own underperformance and sharpened our focus with a comprehensive roadmap of well thought out actions making the path forward clear," Ruggeri said. "On this path, we remain committed to our disciplined approach to capital allocation as we navigate this complex and dynamic environment."
Where does Starbucks stock stand with analysts?
Starbucks was already struggling on the charts ahead of its fiscal Q2 results. Shares were down nearly 8% for the year-to-date through the April 30 close vs a roughly 6% gain for the broader S&P 500.
And Jefferies analyst Andy Barish sees an "uphill battle ahead" for Starbucks. The "question facing the company and investors is whether these challenges are more transitory or longer-term issues, i.e. brand, relevance, and competitiveness, especially in China," Barish says. The analyst has a Hold rating on SBUX and lowered his price target to $84 from $91 after the company's appearance on the earnings calendar.
Still, most of Wall Street remains upbeat on the consumer discretionary stock. According to S&P Global Market Intelligence, the consensus analyst target price for SBUX stock is $94.47, representing implied upside of more than 27% to current levels. Additionally, the consensus recommendation is Buy.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Investing Abroad Could Pay Off — Here's How
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Retire in Belize for Stunning Natural Beauty and Culture
Belize offers miles of protected land and ocean, a rich mix of cultures and a chill lifestyle. Best yet — the income requirement is just $2K per month.
-
Why Investing Abroad Could Pay Off
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Are These the Next Stocks to Split?
Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade Talks
Despite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around You
While thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.