Starbucks Investor Day Fails To Perk Up Stock — But Retail Traders Turn Extremely Bullish

CEO Brian Niccol’s “Back to Starbucks” plan, centered on faster service and reviving cafe culture, didn’t stop the stock from logging a fourth straight day of losses.

• As part of the investor day, the company unveiled newer entries to its menu, including new espresso, matcha and chai beverages, including Ube launching this spring.
• Starbucks said on Thursday there would be up to 5,000 new coffeehouse opportunities across the U.S. alone.
• In fiscal 2028, the company expects to deliver consolidated net revenue growth of 5% or more and comparable-store sales growth of 3% or more in the U.S. and globally.

Shares of Starbucks Corp. marked a fourth straight session of losses on Thursday after the coffee giant’s highly anticipated investor day failed to reignite bullish sentiment. Wall Street had hoped the event would bolster confidence in the stock, but those expectations fell flat despite CEO Brian Niccol outlining plans focused on menu innovation and expansion.

On Thursday, Niccol elaborated on his “Back to Starbucks” transformation plan, which aims to restore Starbucks’ coffeehouse culture and reduce wait times at its stores.

New Menu Offerings

As part of its investor day, Starbucks unveiled a slate of new menu items, including expanded espresso, matcha, and chai offerings, and teased the launch of an ube flavor (derived from purple yam) later this spring. The coffee giant also said it plans to roll out a premium, customizable chai and broaden its popular Refreshers platform with the introduction of Energy Refreshers.

Starbucks is also building on its 2025 launch of protein-based drinks to attract Gen-Z consumers who have become more health-focused. The company introduced a new lineup of Protein Lattes and Cold Foam Drinks in Starbucks coffeehouses across the U.S. and Canada. 

International Expansion

Starbucks said on Thursday there would be up to 5,000 new coffeehouse opportunities across the U.S. alone, and, as average unit volumes grow, that number could double over time beyond fiscal 2028.

The coffee giant aims to double its international coffeehouse footprint over time, reaching approximately 40,000 locations outside the U.S., driven by adding 15,000-20,000 new coffeehouses in China.

2028 Fiscal Outlook

In fiscal 2028, the company expects to deliver 5% or more consolidated net revenue growth and 3% or more growth in global and U.S. comparable store sales. The company said it expects adjusted earnings per share to come in between $3.35 and $4.00.

Starbucks said it aims to open over 2,000 net new stores across its global company-operated and licensed portfolio, including nearly 400 net new U.S. company-operated stores.

Wall Street View

TD Cowen analyst Andrew Charles raised the firm's price target on Starbucks to $89 from $84, which implies a 5% downside from the last close, and maintained a ‘Hold’ rating, according to The Fly. The firm said that with better visibility into 2028 earnings per share guidance and shares trading at a peak 32-times forward earnings multiple, Starbucks looks like a momentum story.

Charles noted that if the first quarter’s 4% North America same-store sales accelerate, driven by multiple shared drivers, the firm expects multiple expansions to follow.

What Is Retail Thinking?

Retail sentiment on Starbucks improved to ‘extremely bullish’ from ‘bullish’ a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits. In the last seven days, retail message volumes on Stocktwits for the stock soared 263%.

“$SBUX $104 to $92 in 36 hours after the best earnings in years. I don't understand this market anymore,” said one bullish retail watcher. 

“It's currently trading at $95.15. Brian Niccol has the right plan for long-term growth, and it's going to reward loyal shareholders handsomely,” posted another, adding that they expect the stock to surge more than 27% to $120.

Shares of Starbucks have declined 13% in the last 12 months.

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