Starbucks' Turnaround Isn't As Simple As It Looks, Analyst Warns

Benzinga

Starbucks shares dipped after TD Cowen reiterated a Hold rating and warned that labor costs, margin pressure, and 2026–2027 earnings challenges make the company’s reset uneven. The analyst sees EPS coming in about 5% below consensus due to rising North America operating expenses. Starbucks traded lower at $85.14 on Monday.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Starbucks shares slipped after T.D. Cowan analyst Andrew M.

00:06Charles maintained a hold rating and an $84 price target,

00:10noting that the company's reset remains uneven even as sentiment has improved.

00:15He finds that labor, margin dynamics, and 2026 earnings pressures

00:19complicate the street's outlook and cast doubt on the strength of Starbucks' recovery.

00:24Charles takes a cautious view, citing uneven progress and higher North America operating

00:29expenses that drive his 2026 to 2027 EPS forecasts about 5% below consensus.

00:36Starbucks traded at $85.14, down 2.26% on Monday, according to Benzinga Prodata.

00:43For all things money, visit Benzinga.com.

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