SBUX·Starbucks Corporation

Starbucks reversed its sales decline, reporting positive comparable sales after several quarters of downturns, driven by leadership changes and operational improvements such as better staffing and faster service. The rebound in morning traffic and restored same‑store sales suggest the company may sustain growth in the second half, which could support its guidance for the next 1–10 trading days. Fiscal Q3 North American same‑store sales guidance is projected to align with consensus, indicating modest growth and no upside surprises, so traders should watch the actual release for any deviation that could shift valuation. A federal judge dismissed a shareholder lawsuit alleging false sales statements, removing a potential liability that could have weighed on investor confidence, so monitoring future litigation or earnings guidance remains prudent. Wells Fargo and Morgan Stanley have both upgraded Starbucks to overweight and raised price targets to $120 and $111 respectively, reflecting confidence in store expansion and digital sales growth, so the next earnings call will be key to confirm these expectations. The company confirmed a quarterly cash dividend of $0.62 and announced a $400 million annual software cost reduction plan, which should improve cash flow, so watch the earnings release for execution of the savings program. Starbucks also introduced a new bonus program and weekly pay overhaul that could raise hourly wages by 5%–8%, potentially increasing labor costs, so traders should monitor margin performance in the upcoming results. The earnings conference call is scheduled for July 29 post‑market, with a replay available until September 11, so the market will be focused on the Q3 FY2026 results and any guidance revisions. In addition, Jim Cramer highlighted ongoing turnaround and potential catalysts such as new store openings and menu innovation, so keep an eye on any announcements of expansion plans or product launches that could influence short‑term sentiment.