Seattle-based Starbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of coffee worldwide. Its stores offer coffee, tea, and various food products. With a market cap of $90.9 billion, Starbucks operates through North America, International, and Channel Development segments.

The coffee giant has lagged behind the broader market over the past year. SBUX stock has dropped 10.1% on a YTD basis and gained 10.1% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 4.7% drop in 2025 and 11.7% surge over the past year.

Narrowing the focus, Starbucks has performed slightly better than the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 11.6% decline on a YTD basis, while notably underperforming XLY’s 13.7% surge over the past year.

Starbucks’ stock prices plunged 5.7% in the trading session after the release of its disappointing Q1 results on Apr. 29. While the company remains confident in its turnaround and claims progress of its “Back to Starbucks” strategy, its comparable transactions in North America and comparable ticket size in China have continued to remain on a downward trajectory. Meanwhile, the company opened 213 new stores during the quarter, which contributed to its overall topline increasing by 2.3% year-over-year to $8.8 billion. The company’s adjusted EPS for the quarter tanked 39.7% compared to the year-ago quarter to $0.41 and missed the Street’s expectations by 16.3%, unsettling investor confidence.

For the current fiscal year 2025, ending in December, analysts expect SBUX to report a 12.4% year-over-year decline in adjusted EPS to $2.90. The company has a mixed earnings surprise history. While it has missed the Street’s bottom-line estimates once over the past four quarters, it has matched or surpassed the projections on three other occasions.

SBUX holds a consensus “Moderate Buy” rating overall. Of the 32 analysts covering the stock, opinions include 15 “Strong Buys,” two “Moderate Buys,” 12 “Holds,” one “Moderate Sell,” and two “Strong Sells.”

This configuration is slightly less bullish than a month ago, when 17 analysts gave “Strong Buy” recommendations.

On Apr. 30, Guggenheim analyst Gregory Francfort reiterated a “Neutral” rating on SBUX, while lowering the price target to $83.

SBUX’s mean price target of $98.30 implies a 19.9% premium to current price levels, while its street-high target of $118 suggests a 43.9% upside potential.