Starbucks Stock Heads For Weekly Slide: Analyst Retains 'Buy' Call After Job Cuts, Store Closure Plans

Starbucks shares dropped 0.1% in early premarket trading on Friday, heading for a weekly drop. The previous day, Starbucks announced plans to close hundreds of underperforming cafes in the U.S. and Canada, aiming to save $1 billion in costs, the latest step in a year-long turnaround effort.

Investment research firm BTIG reiterated its 'Buy' rating on the company's shares and $105 price target. The store closures, which are expected to be completed over the next several days, appear to be roughly in line with investor expectations, representing approximately 4.5% of the company-owned North American portfolio, according to the analyst.

While noting the development as a positive, it believes that Starbucks' revival is taking longer than previously expected, and analysts are eagerly awaiting a return to positive transaction counts in the U.S. as the ultimate catalyst.

Currently, 17 of the 35 analysts covering the stock have a 'Buy' or higher rating, while 15 recommend 'Hold,' signaling a divide across Wall Street. Their average price target of $98.47 signals an over 17% upside from the stock's last close, according to Koyfin data.

Notably, Starbucks stock is down approximately 25% from its 2025 high, reached in late February, and 6.4% down year-to-date.

On Stocktwits, the retail sentiment for SBUX shifted to 'bullish' as of early Friday, from 'neutral' the previous day.

Meanwhile, Starbucks is inching closer to finalizing a stake sale in its China business, even as it advances with plans to modernize cafe interiors and menus.

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