Starbucks' Turnaround Expected to Support Q4 Sales, UBS Says

11:47 AM EDT, 10/20/2026 (MT Newswires) -- Starbucks (SBUX) is expected to report strong fiscal Q4 sales, supported by progress on its "Back to Starbucks" turnaround plan, menu innovation, improved service and marketing initiatives, UBS said in a Monday note. Investors are expecting US comparable-store sales growth of about 7.5%, compared with a consensus of 6.7%, UBS said. UBS analysts are expecting adjusted earnings of $0.76 per share, above the consensus of $0.71. Investor focus is likely to shift to fiscal 2027 guidance and the sustainability of US transaction growth as comparisons tighten and tailwinds fade, the analysts said. Market expectations for fiscal 2027 are for same-store sales growth of 3% to 4% and earnings of around $3.16 per share, UBS said, adding that it is modeling fiscal 2027 North American same-store sales growth of 4.6%. The bank expects margin expansion from cost savings and operational improvements, while store closures and delivery may provide less sales support. Starbucks' turnaround includes coffeehouse upgrades, service improvements and $2 billion in targeted savings through fiscal 2028. UBS maintained its neutral rating on the stock with a price target of $105. Starbucks shares were up 1.9% in Tuesday trading. Price: 100.10, Change: +2.23, Percent Change: +2.28