Is Starbucks Stock Underperforming the S&P 500?

Is Starbucks Stock Underperforming the S&P 500?

Thu, September 3, 2026 at 6:36 PM GMT+3 3 min read

• SBUX -1.28%
• ^GSPC -0.38%

Seattle, Washington-based Starbucks Corporation (SBUX) roasts, sells and distributes high-quality coffee globally. Valued at $121 billion by market cap, the company offers packaged and single-serve coffees and teas, beverage-related ingredients, and ready-to-drink beverages, as well as produces and sells bottled coffee drinks and a line of ice creams through over 40,000 stores worldwide under the brands Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, and Starbucks Reserve.

Companies worth $10 billion or more are generally described as "large-cap stocks," and SBUX definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the restaurants industry. With over 41,000 stores globally, SBUX's strong brand drives growth and its diverse footprint and international presence fuel market dominance.

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Despite its notable strength, SBUX slipped 3.4% from its 52-week high of $110.51, achieved on Aug. 13. Over the past three months, SBUX stock gained 11.7%, outperforming S&P 500 Index's ($SPX) marginal gains during the same time frame.

Shares of SBUX rose 26.7% on a YTD basis, outperforming SPX's YTD gains of 12%. However, the stock climbed 18.9% over the past 52 weeks, underperforming SPX's 19.5% returns over the last year.

To confirm the bullish trend, SBUX has been trading above its 200-day moving average since early January, with slight fluctuations. The stock has been trading above its 50-day moving average since early April, with some fluctuations.

Starbucks' underperformance stemmed from declining U.S. same-store sales and reduced customer foot traffic as inflation led price-sensitive consumers to cut back on discretionary spending. High coffee commodity prices, rising labor costs, and supply-chain pressures further squeezed profit margins. To address these structural issues, CEO Brian Niccol launched a costly, ongoing turnaround strategy which included closing hundreds of underperforming stores, laying off corporate staff, restructuring operations in China, and heavily investing in store labor and technology ultimately weighing down near-term earnings despite recent sales improvements.

In the competitive arena of restaurants, Luckin Coffee Inc. (LKNCY) has lagged behind SBUX, with an 8.4% uptick on a YTD basis and marginal gains over the past 52 weeks.

Wall Street analysts are reasonably bullish on SBUX's prospects. The stock has a consensus "Moderate Buy" rating from the 35 analysts covering it, and the mean price target of $111.21 suggests a potential upside of 4.2% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com