Jefferies cuts Starbucks FY25, FY26 EPS estimates to ‘new Street-lows’

After Starbucks (SBUX) pre-announced fiscal Q4 results that were worse than expected, Jefferies says “investor expectations for F4Q were already moot,” but adds that suspended FY25 guidance doesn’t add any near-term clarity to what the firm sees as “a tough road ahead” in reaccelerating same-store sales and traffic worldwide, among other headwinds. The firm, which notes it lowered its F25 and FY26 EPS estimates to “new Street-lows,” reiterates an Underperform rating and $76 price target on Starbucks shares.