• Wells Fargo analyst sets a new price target for Starbucks Corporation (NASDAQ:SBUX) at $110, indicating a potential 12.27% increase.
• Starbucks reports a 5.5% year-over-year revenue increase to $9.91 billion in Q1 fiscal 2026, despite missing earnings estimates.
• The company faces margin contraction due to rising costs but remains optimistic with its "Back to Starbucks" strategy for sustainable growth.

Starbucks Corporation (NASDAQ:SBUX) is a renowned global coffeehouse chain, celebrated for its premium coffee and exceptional customer experience. Operating thousands of stores worldwide, Starbucks offers a diverse range of beverages and food items, positioning itself as a formidable competitor against other major coffee chains like Dunkin' and McDonald's. Recently, Wells Fargo analyst Zachary Fadem has set a new price target for Starbucks at $110, suggesting a potential 12.27% increase from its current trading price of $97.98.

Starbucks recently unveiled its first-quarter fiscal 2026 results, which led to an 8% rise in its stock price during pre-market trading. Despite missing earnings estimates with an EPS of 56 cents, the company achieved a 5.5% year-over-year revenue increase, reaching $9.91 billion. This growth was supported by a 4% rise in global comparable sales, driven by more transactions and modest ticket gains.

However, Starbucks encountered challenges with margin contraction due to rising labor and coffee costs. Despite these hurdles, the company's management remains optimistic, highlighting the early success of its "Back to Starbucks" strategy. This initiative is aiding in boosting sales as more customers return and visit more frequently, which Starbucks believes will lead to sustainable growth.

Currently, Starbucks' stock is trading at approximately $97.92, reflecting a 2.29% increase or $2.20. The stock has fluctuated between a low of $97.27 and a high of $104.80 today. Over the past year, it has reached a high of $117.46 and a low of $75.50. Starbucks boasts a market capitalization of about $111.34 billion, with a trading volume of 14,911,631 shares on the NASDAQ exchange.