Starbucks Stock Rallies 2.15% to Monthly High on 'Back to Starbucks' Strategy, Upcoming Investor Day

The share price rose to its highest level so far this month today, with an intraday gain of 2.15%.

Starbucks’ stock rally follows a mix of strategic progress and forward-looking optimism. The company is set to report Q1 fiscal 2025 earnings, where analysts anticipate revenue growth of 2.5% year-over-year to $9.63 billion, though earnings per share are expected to decline to $0.57. Under CEO Brian Niccol, the firm is prioritizing barista training and store operations to revive the customer experience, aligning with its “Back to Starbucks” strategy. A critical milestone comes on January 29, when the company will host an investor day to outline fiscal 2026 guidance and long-term targets, potentially acting as a catalyst for renewed investor confidence.

Investor sentiment remains divided. Bulls highlight recent U.S. same-store sales growth, projected at 3%–4% for Q1, outpacing the 1.9% consensus, as evidence of the brand’s resilience. However, bears question whether the stock’s current valuation justifies its long-term earnings potential, particularly as reinvestments in customer experience and operations may pressure short-term profitability. The upcoming earnings report and investor day will be pivotal in determining whether Starbucks can balance growth initiatives with profitability, addressing concerns about its ability to restore margins while maintaining market share in a competitive landscape.