Should You Buy Starbucks Stock Before Oct. 29? Here's What CEO Brian Niccol Might Have in Store for Investors

Source The Motley Fool

Key Points

  • Starbucks' comparable sales continue to decline, although new stores are driving higher total sales.

  • CEO Brian Niccol has been on the job for a year now, and he's working on getting the company to stabilize before it can get back to growth.

  • Management declined to give fourth-quarter guidance, but it said it felt "conservative" about the quarter.

  • These 10 stocks could mint the next wave of millionaires ›

Once the king of coffee, Starbucks (NASDAQ: SBUX) has been struggling to find its footing in a changing landscape. Sales have been heading lower for too long, and competition everywhere is creating challenges for a rebound.

It's been just over a year since superstar CEO Brian Niccol took over, and investors will get an update on how things are going when Starbucks reports fiscal fourth-quarter earnings on Oct. 29. Let's take a look at what's been going on, what investors could expect, and whether to buy the stock now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Starbucks storefront.

Image source: Starbucks.

Going back to its roots

Starbucks has been mired in problems ranging from too-long lines to outdated equipment and old-style cafes. It's the classic example of a company getting too big to handle and in danger of becoming a dinosaur. It now operates more than 41,000 stores worldwide, and that's not an easy boat to steer.

It's gone through four different CEOs over the past five years, and when Niccol joined last year, he laid out a plan to return the company to its roots as a gathering place for customers to enjoy coffee. He said the process felt "transactional," product has been inconsistent, and the wait is too long. Prior to his joining, the company had become too promotional, which marred what was supposed to be an elevated Starbucks experience.

Some changes he's made since then are bringing back the condiments bar, which made it quicker for baristas to hand off beverages, and new technology to streamline the ordering process.

This is still a work in progress, but there have already been some positive results, including some quicker order fulfilment.

How it's playing out

Starbucks is still reporting declines, but management isn't expecting an immediate turnaround. "We've fixed a lot and done the hard work on the hard things to build a strong operating foundation," Niccol said after the fiscal third-quarter (ended June 29) report, "and based on my experience of turnarounds, we are ahead of schedule."

He's still in the rebuilding stage, and he expects to "unleash a wave of innovation" in 2026 that will bring Starbucks into its next phase of growth.

Although comparable sales (comps) fell 2% from last year in the quarter, Starbucks opened 308 stores, and total sales increased 4%. Comps also increased 2% in China, a strong showing in a large growth market.

What management might tell shareholders

In other words, don't expect any incredible improvement in the fourth quarter. Management declined to provide specific guidance for the quarter and said that it felt "conservative" about how the quarter would turn out.

On the negative side, it's still dealing with inflation and tariff changes, and it's expecting year-over-year cost comparisons to peak in the 2026 first quarter. It's still heavily investing in its turnaround plan, and that will hit the bottom line in the fourth quarter.

On the positive side, transactions are improving, and it has changed its supply practices to hedge better for tariffs and cost changes. The new technology it has implemented to improve the order and fulfilment process is also leading to better outcomes in stores.

One update the company already gave is that it recently had its "strongest single Tuesday and week of sales in company history the week Pumpkin Spice Latte and other fall favorites returned."

Should you buy Starbucks stock?

Starbucks stock is down 7% in 2025, and at the current price, it trades at a forward, 1-year P/E ratio of 26. That's not exactly cheap for a company that's struggling. It points to the market's overall positive view of what Starbucks can achieve under Niccol's leadership.

There's always the chance that Starbucks overdelivers in the fourth quarter and the price jumps, but investors shouldn't buy before Oct. 29 with that expectation. If you can buy and hold for the long term, Starbucks could end up making a huge recovery and offering years of growth and stability. It also pays a dividend that yields 2.9% at today's price, and it could be a good candidate for passive income even today.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $469,853!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,941!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $669,449!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of October 20, 2025

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum (ETH) Price Closes Above $3,900 — Is a New All-Time High Possible Before 2024 Ends?Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
Author  Beincrypto
Dec 17, 2024
Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
placeholder
What to expect from Ethereum in October 2025With broader sentiment worsening, user demand falling across the Ethereum network, and institutional investors pulling back, the coin faces mounting headwinds in October.
Author  Beincrypto
Sep 30, Tue
With broader sentiment worsening, user demand falling across the Ethereum network, and institutional investors pulling back, the coin faces mounting headwinds in October.
placeholder
Why the Altcoin Market Cap Decline May Deepen in OctoberThe crypto market has been turbulent in October, with altcoin market capitalization dropping another 15%. Could this downturn worsen before October ends?
Author  Beincrypto
Oct 20, Mon
The crypto market has been turbulent in October, with altcoin market capitalization dropping another 15%. Could this downturn worsen before October ends?
placeholder
Silver Price Forecast: XAG/USD slumps to near $48.00 as traders lock in profitsSilver price ( XAG/USD) extends the decline to around $48.10 during the early Asian session on Wednesday.
Author  FXStreet
Yesterday 01: 42
Silver price ( XAG/USD) extends the decline to around $48.10 during the early Asian session on Wednesday.
placeholder
BlackRock helping Bitcoin whales transition their holdings toward ETFsBlackRock is reportedly helping Bitcoin whales pivot to Wall Street by facilitating equal conversion of their coins to ETF shares.
Author  FXStreet
21 hours ago
BlackRock is reportedly helping Bitcoin whales pivot to Wall Street by facilitating equal conversion of their coins to ETF shares.
goTop
quote