Argus Research has recently upgraded Starbucks Corporation (NASDAQ: SBUX) from “Hold” to “Buy,” setting a price target of $115. This upgrade reflects confidence in Starbucks’ strategic initiatives aimed at enhancing customer experience and driving growth.
Reasons for the Upgrade
📱 Digital Enhancements – Starbucks’ focus on digital improvements, including advancements in its mobile ordering and payment systems, is anticipated to streamline operations and boost customer satisfaction.
📋 Menu Simplification – By simplifying its menu, Starbucks aims to improve operational efficiency and reduce wait times, thereby enhancing the overall customer experience.
🏢 Store Remodeling – The company’s efforts to remodel stores are expected to create more inviting environments, potentially increasing customer traffic and same-store sales.
🎯 Strategic Marketing Shift – A move away from frequent promotions towards brand-focused marketing is projected to strengthen Starbucks’ market position and support long-term growth.
Argus also noted that the recent sell-off in Starbucks’ stock presents a buying opportunity for investors, as these strategic initiatives are likely to drive future growth.
Dividend Fundamentals
💰 Dividend Yield – As of March 17, 2025, Starbucks’ dividend yield stands at approximately 2.38%.
📅 Annual Dividend – The company pays an annual dividend of $2.44 per share, with the most recent quarterly dividend of $0.61 declared on December 11, 2024, and paid on February 28, 2025.
📈 Dividend Growth – Starbucks has demonstrated a commitment to increasing shareholder value by consistently raising its dividend payouts over the years.
Investors seeking stable income may find Starbucks’ dividend fundamentals appealing, especially in light of the company’s strategic initiatives aimed at enhancing operational efficiency and customer satisfaction.