Why did SBUX stock rally today?

Shares jumped as Starbucks reported its first traffic growth in two years and a revenue beat, signaling early progress in the turnaround. Investors welcomed improving visits and throughput. The move faded late as traders weighed an EPS miss and a cautious FY26 EPS tone ahead of Thursday’s investor day guidance.

Did Starbucks beat earnings?

The company beat on revenue but missed EPS versus Street estimates. Management struck a cautious stance on FY26 EPS, keeping margins and China performance in focus. That mix sparked an initial rally on better demand, followed by profit taking as investors waited for investor day details on growth and costs.

Is SBUX stock expensive now?

On trailing metrics, valuation is rich: about 58x EPS, 2.94x sales, and 24x EV/EBITDA. Dividend yield is 2.56% with a high 149% payout ratio. To support the multiple, Starbucks needs sustained same-store sales and traffic growth, margin gains, and clear capital allocation. Many investors await investor day before adding.

What should investors watch at Thursday’s investor day?

Focus on China strategy, store efficiency and automation, loyalty engagement, and cost-savings targets. We want a clearer path to FY26 EPS, durable traffic growth, and margin expansion. Updates on capex and dividend priorities matter too. Any credible plan could support the premium valuation and improve conviction in the turnaround.

Global Market Insights

SBUX Stock Today: January 29 rally as traffic up for the first time in 2 years

ByHuzaifa Zahoor January 29, 2026January 29, 2026

SBUX stock jumped on January 29 after SBUX reported its first traffic growth in two years and a revenue beat. Shares spiked to $104.80 intraday before fading to $95.16 on heavy volume. The rebound suggests early progress in CEO Brian Niccol’s turnaround, though an EPS miss and a cautious FY26 EPS view kept expectations in check. With same-store sales back in the green, investors now look to Thursday’s investor day for updates on margins, China strategy, and growth drivers.