Starbucks (SBUX) shares moved higher after CEO Brian Niccol outlined plans to renovate the company’s café locations as the next phase of its “Back to Starbucks” turnaround strategy.

SBUX opened at $100.04 on Thursday and has gained 21% over the past year. The stock has traded between $77.99 and $110.51 over the past 52 weeks.

Niccol discussed the plans in a media interview, describing café makeovers as the next chapter of the “Back to Starbucks” strategy, which is now in its second year. The initiative is intended to improve customers’ experience inside Starbucks locations and remind them of what they liked about the brand.

More than 1,000 renovations have been completed during the past nine months, and thousands more are planned for the next fiscal year. The work will cover Starbucks’ 40,990 locations worldwide, including nearly 17,000 in the United States. Because the program spans such a large store network, the pace and consistency of the rollout will be important operating details as Starbucks advances the broader turnaround.

Most of the projects will be cosmetic rather than structural. Niccol said the changes will include features such as additional seating and softer lighting to make cafés feel more welcoming. The renovation plans therefore focus on the in-store experience while the company’s recent results show both stronger same-store sales and a year-over-year decline in revenue.

Turnaround Results

Starbucks’ latest quarterly results, reported on July 29, included earnings per share of $0.85, exceeding the $0.66 consensus estimate by $0.19. Revenue totaled $9.32 billion, above the $9.17 billion analysts had expected.

Same-store sales increased 7.9%, supported by strong performance in the U.S. Revenue nevertheless declined 1.4% year over year. Starbucks issued fiscal 2026 EPS guidance of $2.55 to $2.65, while analysts are forecasting average full-year EPS of $2.64. These figures provide the next reported benchmarks for assessing the turnaround alongside the planned café renovations.

Analysts Maintain Mixed Views

Wall Street’s consensus rating on the stock remains “Hold,” with an average price target of $110.30, according to MarketBeat data. That target is approximately 10% above Thursday’s opening price.

DA Davidson raised its price target from $102 to $110 in late July while maintaining a neutral rating. Citigroup increased its target from $108 to $112 and also retained a neutral rating. Stephens initiated coverage with an overweight rating in May. Bernstein took a more cautious position in early August, downgrading SBUX from outperform to market perform.

TipRanks data presents a somewhat more positive view. Among 20 analysts, 12 have issued Buy recommendations and eight have issued Hold recommendations. The average price target in that group is $119, implying 19% upside.

Institutional ownership also featured several reported transactions. The National Pension Service acquired 37,412 shares in the second quarter, increasing its Starbucks stake by 1.4% to 2,795,886 shares. The holding was worth approximately $285.7 million. Institutional investors collectively own 72.29% of the company.

CEO Brady Brewer sold 2,229 shares on September 4 at an average price of $105.60 under a pre-arranged Rule 10b5-1 trading plan. The transaction was valued at $235,382.

Source: CoinCentral

Related filing: MarketBeat