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1 Reason Starbucks Is Worth Buying in November

Via Motley Fool

John Ballard, The Motley Fool Sat, November 14, 2026 at 1:50 PM EST 3 min read SBUX -0.25% NVDA -3.12% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

A year ago, Starbucks (NASDAQ:SBUX) was barely growing. Global comparable sales -- sales at stores open at least a year -- rose just 1% in the fourth quarter of fiscal 2025.

Now, the stock trades near a new 52-week high, up 29% over the past 12 months. But one reason makes Starbucks worth buying anyway: Customers are spending more per visit, putting the company ahead of schedule on its long-term growth target.

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In its fiscal Q4 (ended Sept. 27), global comparable sales rose 7.2%, led by a 5.2% increase in average ticket. That reflects brand power, as most consumers continue to wrestle with higher prices dragging down their finances. But that hasn't prevented them from splurging on Starbucks.

CFO Cathy Smith said only about half of the U.S. ticket gain came from pricing and delivery. The other half can be attributed to customers adding food and other items to their order.

At about 34 times fiscal 2026 adjusted earnings and 29 times fiscal 2027 estimates, the stock isn't cheap. The average forward P/E for the S&P 500 is about 19 as of Nov. 10.

But management expects fiscal 2027 North America comps to grow about 4%, above the company's 3% target. It guided for adjusted earnings per share of $3.15 to $3.25 -- close to 18% growth at the midpoint. Management sees room for up to 5,000 more U.S. coffeehouses, and analysts expect roughly 15% annual earnings growth in the next several years.

CEO Brian Niccol said the company is "probably a year ahead of schedule" on its fiscal 2028 goals. That's why I believe the stock is worth buying even at these highs: A turnaround moving faster than planned, with years of growth still ahead.

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John Ballard 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.

1 Reason Starbucks Is Worth Buying in November was originally published by The Motley Fool

Read original at Yahoo Finance News

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