Investor Feedback To Our Upgrade

Research evidence excerpt

Investor Feedback To Our Upgrade

Restaurants

Starbucks Corporation

TD SECURITIES (USA) LLC COMPANY UPDATE

May 15, 2026

Price: $106.40 (05/14/2026) Investor Feedback To Our Upgrade

Price Target: $120.00

BUY (1)

ESG SCORE: 57/100

Andrew M. Charles, CFA THE TD COWEN INSIGHT

646 562 1332

We have generally received more agreement than pushback to our upgrade following our HQ

andrew.charles@tdsecurities.com

visit. Herein we highlight feedback and include poll results from our webinar briefing investors.

Agnes Lim

646 562 1365 Da Bulls Feedback

agnes.lim@tdsecurities.com

Recent F2Q (March) sales strength & the EPS beat have given bulls added confidence in

Zach Ogden, CFA CEO Brian Niccol and the Back to Starbucks turnaround plan. Bulls agree that the strength

646 562 1355

of the category allows for multiple concepts to win vs conventional wisdom from the soft

zach.ogden@tdsecurities.com

pizza, burger and chicken categories that are more zero sum in nature. This same store sales

Key Data outperformance is anticipated to fuel EPS beats. Bulls agree with our 2028-29 EPS forecasts

Symbol NASDAQ: SBUX of ~$4 & ~$4.50, with our $120 price target derived by applying normalized peak 30x & 5Y

Beta: 1.01 average ~26x, respectively.

52-Week Range: $106.58-$78.46 Da Bears Feedback

Market Cap: $121.3B

Net Debt (MM): $22,691.1 We have received 3 key points of push back from the bears. The first is around the longevity

Cash/Share: $2.38 of same store sales, with the belief that either the low-hanging fruit has been plucked, or that

F2Q's +7% represented multiple events converging (sales transfer, added labor to improve

Dil. Shares Out (MM): 1,143.2

Enterprise Value speed, marketing enhancements, etc.). The biggest point of bear push back is the flow-thru of

$144,335.0