New York, May 24, 2026, 14:04 (EDT)
- Starbucks slipped 3.5% last week to end Friday at $103.11. The stock had hit a 52-week high earlier in May.
- Nasdaq is shut Monday for Memorial Day. Next up is a management appearance on May 28.
- Investors are looking at better sales but are also watching for problems with execution, higher labor costs and squeezed margins.
Starbucks stock heads into the Memorial Day break weaker, falling 3.5% for the week as investors took some profits after a strong spring run and weighed new concerns over the chain’s turnaround. Shares ended Friday at $103.11, off 0.98% for the day and lower from $106.82 at last Friday’s close.
The schedule is key here since markets don’t open Monday. According to Nasdaq’s 2026 calendar, U.S. equity and options markets will be closed May 25 for Memorial Day. Trading resumes with the next session Tuesday.
Starbucks lagged the market Friday. The S&P 500 rose 0.4%, the Dow was up 0.6%, and the Nasdaq composite gained 0.2%. The S&P 500 logged its eighth weekly gain in a row. Starbucks went the opposite direction.
Starbucks shares fell after gains tied to Chief Executive Brian Niccol’s “Back to Starbucks” plan. Starbucks last month said global comparable store sales grew 6.2% in the fiscal second quarter, with revenue up 9% to $9.5 billion. North America comparable sales climbed 7.1% as traffic and average tickets both increased. Starbucks Investor Relations
“Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” Niccol said on the company’s results call. “This is the Starbucks our customers deserve.” About Starbucks
Starbucks is still counting on a sales rebound. The company lifted its fiscal 2026 guidance to at least 5% growth in global and U.S. same-store sales, adjusted EPS between $2.25 and $2.45, and expects to open a net 600 to 650 new stores worldwide. Adjusted (non-GAAP) earnings take out items management says are outside normal business.
But the week gave another reason why the stock isn’t seen as just a recovery play. On May 21, Reuters said Starbucks dropped its AI inventory-counting tool across North America nine months after launch. Workers said the system made mistakes counting and labeling stock. Starbucks told Reuters it is moving to standardized inventory checks and wants to restock stores more often.
Starbucks CFO Cathy Smith last month called the next stretch a margin test rather than just a sales test. “We have more work to do,” Smith said, noting margin gains as comparable sales and cost control started making an impact. About Starbucks
Starbucks, McDonald’s, and Restaurant Brands International show uneven moves as investors track restaurant stocks. Starbucks shares ended down 0.98% Friday, a bigger loss than McDonald’s but not as deep as Restaurant Brands, according to market data. McDonald’s and Restaurant Brands International both slipped Friday, with both competing for attention alongside Starbucks in the restaurant and quick-service space.
Starbucks faced brand trouble overseas. South Korea’s Interior Ministry said it will stop giving out Starbucks products after public criticism of a Starbucks Korea campaign linked to the 1980 Gwangju crackdown, Reuters said Friday. The coffee chain’s local operator Shinsegae Group fired the head of Starbucks Korea after the backlash.
Starbucks tries to reset the tone this week. The company said Niccol and Smith will sit down for a fireside chat at the Bernstein 42nd Annual Strategic Decisions Conference on Thursday, May 28, at 11:00 a.m. Eastern Time. Investors are set to listen for any signals on North American margins, store performance, China, and more detail on required spending to keep up traffic.
Starbucks’ turnaround is boosting sales, but profits could still lag. The company posted a North America operating margin of 9.9% in the fiscal second quarter, down from 11.6% a year ago. Labor costs, inflation and product mix weighed on the gains from higher sales. If customer numbers drop or cost cuts are slow to hit, holding the stock’s recent premium may get tougher.
