Starbucks

SBUX

Market cap $96.9B

SEATTLE--(BUSINESS WIRE)--Starbucks Corporation (NASDAQ: SBUX) today announced that its Board of Directors has approved a quarterly cash dividend of $0.62 per share of outstanding Common Stock. The dividend will be payable in cash on February 27, 2026, to shareholders of record on February 13, 2026. About Starbucks Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 40,000 stores worldwide, the company is.

With allegations of unfair labor practices a major point of contention in the ongoing “Red Cup Rebellion” strike, Starbucks has agreed to pay $35.5 million to more than 15,000 New York City workers, plus $3.4 million in civil penalties, for violating New York City's Fair Workweek Law, according to New York City Department of Consumer and Worker Protection (DCWP).

Starbucks (SBUX) is rated a sell due to ongoing margin pressure, weak earnings, and an unattractive risk/reward profile despite operational improvements. SBUX posted its first positive global comp in seven quarters, but operating margins collapsed to 9.4% and EPS declined, with the dividend barely covered. Competitive pressures in China and the U.S., high coffee costs, and a premium valuation (35x trailing earnings) further challenge the turnaround story.

Starbucks has agreed to pay $38.9 million to settle claims by New York City that the coffee chain violated a local law requiring fast food businesses to give workers predictable and stable schedules more than half a million times over a three-year period, Mayor Eric Adams' office said on Monday.

The global coffee chain will pay $35.5 million to more than 15,000 workers, along with $3.4 million in civil penalties and costs, the city said.

“This (law) is notoriously challenging to manage and this isn't just Starbucks issue, nearly every retailer in the city faces these roadblocks,” a company spokeswoman said.

The Starbucks Workers United escalated its “Red Cup Rebellion” strike over unfair labor practices on Black Friday, announcing that 120 stores in 85 cities had joined the effort, while Starbucks claims fewer than half that number were impacted and that the strike has caused minimal disruption over the last three weeks.

Starbucks remains a hold due to persistent margin pressure, inflationary headwinds, and a premium valuation despite recent operational improvements. SBUX's Q4 showed modest revenue growth and positive comparable store sales, but operating margins declined significantly year-over-year, limiting near-term upside. Dividend growth has slowed to a penny increase, with a payout ratio above 100% and declining free cash flow raising concerns about future dividend sustainability.

Starbucks is facing mounting pressure as its workers' union escalates an ongoing strike to more than 120 US stores across 85 cities, marking what could become the longest labour interruption in the coffee chain's history.

Starbucks (SBUX) reported earnings 30 days ago. What's next for the stock?