RBC downgrades Starbucks after strong 2026 start, says growth expectations are too high

RBC downgrades Starbucks after strong 2026 start, says growth expectations are too high

Lofty investor expectations for growth and a balanced risk-reward ratio make shares of Starbucks less compelling, according to RBC Capital Markets.

RBC Downgrades Starbucks (SBUX) Stock Amid Rising Labor Investment Concerns

Key Takeaways RBC Capital downgraded Starbucks from Outperform to Sector Perform while maintaining a $105 price target The rating cut stems from elevated labor investments and uncertain margin recovery trajectory The coffee giant unveiled a labor investment exceeding $500 million in July 2025, surpassing RBC’s projections Shares have climbed 16% in 2026 year-to-date, though the stock trades at a P/E multiple of 81.43 — approaching historical hi…