Starbucks Has Returned—Is Now the Time to Invest?

Podcast Highlights: Starbucks, GM, and the Silver Market

On this episode, Motley Fool contributors Travis Hoium, Lou Whiteman, and Rachel Warren explore several timely topics:

• Starbucks' latest financial results
• General Motors' earnings update
• GM's advancements in autonomous vehicles
• The ongoing surge in silver prices

Starbucks: Signs of a Turnaround?

Recorded on January 28, 2026

Travis Hoium opens the discussion by noting the start of earnings season, with Starbucks taking the spotlight. Rachel Warren shares that Starbucks delivered mixed results, but there were encouraging developments. The company saw a 4% rise in comparable store sales globally and in the US, fueled by a 3% increase in customer visits. Revenue exceeded expectations, even though profits fell short of analyst forecasts. In China, Starbucks’ second-largest market, same-store sales climbed 7%, marking a notable improvement in a region where the company has faced challenges.

Rachel points out that Starbucks is prioritizing long-term growth over immediate profits, investing heavily in employee wages and technology. The company is transitioning to a licensing model in China through a joint venture with Boyu Capital, aiming for a lighter asset footprint while maintaining brand control. Starbucks plans to open 600 to 650 new company-owned and licensed cafes in the coming year, while closing around 400 US locations after 2025. The next fiscal year is seen as a transitional period, with early signs of positive momentum that investors should watch closely.

Investor Perspectives on Starbucks

Lou Whiteman observes that while Starbucks is showing signs of recovery, the growth rates may not be compelling enough for investors seeking high returns. He notes that the company’s shift to a lighter asset model internationally could limit its long-term growth potential. Lou also highlights that Starbucks’ valuation appears high relative to its recent growth rates, suggesting that the stock may not offer the best value for growth-oriented investors.

Rachel agrees, emphasizing that Starbucks faces a tough balancing act: it must continue investing in growth to stay competitive, even as profits take a hit. She advises caution for investors, noting that while there are early indications of a turnaround, the strategy is still in its early stages.

General Motors: Navigating a Shifting Auto Market

The conversation shifts to General Motors, which recently reported a strong earnings performance. Despite a drop in annual net income to $2.7 billion from $6 billion the previous year—largely due to special charges related to electric vehicle capacity adjustments and restructuring in China—GM’s revenue reached approximately $185 billion for the year. The company’s profitability continues to be driven by its traditional combustion engine vehicles, especially large trucks and SUVs, which provide robust margins in North America.

Rachel notes that GM is taking a cautious approach to electric vehicles, focusing on cost efficiency and maintaining its position as the second-largest automaker in the US. While Tesla often dominates headlines, GM has delivered more stable results recently, which the market seems to appreciate.

Comparing GM and Tesla

Lou Whiteman cautions against comparing GM’s performance directly to Tesla, pointing out that while GM may outpace Tesla in some areas, it still lags behind the broader S&P 500 over time. He credits GM’s leadership for focusing on running a solid business rather than chasing headlines, but acknowledges that the auto industry remains a challenging, low-growth sector.

GM’s Autonomy Strategy and Share Buybacks

Travis highlights GM’s recent announcement about introducing hands-off, eyes-off driving capabilities in the Cadillac Escalade by 2028, potentially achieving Level 3 autonomy. Lou explains that while this is a step forward, the entire industry is moving in this direction, and the timeline may not be critical as long as progress continues steadily.

Rachel adds that GM’s new $6 billion share buyback program, following a $10 billion repurchase in 2023, has significantly reduced outstanding shares and boosted earnings per share. The company has also increased its dividend by about 20% for 2026. While these moves may appeal to some investors, Rachel personally finds GM’s growth profile less compelling for her own portfolio.

Spotlight on Silver: What’s Fueling the Rally?

To wrap up, the hosts discuss the recent volatility in precious metals, particularly silver. Lou explains that the surge is more about currency dynamics than industrial demand, with a weaker US dollar prompting investors to seek alternatives like silver and gold. He cautions that while there’s been a lot of speculative interest, especially from retail investors, the situation warrants close monitoring rather than immediate concern.

Rachel agrees, noting that central banks and institutional investors have been diversifying away from dollar-denominated assets, making precious metals more attractive when the dollar is weak. However, she warns that the influx of speculative trading could lead to sharp corrections, so investors should proceed carefully and understand what they’re buying.

Travis observes that Bitcoin hasn’t mirrored the trends seen in gold and silver, highlighting the complexity of these markets and their impact on the broader economy.