DA Davidson Sees Starbucks (SBUX) Turnaround Progress but Initiates at Neutral

Starbucks Corporation (NASDAQ:SBUX) is included among the 13 Best Defensive Dividend Stocks for 2025.

On March 6, DA Davidson initiated coverage of Starbucks Corporation (NASDAQ:SBUX) with a Neutral rating. It set a $97 price target on the stock. The firm said the company’s turnaround efforts appear to have repositioned the business for more sustainable growth. Even so, the analyst pointed to some uncertainty. In a research note, the firm said the pace of same-store sales improvement needed to reach the higher end of fiscal 2028 margin, and EPS guidance remains unclear. Visibility on when the company can regain its historical flow-through margins is still limited. Until there is clearer margin visibility, DA Davidson said it prefers to stay neutral on the stock.

In a separate development, Starbucks is expanding its corporate footprint. According to a report published on March 4, the company plans to open a new office in the South later this year. The Seattle-based coffee chain will establish an office in Nashville, Tennessee. The move is part of a broader effort to grow its presence across North America, particularly in the central US, the South, and parts of the Northeast. The information came from an internal message reviewed by FOX Business.

The Nashville office will house teams responsible for managing parts of Starbucks’ supply chain across North America. “To support these ambitions, we have made the decision to establish a strategic presence in the Southeast region of the U.S., and will be opening an office in Nashville, Tennessee, later this calendar year,” the company said.

Starbucks plans to offer relocation opportunities to dozens of employees currently based in Seattle. The company also expects to add new roles in the Nashville area over time. According to the Wall Street Journal, employees who choose not to relocate may receive severance and can apply for other open positions within the company.

Starbucks Corporation (NASDAQ:SBUX) roasts, markets, and sells specialty coffee around the world. Its North America segment includes the United States and Canada. The International segment covers China, Japan, Asia Pacific, Europe, the Middle East and Africa, Latin America, and the Caribbean.

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