What Happened?
Shares of coffeehouse chain Starbucks (NASDAQ: SBUX) jumped 1.9% in the afternoon session after Iran announced the reopening of the Strait of Hormuz, which triggered a sharp drop in crude oil prices and signaled an easing of inflationary pressures on operating margins.
For the restaurant industry, lower oil costs translate directly into cheaper delivery and supply chain logistics. Also, decreased fuel prices at the pump act as an effective "tax cut" for consumers, boosting discretionary income and encouraging higher foot traffic for casual and fine dining establishments alike.
After the initial pop the shares cooled down to $100.13, up 1.8% from previous close.
Is now the time to buy Starbucks? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Starbucks’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock dropped 10.2% on the news that the company reported disappointing first-quarter 2025 results as its revenue, EPS, and EBITDA fell short of Wall Street's estimates.
The key highlight for the quarter was the drop in global same-store sales, with North America dragging results down due to a 4% decline in transactions despite a higher average spend per order. This dip in volume led to flat sales in the U.S. and a mere 2% growth globally, with the modest revenue gain largely driven by the opening of 213 new stores rather than demand at existing ones. Overall, this was a softer quarter.
Starbucks is up 19.2% since the beginning of the year, and at $100.13 per share, it is trading close to its 52-week high of $101.44 from March 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Starbucks’s shares 5 years ago would now be looking at only $851.45.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
