Starbucks Gets Downgraded While Brinker and Wingstop Earn Bullish Analyst Calls

2 days ago 2

Joel South

Mon, March 9, 2026 astatine 9:25 AM CDT 4 min read

Starbucks (SBUX) astatine $96.93, up 16.99% YTD, saw Q1 gross emergence 5.5%. Brinker (EAT) astatine $129.79, down 21.86%, got $184 people connected Q2 comps up 8.6%. Wingstop (WING) astatine $222.20, down 14.91%, received $320 people connected 19.2% portion growth.
Wolfe Research downgraded Starbucks pending sustained execution impervious portion upgrading Brinker connected Chili’s worth credibility and initiating Wingstop connected franchisee committedness to portion maturation contempt softer comps.
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Wolfe Research expert Greg Badishkanian issued a divided verdict connected the edifice assemblage this week, downgrading Starbucks to Peer Perform from Outperform portion simultaneously upgrading Brinker International and initiating Wingstop with Outperform ratings. The divergence draws a crisp enactment betwixt a turnaround communicative inactive nether scrutiny and 2 concepts Wolfe views arsenic structurally positioned to grow.

Starbucks (NASDAQ:SBUX) received the astir cautious treatment. Wolfe downgraded to Peer Perform without a terms target, acknowledging "green shoots" from the turnaround but stating the steadfast wants to spot grounds of sustained execution earlier committing to a bullish stance. Wolfe besides flagged an progressively competitory java scenery arsenic a headwind.

The timing is notable. Q1 FY2026 gross came successful astatine $9.92 billion, up 5.5% year-over-year and up of estimates, portion planetary comparable store income grew 4% with U.S. comparable transaction maturation turning affirmative for the archetypal clip successful 8 quarters. CEO Brian Niccol called the results grounds the strategy is "ahead of schedule." Yet Non-GAAP EPS of $0.56 missed the $0.59 statement estimate, GAAP operating borderline contracted 290 ground points to 9.0%, and nett income fell 62.44% year-over-year.

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The broader expert representation is mixed. The statement people terms sits astatine $100.44, with 13 bargain ratings, 14 holds, and 4 merchantability oregon beardown merchantability ratings. Shares are trading astatine $96.93 arsenic of this morning, beneath the statement people but besides good beneath Wolfe's anterior Outperform stance. The banal is up 16.99% year-to-date, which whitethorn partially explicate wherefore Wolfe sees constricted near-term upside without further impervious points.

Brinker (NYSE:EAT) earned an upgrade to Outperform. Wolfe acceptable a $184 terms target, citing Chili's "earned worth credibility" and postulation outperformance.

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