Starbucks showcases holiday cups to meet strong seasonal demand as part of its turnaround strategy. The return of seasonal favorites and specialty drinks is expected to drive significant sales. However, labor disputes pose a challenge, with baristas organizing strikes during the busiest season. The company faces legal threats from a shareholder lawsuit alleging misleading investors. Despite these challenges, Starbucks’ Back to Starbucks strategy is showing positive results, with a 1% increase in global comparable store sales. Investors must weigh these factors against the stock’s high valuation and unsustainable dividend payout ratio. The upcoming first-quarter earnings report will be a crucial test for the company’s turnaround efforts. U.S. Comparable Sales, Operating Margin, and Company Guidance will be key areas of focus for investors. The holiday quarter’s performance will determine if Starbucks can meet high expectations and set the stock’s trajectory for 2026.

Read more at Yahoo Finance: Starbucks’ Bet on a Holiday Recovery