Starbucks Corp. (NASDAQ: SBUX) stock spiked 5% after delivering mixed earnings on Jan. 28. Revenue was $9.92 billion, beating forecasts, but EPS at 56 cents missed estimates by 3 cents. Analysts were bullish, but stock dropped below $100. CEO Brian Niccol’s turnaround plan aims to revive the “coffeehouse experience” for growth.

Niccol’s plan focuses on sales volume to boost earnings, with Q4 same-store sales up 4%. Labor costs and traffic trends in the U.S. and China are key factors. Consumers may not see price relief due to higher input costs. Coffee prices are expected to remain steady in 2026, affecting Starbucks’ margins.

SBUX stock is flashing overbought signals, with RSI at 70 and price near upper Bollinger Band. A pullback to the 20-day moving average could present a better entry point for investors. The tough retail environment may be improving for Starbucks, with potential store openings and digital innovations supporting margin growth.

Starbucks’s growth in revenue and same-store sales, along with a more favorable 2026 outlook, suggests potential for SBUX stock. Despite being expensive at over 60x earnings, the stock still holds long-term value. Investors need to consider the company’s brand cache and future pricing power before investing.

Read more at Nasdaq: Starbucks Gets a Jolt After Earnings, But Will the Buzz Last?