1 Reason Starbucks Is Worth Buying in November

Starbucks (SBUX -0.18%) has been experiencing a surge in stock value recently, trading near a 52-week high after a 29% increase over the past year. Despite this, there is a strong reason to consider buying the stock: customers are spending more per visit, surpassing the company's growth target ahead of schedule. In its fiscal Q4, global comparable sales rose by 7.2%, driven by a 5.2% increase in average ticket size.

This growth reflects Starbucks' brand power, as consumers continue to spend despite higher prices affecting their finances. CFO Cathy Smith noted that only about half of the U.S. ticket gain was due to pricing and delivery, with the other half coming from customers adding food and other items to their orders. Although the stock isn't cheap at about 34 times fiscal 2026 adjusted earnings and 29 times fiscal 2027 estimates, it trades at a forward P/E of 19, higher than the S&P 500's average of about 19.

Management expects North American comparable sales to grow 4% in fiscal 2027, above the company's 3% target, with an adjusted earnings per share estimate of $3.15 to $3.25, a 18% increase from the midpoint. With the potential for up to 5,000 more U.S. coffeehouses and analysts predicting roughly 15% annual earnings growth in the next several years, Starbucks appears to be ahead of schedule on its fiscal 2028 goals.

CEO Brian Niccol remarked that the company is "probably a year ahead of schedule" on its fiscal 2028 goals, making the stock a compelling buy even at its current price point.