Motley Fool Money Starbucks Is Back, But Is It a Buy?
Jan 28, 2026
Lou Whiteman, a contrarian Motley Fool analyst focused on valuation, and Rachel Warren, a consumer and earnings analyst, dive into Starbucks' traffic rebound, China strategy, and store reshuffling. They also cover GM’s steady profits, EV and autonomy plans, and the surprising silver rally driven by dollar dynamics and retail interest.
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Starbucks Investing For Long-Term Recovery
- Starbucks is sacrificing short-term profit to invest in wages, technology, and store improvements for longer-term growth.
- Early signs like rising traffic and 4% comp-store sales suggest the 'Back to Starbucks' strategy may be working but it's still early.
Stabilization Is Not High Growth
- Starbucks' recent comp sales recovery returns it to roughly 2023 levels rather than signaling a fresh growth era.
- Lou Whiteman warns that stabilization doesn't equal market-beating growth given an asset-light international shift.
Don't Pay Growth Multiples For Slow Growth
- Avoid overpaying for steady businesses by insisting on realistic growth-relative valuations.
- Lou suggests not paying extremely high multiples for a company growing only a few percent annually.