- SBUX -- well we have strong consumer numbers, so I doubt anyone's cutting back on their lattes. Coffee was cheaper in Q3 than Q2 and 5% cheaper than last Q3.
- We know they have more stores and we know they've straightened out their new drink glitches and we know they added breakfast in a lot of places and sandwiches. Same store sales were up and I think the China numbers should be good too.
- They bought back $550M in stock (2%) and 17 analysts only think they will beat last Q3 by a penny (.17) even though they did .182 last Q and sales look stronger (with coffee down 8%).
- There's healthcare (they do that for their people) and shipping and materials but I think they have the pricing power to keep that under control, and I bet they are getting better rent deals too (something no one pays attention to but with 10 stores a day opening up, it does matter).
I was kind of hoping we'd get a sell-off but I think this morning might have been it. Dec $40s for $1 are the gutsy way to go but you can also do the Dec $37.50s for $2.25 and sell the Nov $37.50s for $1.50 leaving you with a pretty safe .75 spread on Friday.
I'm going the dangerous way but not too crazy.
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