Today, 1:08 PM
- 7-Eleven and drone delivery service upstart Flirtey announce that they have completed the first fully autonomous drone delivery to a customer's residence. The pair says the development will help advance research toward integrating drones into the National Airspace System.
- The drone delivery in the Reno area, which marked the first time a U.S. customer has received a package to their home via drone, included Slurpee drinks, a chicken sandwich, donuts, hot coffee, and candy.
- Looking ahead, the two companies have plans to expand drone delivery tests and work closely together, according to a top 7-Eleven exec.
- Drone watch: While there's some speculation on the ways that companies such as Amazon (NASDAQ:AMZN), Wal-Mart (NYSE:WMT), Walgreens Boots Alliance (NASDAQ:WBA), and Domino's Pizza (NYSE:DPZ) could use drone delivery, many industry watchers think emergency conditions (flood/forest fire/earthquake/medical) or niche situations (oil rigs/barrier islands/inaccessible roads) are the most likely scenarios for widespread drone action. Earlier this year, an article in the MIT Technology Review speculated that an intermediary dropping off point out such as the local Starbucks (NASDAQ:SBUX) store could be utilized instead of working out all the problems of home delivery.
- Related (directly and tangentially) stocks: AMBA, AVAV, DJI, OTCQX:DRNE, HON, INVN, IXYS, GPRO, TRMB, FDX, UPS, TGT.
Yesterday, 11:08 AM
- Starbucks (NASDAQ:SBUX) is now up 0.26% as sentiment has swung back around after the company's Q2 earnings report.
- A contributing factor may be the appearance by Starbucks CEO Howard Schultz on CNBC during which he said the China business could be larger than the U.S. business. Schultz noted that Starbucks is on a pace to open a store every day in China.
- On Wall Street, both Wedbush and Piper Jaffray backed their Outperform ratings on SBUX.
Thu, Jul. 21, 7:36 PM
- Starbucks (NASDAQ:SBUX) CEO Howard Schultz says the deceleration in U.S. same-store sales to 4% in Q2 was an "anomaly" related to the roll-out of the company's new loyalty program.
- The company may have also suffered from the general slowness in restaurant traffic in the U.S. which some analysts have tied to civil unrest and social anxiety. Earlier today. Domino's Pizza reported a blistering pace of same-store sales, seen by some as a reaction to the stay-at-home mentality.
- Schultz thinks Starbucks has pulled the right levers with its promotions to help restore +5% U.S. comps.
- SBUX earnings call webcast
- SBUX -2.78% AH to $56.00.
Thu, Jul. 21, 4:27 PM
- Starbucks (NASDAQ:SBUX) is lower after setting a record for FQ3 revenue, but missing the estimate of analysts. The company reported global comparable store sales rose 4% in FQ3. The mark is notably lower than the pace seen in recent quarters.
- The average ticket was up 4% at comparable stores, while the total number of transactions was level from a year ago.
- Comp growth by region: Americas and U.S. +4%; EMEA -1%; China/Asia Pacific +3%.
- China was a strong spot again, with comparable-store sales growth of 7%.
- Mobile Order and Pay usage accounted for 5% of U.S. transactions, up from 4% in FQ2.
- The company's operating margin increased 30 bps to 19.6%. Lower commodity costs helped pad the bottom line and helped to offset labor and technology investments.
- Starbucks now has 12.3M active loyalty members, up 18% from a year ago.
- Starbucks sees FQ4 EPS of $0.54-$0.55 vs. $0.55 consensus. Full-year revenue growth of 10% is now anticipated off a mid-single digit comp.
- SBUX -3.45% AH to $55.59
Thu, Jul. 21, 4:05 PM
Wed, Jul. 20, 5:35 PM
Tue, Jul. 19, 1:20 PM
- Food industry experts see some potential trouble ahead for Starbucks (SBUX -0.5%) as it attempts to scale up Princi. Last week, the company disclosed it took a stake in Princi and announced the Italian premium bakery will be an exclusive supplier to Reserve stores.
- "It will be difficult for Starbucks to retain the qualities and uniqueness that make the product artisanal as they move from handcrafted to commercial," observes Brian Numainville of the The Retail Feedback Group.
- Other concerns cited are the difficulty in remodeling kitchens and striking the required bakery skillset with employees.
- On the positive side, Starbucks is familiar with the integration process after successfully bringing La Boulange, Teavana, and Evolution Fresh products into its stores. Seeking Alpha contributor Nathaniel Matherson delved into other reasons why the Pinci partnership looked promising in a recent article.
Fri, Jul. 15, 2:24 PM
- Same-store sales growth in the restaurant sector fell 1.1% in June, according to Black Box Intelligence.
- Same-store traffic was down 3.5% Y/Y during the month and 3.0% for all of Q2. The worst numbers were posted in the Southwest part of the U.S. That data point, along with the recent issues at Taco Bell (weak Q2 U.S. sales) and Chipotle (survey results), raises questions on how Chuy's Holdings (NASDAQ:CHUY), Qdoba (NASDAQ:JACK), and Del Taco (NASDAQ:TACO) fared during the quarter.
- The weak month of same-store sales growth also puts a spotlight on McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) to see if they matched their recent performances in the U.S.
- Earlier sector news: Restaurants see some relief on commodity costs (July 15)
- Related stocks: EAT, WEN, SONC, QSR, CMG, NDLS, PLKI, BOBE, BLMN, RT, TXRH, RRGB, ZOES.
- Related ETF: BITE.
Fri, Jul. 15, 11:25 AM
- The restaurant sector continues to face pressure in generating traffic and with labor costs rising, but commodity prices are working in its favor as of late.
- The slide in prices in Q2 was 64% on eggs, 20% for dairy, 15% for beef, 12% for cheese, and 11% for chicken, according to analysis from Evercore.
- "Commodities continue to benefit margins with the breakfast (restaurant) day-part benefiting the most," noted Evercore analyst Matt McGinley earlier this week.
- While each company hedges commodity costs differently, the general trend of lower costs is favorable for a host of chains - including Denny's (NASDAQ:DENN), Starbucks (NASDAQ:SBUX), Dunkin' Donuts (NASDAQ:DNKN), Domino's Pizza (NYSE:DPZ), Cheesecake Factory (NASDAQ:CAKE), Panera Bread (NASDAQ:PNRA), IHOP (NYSE:DIN), Wingstop (NASDAQ:WING), Bojangles (NASDAQ:BOJA), Kripsy Kreme Doughnuts (NYSE:KKD), and Steak 'n Shake (NYSE:BH).
- Related ETF: BITE.
Thu, Jul. 14, 9:34 AM
- Niantic Labs appears set to allow businesses to officially sponsor locations for in-game activities for Nintendo's (OTCPK:NTDOY, OTCPK:NTDOF) Pokémon, according to media reports.
- That's not news to followers of Reddit posts which dug deep into the Pokémon code to discover bits with "McDonald's" already in it (see code here)
- Though the monetization of the Pokémon phenomenon was widely expected, it also has deeper implications for retailers even beyond trying to scrap for foot traffic through establishing Lure modules, PokeStops, and Pokemon Gyms. Pokémon may come and go. The intersection of real-world shopping and augmented reality games is probably here to stay.
- Companies with an eye on augmented reality and location-based entertainment as it relates to increasing traffic run far and wide. Restaurants (QSR, SBUX, MCD, CMG, WEN, NDLS, PNRA, DNKN), store chains (GPS, AEO, ANF, TGT, ROST, DG, DLTR), and movie theaters (AMC, CKEC, IMAX, CNK, RGC) come to mind.
- Google (GOOGL, GOOG) is also keeping track of all the Pokémon developments as it served as an incubator for Niantic Labs up until the Alphabet creation. Recode says it's unclear what stake that Google still has in the software developer.
- Pokémon news on Seeking Alpha
Thu, Jul. 14, 7:08 AM
- Starbucks (NASDAQ:SBUX) announces it will be a global licensee and investor in the Italian restaurant Princi, a boutique bakery and café founded by Rocco Princi in 1986.
- The investment team, which includes Milan-based Angel Lab and Pekepan Investments, will focus on expanding the number of standalone Princi locations worldwide as well as making Princi the exclusive food purveyor at the new Starbucks Reserve Roastery and Tasting Rooms in Shanghai and New York.
- The Shanghai and New York Roastery locations are on track to open in 2017 and 2018, respectively.
- “We have never baked in our stores in 45 years. But all of that will change with the creation of this unique partnership,” says CEO Howard Schultz.
- In addition to the expansion of standalone Princi specialty stores and inclusion of fresh baking in Starbucks Roasteries, the company will also partner with Rocco Princi to bring a premium food experience to its new Reserve-only stores starting in 2017.
- Source: Press Release
Wed, Jul. 13, 6:22 PM
- Starbucks (NASDAQ:SBUX) says it is buying a stake in the Princi Italian bakery and plans to expand it with new locations; financial terms are not disclosed.
- SBUX says Princi goods will be sold in new Roastery locations that are opening in Shanghai next year and New York in 2018, and a Princi-branded shop may be opened in Seattle next year; Princi currently has four locations in Italy and one in London.
- CEO Howard Schultz says the Princi partnership will bring baking inside SBUX locations for the first time in the chain’s 45-year history.
Wed, Jul. 13, 7:37 AM
Tue, Jul. 12, 7:14 AM
- Price hikes at Starbucks (NASDAQ:SBUX) roll out today in the U.S. on about 35% of its products.
- The company says it expects the the average customer ticket to increase by about 1% after accounting for the new prices ($0.10-$0.20 on select sizes of brewed coffee and $0.10-$0.30 on espresso and tea lattes).
- Yesterday, Starbucks announced pay raises across the board at the company.
Mon, Jul. 11, 11:19 AM
- Starbucks (SBUX -0.3%) says all workers in the U.S. will receive a pay raise of at least 5%. Changes in the restaurant chain's stock options awards mean that employees could see an accumulated compensation benefit of as much as 15%.
- The company is also adding changes to its health care plan options and offering a more relaxed dress code.
- The pay hikes go into effect on October 3.
- Starbucks letter to employees
Thu, Jul. 7, 11:40 AM
- Prices on some Starbucks (SBUX -0.2%) drinks will go up by as much as $0.30 next week. The price increases were inadvertently posted early for some customers due to a technology glitch.
- The company has a steady track record of pushing through a round of summertime price increases.
- Wholesale coffee prices have trended higher recently, while dairy costs are lower.
Starbucks Corp. engages in the manufacture and sale of coffee and tea. The firm operates through the following segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; Channel Development; and Other. Its brand portfolio includes Starbucks Coffee, Seattle's Best Coffee, Tazo Tea,... More
Industry: Specialty Eateries
Country: United States
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