Jul. 25, 2014, 11:50 AM
- "With a top and bottom line beat in a difficult consumer landscape, FQ3 lived up to the lofty expectations," says UBS's Keith Siegner (who has a Buy and $90 PT). Nevertheless. some pressure on the all-time high shares could be warranted amid management commentary (CC transcript) that FY15 earnings growth could be at the lower end of the 15-20% range. "We're not phased," he concludes, and would buy on any weakness.
- Also noting the conservative guidance, Barclays' Jeffrey Bernstein (Equal Weight and $81 PT), says the stock - at 25x forward earnings - is fairly valued.
- "Strong momentum in the business continues to make Starbucks (SBUX -2.3%) a long-term holding," says JPMorgan's John Ivankoe (Overweight and $85 PT). "While we believe some consolidation may be warranted to more aggressively purchase shares, we continue to advocate long-term investment based on uncommonly high cash flow/balance sheet flexibility, earnings power and visibility over the next few years."
- Previously: Starbucks edges lower following earnings beat
Jul. 24, 2014, 4:17 PM
- Comparable store sales globally up 6%, up 7% in the U.S. (vs. 5.1% expected), up 3% in EMEA (3.5% expected), up 7% in China/Asia-Pacific (7.1% expected).
- Operating income of $769M up 25%; operating margin up 200 bps to 18.5%.
- 344 new stores opened globally brings quarter-end count to 20,863 stores over 64 countries.
- Updated fiscal14 targets: Operating margin improvement targeted at 200 bps over 2013; adjusted EPS in range of $2.65-$2.67, with adjusted Q4 EPS expected at $0.73-$0.75. Net new stores expected at about 1,550 with Americas new stores boosted to 650 from 600.
- Fiscal 15 targets introduced: Revenue growth of at least 10%; global comp store sales growth in mid-single digits; an additional 1.6K new stores globally; EPS growth of 15-20%.
- Conference call at 5 ET
- Previously: Starbucks beats by $0.01, beats on revenue
- SBUX active AH, and currently down 0.6%.
Jul. 24, 2014, 4:08 PM
Jul. 24, 2014, 10:27 AM
- Starbucks (SBUX +0.4%) has three stores in Vietnam's capital at the moment, with one opening yesterday, the other today, and the third set for one week from now. The company entered Vietnam in February of 2013 with a store in Ho Chi Minh City, and since then has opened eight stores in that city.
- Press release
Jul. 22, 2014, 7:49 AM
- The latest food scandal in China is spreading fast, dragging in Starbucks (NASDAQ:SBUX), Burger King (NYSE:BKW) and others, as well as McDonald’s (NYSE:MCD) products as far away as Japan.
- SBUX says some of its cafes previously sold products containing chicken originally sourced from a firm that was shut down Sunday by local regulators for using expired meat and picking up meat from the floor to add to the mix.
- BKW and Papa John's (NASDAQ:PZZA) say they have stopped using food products supplied by the closed firm.
- McDonald’s and KFC parent Yum Brands (NYSE:YUM) apologized yesterday to Chinese customers after discovering the firm supplied expired meat to the two chains.
Jul. 18, 2014, 11:56 AM
- Starbucks (SBUX +0.7%) will allow customers to pick up orders set up through its mobile app sometime this year.
- The company has been testing the concept at a store in Seattle to work out the obvious issues associated with hot drink orders.
- The Starbucks mobile app has one of the highest engagement rates in the retail sector.
Jul. 17, 2014, 9:57 AM| Jul. 17, 2014, 9:57 AM | 2 Comments
Jul. 16, 2014, 11:43 AM
Jul. 8, 2014, 9:12 AM
- Coffee prices continue to retreat from their highs as improved weather in Brazil and strong output in India pushes up estimates on global output for the robusta and arabica varieties.
- Many coffee sellers have already lifted retail prices (KRFT, SBUX, SJM, DNKN) and could see a benefit if their purchasing contracts get locked-in at lower levels.
- Related ETFs: JO
Jul. 7, 2014, 8:03 AM
- Starbucks (SBUX) is positioning itself to boost its dividend significantly within the next six months, according to Belus Capital's Brian Sozzi.
- The company also landed on a short list from Markit Dividend Research of the S&P 500 companies most likely to raise their dividend payout rate in the second half of the year.
Jun. 30, 2014, 7:07 AM
- A jump in beef prices has restaurant operators scrambling to avoid taking a hit on margins this year.
- While Chipotle has been able to pass on higher input costs to consumers, most chains are seeing consumer push back on price hikes.
- A new twist" Fast-food chains Carl's Jr. and Hardee's have introduced smaller-sized sandwiches to its menu to try to keep profits intact.
- Related stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
- Previous: Beef prices could pressure restaurant margins
Jun. 20, 2014, 12:30 PM
Jun. 19, 2014, 2:26 PM
- UBS raises profit estimates on Starbucks (SBUX +2%) for FY14 ($2.67 from $2.65) and FY15 ($3.16 from $3.11).
- New initiatives, product roll-outs, and global growth channels all look set to deliver as promised, reasons the investment firm.
- UBS on SBUX: "Starbucks remains among the best positioned restaurant names over the medium to long-term, with several enablers supporting a +10% top line, +15- 20% EPS growth."
Jun. 17, 2014, 6:57 AM
- Coffee output in India is forecast to rise after suffering a setback last year.
- Higher production from the region could increase global supply to pressure prices after a drought in Brazil has had major impact on the coffee market.
- Prices on bagged coffee has been increased by a wave of companies including J.M. Smucker and Kraft Foods.
- Wholesale coffee prices still have a big wildcard in the mix with the emergence of El Nino.
- Related stocks: SJM, KRFT, THI, SBUX, GMCR, MCD, JVA, KRFT, DNKN.
- Related ETF: JO
Jun. 12, 2014, 8:24 AM
- Starbucks (SBUX) is expected to announce today a national roll-out of wireless charging stations at its stores and Teavana outlets.
- The company is partnering with Duracell Powermat (PG) on the initiative.
- The marketing mavens working for Starbucks say the strategic move to eliminate the power cord in the charging process will strengthen the reputation of its brand as tech-friendly.
Jun. 11, 2014, 3:23 PM
- Execs with Starbucks (SBUX +0.3%) presented today at the William Blair & Company Growth Stock Conference
- EPS growth of 20% to 22% is forecast.
- The company expects to have 1.5K stores in China by the end of the year.
- Sales have improved at every 2-hour interval of the day with the 11:00 a.m.-1:00 p.m and 1:00 p.m.-3:00 p.m. windows showing the strongest pace of comp sales gains.
- Offering beer and wine at stores has lifted the average ticket level at participating stores.
- CFO Scott Maw notes tea is a bigger market than coffee and is growing at a faster pace. Tea opportunities could broaden as tea concept stores in the U.S. draw notice.
- "Significant innovation is on the docket," says management. Look for the trend of 1% to 2% of comp growth from innovation to continue at Starbucks.
- Express ordering via mobile app is on the agenda. Testing is ongoing.
Starbucks Corp is the roaster, marketer & retailer of specialty coffee in the world, operating in 65 countries. It sells a variety of coffee & tea products. It sells goods and services under brands under Teavana, Tazo, Seattle's Best Coffee, etc.
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