at CNBC.com (Thu, 7:00PM)
at CNBC.com (Thu, 6:55PM)
at CNBC.com (Thu, 6:54PM)
at Benzinga.com (Thu, 4:56PM)
at CNBC.com (Thu, 9:24AM)
at CNBC.com (Thu, 7:00AM)
at CNBC.com (Wed, 4:51PM)
at Nasdaq.com (Tue, 1:02PM)
at Nasdaq.com (Mon, 1:01PM)
at Nasdaq.com (Mon, 1:00PM)
- While my previous article used the Dividend Discount Model to yield a price target of $101, the Capital Asset Pricing Model suggests an even higher target of $137.
- When compared to Dunkin' Brands Group and McDonald's Inc. to Starbucks, we see that Starbucks is the only company with its daily return meeting its expected return.
- With a beta of 0.95 and an R-Squared value of 28.74%, the company overall has less risk characteristics relative to the broader market.
- SBUX's flagship location in Chengdu is part of its aggressive China growth strategy.
- Localization of menu and storefront will be important to attract traffic.
- Maintaining supplier integrity and quality will be key priorities.
- Starbucks is one of the few in-store retailers that we'd take a chance on. Otherwise we're bearish on retail.
- Starbucks is going to transform into more than just a coffee shop.
- We think there's long-term potential.
Starbucks: Recently Announced 5-Year Plan Looks Great, But...
- The company plans to push further into the tea market and offer more consumer food products in supermarkets.
- The company plans to expand their food offerings and alcoholic beverage offerings into more stores to expand revenue during the quiet lunch and evening periods.
- The company’s announced mobile order and pay process will allow customers to place orders in advance of their visit and allow for food and beverage delivery in select areas.
- A prospective SBUX investor should either wait for a pull back in the company’s shares or average into a position in SBUX shares in set dollar amount increments.
- A history of substantial dividend increases will reward SBUX shareholders as SBUX's initiatives continue to unfold.
- I came away positive after attending SBUX investor day where the company clearly outlined its 5-year growth plan.
- Expanding services (i.e. mobile pay, mobile order, food delivery) and derivative food/beverage (i.e. wine/beer, tea, lunch) will drive domestic growth.
- China and India will drive growth post 2019 when North America is expected to hit maturity.
- SBUX detailed a five-year plan to get to $30 billion in revenue.
- Some of the (quite interesting) details suggest maybe even the $30 billion target is conservative.
- What would $30 billion in revenue translate into EPS?
- And does that EPS, along with a five-year discount rate, make SBUX under or overvalued?
Location, Location, Starbucks... A Different Approach To Real Estate Investing
- Would we be right in categorizing McDonald's as a real estate company? What about Starbucks?
- Is Starbucks using the same model for choosing locations as McDonald's?
- Can we profit from Starbucks as a real estate company?
Starbucks Likely To Brew Significant Gains For Your Portfolio
- Starbucks offers compelling growth potential (estimated at nearly 18% annually), but the shares trade at a premium multiple (25 times forward earnings).
- The DRAG analysis investigates the company's fundamental attributes and views its strong competitive position, flexible balance sheet and increasing dividend as positive factors.
- The resulting calculation demonstrates that, based on this framework, Starbucks shares are currently undervalued by 25% and therefore represent an attractive investment opportunity in the consumer sector.
- Starbucks' mobile ordering - a way to squeeze more sales out of each of its outlets, keep same store sales growth humming along, and fatten profit margins.
- The company faces an aggressive schedule and there are plenty of logistical issues to work out.
- But the potential payoff for Starbucks is huge.
- This is the first of a 10 part piece where I pick 10 stocks for the long-run.
- Starbucks has a solid moat and will still be serving coffee 20 years from now.
- Starbucks still has big potential in tea, China, and in its digital efforts.
Starbucks: Quietly Becoming A Dividend Growth Powerhouse
- Revenues in the latest quarter grew, but not as much as investors had expected and the company’s share price dropped.
- Lost in the disappointing revenue growth was a 23 percent dividend increase and a tripling of SBUX’s dividend since 2010.
- The company is becoming a powerful force in the dividend growth category of stocks.
- The long-term plans and objectives of SBUX management remain intact and will reward current and future shareholders.
- Prospective SBUX shareholders should wait for the share price to pull back before establishing a full position.
Starbucks Stock Fails To Woo Investors Despite Top Line Growth
- Starbucks sales see growth, but fail to meet analysts’ forecasts. Consolidated net revenues increased by 10% to $4.2 billion with a consolidated operating income of $854.9 million this quarter.
- Starbucks continues to exploit its innovative tradition and raised prices on its products. It was able to realize more revenue through raising prices.
- It plans to launch a nationwide delivery service based on a mobile app. This initiative carries a lot of potential but also carries some evident risks.
- Recovering world economy is likely to boost consumption expenditure in the future which could be seen as an opportunity to generate more sales.
- The coffeehouse company’s stock will not likely see any vertical growth anytime soon.
- While some were disappointed with Starbucks’ Q4 report, we are encouraged by the company’s strong and consistent sales growth.
- Starbucks is going mobile—pushing new frontiers of e-commerce in the food and beverage industry.
- The company proved resilient to a Q3 price hike; customers are apparently loyal.
- With feasible strategies for growth on the horizon, both domestically and internationally, we are optimistic on the company and stock as 2014 comes to a close.
- Starbucks released Q4 earnings on October 30.
- Dunkin' Brands released Q3 earnings on October 23.
- Both stocks reacted by moving to the downside.
- Which company had the better quarter?
- Starbucks 2.0 could be a major tailwind for sales and earnings growth going forward.
- SBUX is expensive but if the company can execute on mobile initiatives $75 could turn out to be a great buying opportunity.
- Innovation and a rabid customer base means that while SBUX is expensive, I'm getting bullish here.
Wed, Dec. 17, 3:26 PM
- Starbucks (SBUX +1.2%) announces it opened a flagship store in Chengsu aimed at growing the brand in the southwest and central part of the nation.
- The company also plans to use the Starbucks Talent Exchange Program to create work exchange programs between Starbucks China and other regions.
- Singapore will be the first international location that will be part of the exchange program.
Mon, Dec. 8, 11:39 AM
- Starbucks (SBUX +0.5%) trades higher after being named a Conviction Buy List stock at Goldman Sachs.
- The investment firm took a few days to factor in the striking Investor Day presentation by Starbucks.
- Previously: Starbucks Investor Day highlights (Dec. 04 2014), Reaction to the new mobile and wine strategy at Starbucks (Dec. 05 2014)
Fri, Dec. 5, 8:32 AM
- JPMorgan raises its price target on Starbucks (NASDAQ:SBUX) to $89 from $82 after taking in the company's Investor Day presentation.
- Piper Jaffray thinks share will "double" in the next four years. Needless to say the firm has an Overweight rating locked in on the Seattle company.
- Other analysts are giving Starbucks CEO Howard Schultz for staying ahead of the "seismic" change in retail toward mobile as best he can with a brick-and-mortar operation.
- Previously: Starbucks Investor Day: Wine, mobile ordering, and China expansion all on tap (Dec. 04 2014)
- SBUX +0.9% premarket.
Thu, Dec. 4, 11:18 AM
- Starbucks (SBUX +0.3%) says 20% to 25% of all its stores will offer the Starbucks Evenings experience by the end of FY19.The initiative includes beer and wine choices for consumers.
- A national roll-out of the company's Mobile Order & Pay platform will be launched in 2015 in a development which is forecast to increase speed of service and boost brand loyalty.
- Starbucks says it will double the store count in China to over 3K stores by 2019.
- Guidance: The coffee juggernaut projects revenue will approach $30B in FY2019, up 88% from the FY14 tally.
- Starbucks Investor Day webcast
Mon, Dec. 1, 3:30 PM
- The National Restaurant Association's Restaurant Performance Index gained 1.8% M/M in October to 102.8.
- The poll of restaurant operators indicated 55% saw improved traffic trends in October.
- Once again, food commodity expenses and rising labor costs are viewed as potential drags.
- The positive read on the sector came before the November slide of gas prices which is viewed as a potential driver for restaurant traffic and spending.
- Restaurants stocks: CAKE, CBRL, CMG, DNKN, 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.
Sat, Nov. 29, 10:29 AM
- Analysts with Gasbuddy.com predict some gas stations in the U.S. will offer $2 per gallon gas by Christmas.
- The last time the average price of gas in the U.S. was below $2 was in March of 2009.
- Forecasts from economists vary widely on the overall gas benefit to consumers for Q4. The high end from the group is an outlook of $300 per household, while the low end is closer to $100.
- Most analysts see an immediate lift for retail chains with large distribution channels. Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), Dollar General (NYSE:DG), Family Dollar (NYSE:FDO), Dollar Tree (NASDAQ:DLTR), Big Lots (NYSE:BIG), and Five Below (NASDAQ:FIVE) come to mind.
- Airline stocks (JBLU, DAL, UAL, LUV, AAL, RJET, ALK, HA, ALGT, VA) have already ripped strong gains off the OPEC news, although some see even more long-term upside as forward fuel hedges get reworked.
- A sustained period of low gas prices should lift restaurant stocks (CAKE, CBRL, CMG, DNKN, 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) say some analysts.
- The gaming sector is (CZR, PNK, BYD, ISLE, CNTY, MCRI, MGM, NYNY) also an off-the-radar pick to bounce.
Sat, Nov. 22, 11:49 AM
- Starbucks (NASDAQ:SBUX) plans to introduce Powermat wireless charging stations at close to 200 stores in the San Francisco region.
- The Powermat cuts out cords in the charging process by using a process called inductively coupled power transfer.
- A broader roll-out of the technology by Starbucks is planned across the U.S. and Europe within a year.
- General Motors (NYSE:GM) is also an early adopter of the Powermat wireless charging system with integration in the 2015 Cadillac ATS. The automaker is an investor in Powermat through its nimble VC arm.
- Duracell sits right smack in the middle of the Powermat innovation as the company with the brand and manufacturing capabilities to aim high. The swap of the business from profit-focused Procter & Gamble (NYSE:PG) to strategic-minded Berkshire Hathaway (BRK.A, BRK.B) sets up well for investments in long-term growth, note analysts.
Thu, Nov. 20, 10:45 AM
- The usual suspects topped a list of the businesses with the most foot traffic in October, compiled by location analytics firm Placed.
- The top five chains were Wal-Mart (NYSE:WMT), McDonald's (NYSE:MCD), Subway, Starbucks (NASDAQ:SBUX), and Walgreens (NYSE:WAG).
- Significant movers over the last month include KMart (NASDAQ:SHLD) +9 spots, KFC (NYSE:YUM) +6 spots, Bed Bath & Beyond (NASDAQ:BBBY) -7 spots, and Costco (NASDAQ:COST) -6 spots.
Tue, Nov. 18, 3:24 PM
- The NPD Group reports restaurant traffic was flat in Q3.
- Spending was up 3% during the quarter as average tickets were up across segments.
- Traffic growth by category: Fast-casual +8%, Coffee/donut/bagel +5%, Mexican quick service +5%, hamburger quick service -3%, sandwich concepts -1%, Asian quick service -1%.
- Restaurant stocks: CAKE, CBRL, CMG, DNKN, 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.
Mon, Nov. 17, 1:53 PM
- Starbucks (SBUX -0.3%) is taking on some criticism from advocacy groups for being a member of the Grocery Manufacturers Association.
- The trade association recently sued in Vermont to stop legislation on labeling requirements for products with GMOs.
- Vermont is scheduled to be the first state with labeling rules on GMOs if it can navigate past the legal challenges.
- A Starbucks statement posted on its website says the company hasn't taken a position yet on GMO labeling.
Fri, Nov. 14, 4:52 AM
- After launching an investigation into Starbucks' (NASDAQ:SBUX) tax deal with the Netherlands five months ago, the European Commission has now publicly accused Dutch authorities of illegal state aid, allowing the the coffee chain to make payments on a lower corporate income tax base.
- It was not immediately clear how much Starbucks might have to pay in back taxes if there was a ruling against the Netherlands in the case. A final decision could take years.
- SBUX -0.5% premarket
- Previously: EU to probe corporate tax rates in Ireland, Luxembourg, Netherlands
Fri, Oct. 31, 9:56 AM
- Wedbush reiterates its Buy rating on Starbucks (SBUX -1.8%) on its view comps will accelerate in FY15 and beyond, powered by fresh mobile initiatives.
- UBS maintains a Buy rating on the company, saying the margin expansion in the Americas geographic segment was overlooked.
- Jefferies is a buyer on the dip as it see Starbucks committed to shifting resources into digital growth opportunities.
- If there's a common theme from Wall Street on Starbucks, it's that the company is a step ahead of brick-and-mortar peers in its acceptance of the new consumer paradigm.
- CEO Howard Schultz tipped off his view on brick-and-mortar decline last January during the firm's FQ1 earings call
Fri, Oct. 31, 7:45 AM
- Starbucks (NASDAQ:SBUX) CEO Howard Schultz disclosed a plan by the company to launch a food and beverage delivery service in certain markets next year.
- The exec called the Starbucks coffee-to-your-desk vision its version of "e-commerce on steroids."
- Pilot test runs are expected soon for the program in select cities during which Starbucks will test different consumer options.
- The delivery service will be part of the company's mobile app along with the much-hyped Mobile Order and Pay program.
- Earnings call transcript
- Previous on SBUX: FQ4 earnings, report highlights
Thu, Oct. 30, 4:22 PM
- FQ4 non-GAAP operating income of $857.3M up 28% Y/Y. Non-GAAP operating income per share of $0.74 up 23%.
- Global comp store sales up 5%. Non-GAAP operating margin of 20.5% up 280 basis points.
- New net stores of 503, bringing total to 21,366.
- Quarterly dividend is hiked 23% to $0.32 per share. Annualized yield of 1.66%.
- Fiscal 2015 targets: Revenue growth of 16-18% expected, including over $1B in incremental revenue from planned purchase of Starbucks Japan. Said purchase should be mildly dilutive to GAAP operating margin; non-GAAP operating margin expected to be flat to slightly up. Non-GAAP EPS expected in range of $3.08-$3.13 (vs. $2.66 in FY2014). Q1 non-GAAP EPS expected at $0.79-$0.81. New store opening should net 1,650.
- Conference call at 5 ET
- Previously: Starbucks EPS in-line, misses on revenue
- SBUX -4.8% AH
Thu, Oct. 30, 4:05 PM
Mon, Oct. 27, 8:25 AM
- Starbucks (NASDAQ:SBUX) expects to hear within a few weeks from the European Commission the results of an investigation into the company's tax policies on the continent.
- There have been allegations that Starbucks entered a tacit agreement with the Netherlands to lower a tax rate for a subsidiary located in Amsterdam.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.