Apr. 30, 2014, 2:55 PM
- Starbucks (SBUX) rolled out Oprah tea products this week at 12K of its branded stores in the U.S. as well as the 300 Teavana stores it has opened. Early channel checks indicating strong interest from consumers.
- Tea is the next frontier for Starbucks and some analysts think the Oprah phenomenon gives the initiative a fighting chance.
- Sales of tea in the U.S. grew from $1.84B in 1990 to $10.41B in 2013, but proponents think the market still has huge upside - especially in the premium segment.
- A possible catch in the plan can be summed up in one word. Caffeine. If consumers find tea a contemplative drink, instead of a daily craving they need, Starbucks could see slower demand for tea drinks and products than forecast.
Apr. 29, 2014, 10:35 AM
- Starbucks (SBUX -0.6%) launches the Teavana Oprah Chai Tea brand today in stores in North America.
- The company says Oprah Winfrey personally developed the multiple Chai tea flavors.
- The big picture: Starbucks spent $620M on a big bet that it could develop tea-only stores in the U.S. and bring in new tea adherents. During the firm's Q1 conference call (transcript) Teavana was a big topic of discussion, although execs were light on details on sales. The launch of the Oprah brand and Teavana stores should give investors more insight in the near future on the demand trends for tea in North America.
Apr. 28, 2014, 2:51 PM
- The restaurant industry is watching with interest a late push by waiters and bartenders in Seattle to drum up support against a proposed $15-per-hour minimum wage law in the state.
- The group fears a minimum wage law hike will significantly lower the level of tips servers receive from customers.
- The big picture: The potential for minimum wage increases - either on a federal level or state by state - has been a hot topic in dissecting restaurant stocks. Some analysts see a significant bottom line pinch as companies have a difficult time passing on the extra costs to consumers in the form of higher prices.
- Related 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.
Apr. 28, 2014, 1:03 PM
- Single-serve brewing system sales rose 8% last year to $930M, although some key markets showed signs of saturation.
- Retail sales of single-serve brewing systems were flat in New York City, while they actually fell off in Washington, DC (-2%) and Boston (-3%).
- 19% of pod-based machine sales were online during the period.
- Related stocks: GMCR, SBUX
Apr. 28, 2014, 7:40 AM
- Coffee prices could keep rising as fresh estimates on Brazil's coffee harvest point to more weakness.
- Marex Spectrom expects a harvest in the 2014-2015 season of 49M bags vs. a prior forecast of 55M bags and 53.3M bags a year ago.
- Analysts say the Arabica supply situation is deteriorating due to harsh weather in Brazil
- Related stocks: SBUX, GMCR, JVA
- Related ETFs: JO
Apr. 25, 2014, 10:13 AM
- "The test is over," says Starbucks (SBUX +0.3%) CEO Howard Schultz, telling CNBC the company is plowing ahead with offering alcohol in its stores.
- In other news from the conversation:
- Fizzio is a key focus of his (SODA -2.9% in early action).
- While raw coffee prices are up 80%, they're just 10% of Starbucks' operating cost, and "If push came to shove, we have pricing power."
- Schultz gets a chuckle out of competitors who blame the severe winter weather for weak results.
- Last night's earnings coverage
Apr. 24, 2014, 4:24 PM
- Starbucks (SBUX) reports global comparable store sales increased 6% in FQ2 vs. 5% in FQ1 and 6% for the year-ago period.
- Comp growth was fairly consistent across regions: Americas and U.S. +6%; EMEA +6%; China/Asia Pacific +7%.
- Operating margin improved 130 bps to 16.6% on sales leverage gains and lower commodity costs (coffee was hedged).
- The company added 335 net new stores during the quarter.
- FY14 EPS guidance is increased to $2.62-$2.68.
- SBUX +0.9% AH
Apr. 24, 2014, 4:07 PM
Apr. 23, 2014, 12:26 PM
- Starbucks (SBUX -0.9%) is in advanced talks to purchase 10% of SodaStream (SODA +11.5%), according to a report from Globes.
- The Israeli publication indicates the deal price could be at a 30% premium over SodaStream's market price.
- The spotlight turned to SodaStream after Coca-Cola and Keurig Green Mountain struck what could be a disruptive deal earlier this year.
Apr. 21, 2014, 10:28 AM
- Citi analysts post their list of 50 top Buy-rated stocks with a market cap of at least $3B, at least a top-three market share in a third of their businesses, and a global reach as measured by significant revenue outside of their home market; Business Insider highlights 20 according to estimated total return.
- Gilead Sciences (GILD) tops the list with a 45.4% ETR, and Citi believes GILD will generate a significant amount of cash and will buy back stock, engage in product and company acquisitions to grow its pipeline, and potentially start providing a dividend in 2-3 years.
- Rounding out the top 20: FB, BX, V, CERN, FLT, BA, MA, LVS, SBUX, MJN, GOOG, EBAY, BIIB, AXP, HOG, VFC, PII, VMC, FTI.
Apr. 16, 2014, 7:15 AM
Apr. 16, 2014, 6:46 AM
- Shares of SodaStream (SODA) are on watch with a report out indicating the company is in talks to sell a stake to a large soft-drink concern.
- Israeli business journal Calcalist says SodaStream is considering selling a stake of 10% to 16%.
- The usual suspects - Starbucks (SBUX), PepsiCo (PEP), and Dr. Pepper Snapple (DPS) - are being run out as the potential buyer.
Apr. 7, 2014, 10:01 AM
- Prices for Arabica coffee move higher as concerns about dry weather in Brazil mount.
- Brazil's National Coffee Council lowered its forecast for this season's harvest to 40.1M-43.3M bags from 44M bags.
- It's not sure bet that Starbucks (SBUX -1.3%) will pass on any sustained price increase to consumers this year. The company reportedly lowered prices at some of its stores last week in a move that might have been a response to McDonald's free coffee week. CEO Howard Schultz has also been vocal about holding off on price increases.
- Related ETF: JO
Apr. 4, 2014, 9:08 AM
- Burger King (BKW) isn't sitting out the all-out war for fast-food breakfast traffic, observes Hedgeye's Howard Penney.
- As Taco Bell (YUM) aggressively markets its new breakfast menu and McDonald's (MCD) promotes a free coffee week, Burger King has numerous breakfast items on sale at the $1 price point.
- Restaurant analysts see the three chains fighting for the same early on-the-go crowd, while Starbucks (SBUX) maintains its market share.
Apr. 1, 2014, 9:14 AM
- Starbucks (SBUX) is responding to customer feedback on its new La Boulange-inspired menu by bringing back some favorites.
- The company will start selling banana loaf, pumpkin loaf, and iced-lemon pastries to get back to the basics which helped take its customer loyalty factor sky-high..
- The breakfast fare from La Boulange leans to the healthier side, but has drawn some criticism for its smaller portions.
- What to watch: Starbucks execs have already called the La Boulange rollout complex. Reverting back to mixing in the old menu items with the new just adds another layer of complication for the company.
Mar. 31, 2014, 1:40 PM
- The National Restaurant Association's Restaurant Performance Index stood above 100 for the 12th straight month after ending February at 100.5.
- The index dropped 20 bps from the level seen in January. On a year-over-year comparison, the index was 0.6% higher.
- "Looking forward, operators are generally optimistic about sales gains in the months ahead, although they aren’t as bullish about the overall economy," notes the industry association.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, BKW, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
SBUX vs. ETF Alternatives
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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