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Starbucks Corporation (SBUX)

  • Mon, Mar. 23, 2:35 AM
    • After kicking off a race relations campaign last week, Starbucks (NASDAQ:SBUX) CEO Howard Schultz told employees on Sunday they will no longer be encouraged to write "Race Together" on drinks cups, but the company's efforts are "far from over."
    • The move was met with skepticism on social media, with many complaining the company was overstepping it boundaries with a campaign on sensitive cultural topics that had no place in the coffee shop's lines.
  • Thu, Mar. 19, 10:38 AM
    • Starbucks (SBUX +1.6%) spikes higher on strong volume a day after the company's annual meeting gives investors plenty to chew on.
    • An announcement on a delivery service and the commitment to bring baristas into the conversation on race are grabbing the most notice, although it's the developments in China where some analysts see the most upside for the company.
    • The decision to partner with Tingyi Holding in China solves a lot of distribution headaches for Starbucks, notes China Market Research Group.
    • It also gives Starbucks a way to boost its brand in smaller cities.
    • Technically-leaning traders think the 2-for-1 split is the rallying point for investors.
    • Previously: Starbucks announces delivery service (Mar. 18 2015)
    • Previously: Starbucks to split 2-for-1 (Mar. 18 2015)
    • Previously: Starbucks on China (Mar. 18 2015)
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  • Wed, Mar. 18, 3:42 PM
    • Starbucks (NASDAQ:SBUX) didn't forget about China at today's eventful annual meeting of shareholders.
    • Execs noted that China is the coffee giant's fastest-growing market and say the company plans to have 3.4K stores open in the nation within five years.
    • Shanghai already has more Starbucks outlets than any other city in the world.
    • The company says it signed a deal with Tingyi Holdings to produce and distribute the company's ready-to-drink products in China.
    • Starbucks plans to convert tea drinks in China to the Teavana brand in 2016.
    • Previous from the annual meeting: Starbucks announces delivery serviceStarbucks to split 2-for-1
    • Shares of SBUX staged a rally during the event to carve out a 1.8% gain.
    | 1 Comment
  • Wed, Mar. 18, 1:27 PM
  • Wed, Mar. 18, 12:47 PM
    • Starbucks (SBUX -0.6%) announces a new delivery service just in front of its annual meeting today in Seattle.
    • Areas of New York City and Seattle will be the first to have the service.
    • The company's new app-based ordering system being rolled out in the Pacific Northwest is expected to be available nationally by the end of the year.
    • An initiative to promote positive conversations on race is also part of the company's platform today.
    • The meeting is just getting underway so more jolts may follow.
    • Starbucks Annual Meeting webcast
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  • Tue, Mar. 10, 3:33 PM
    • Starbucks (SBUX -0.8%) says it will expand its Mobile Order & Pay program to 650 locations spread across Washington, Idaho, Oregon, and Alaska after a successful test run in Portland.
    • The company says the national roll-out will continue throughout the year.
    • The edge Starbucks has in digital initiatives has kept it one of the top restaurant stock picks of some analysts.
    • Previously: Diving into restaurant stocks (March 7)
    | Comment!
  • Mon, Mar. 9, 8:28 AM
    • McDonald's (NYSE:MCD) appears to have lost market share during February in the U.S.
    • Black Box Intelligence estimates that comparable-store sales in the restaurant industry rose 2.1% in February vs. the 4% decline reported earlier by McDonald's for the month.
    • The deceleration across the industry was strongly influenced by a 5.8% drop in New England due to a harsh winter month, while McDonald's cites broader promotional pressure.
    • Within the burger sector, Sonic reported a sizzling 11.5% comp for its FQ2 which included all of February and didn't mention any promotional headaches.
    • Retail analysts think Sonic (NASDAQ:SONC) and Jack in the Box (NASDAQ:JACK) have converted some loyal McDonald's customers - while on a smaller scale the higher-end burger concepts at Five Guys, Habit Restaurants (NASDAQ:HABT), In-N-Out Burger, and even Shake Shack (NYSE:SHAK) have had an influence.
    • An even deeper dive into breakfast traffic has concluded Starbucks (NASDAQ:SBUX) has taken some coffee-on-the-go share.
    • Previously: McDonald's misses Feb. comp mark as U.S. disappoints
    • MCD -1.21% premarket to $95.95 after shares floated over the $100 level last week.
  • Sat, Mar. 7, 10:13 AM
    • A powerhouse quarter of improved comps and widened margins is in the books for the restaurant industry as investors look forward to see if the trend extends.
    • The industry is in a growth phase with eating and drinking establishments adding 58.7K jobs in February on a seasonally adjusted basis to mark the biggest monthly gain since December of 2012.
    • The early read on Q1 traffic is favorable (ex-weather), although chains could see some wage inflation pressure and innovation outlays with differentiated concepts popping up at Habit Restaurants (NASDAQ:HABT), Zoe's Kitchen (NYSE:ZOES), Shake Shack (NYSE:SHAK), and a host of others.
    • Major digital initiatives at chains such as Panera Bread (NASDAQ:PNRA) and Starbucks (NASDAQ:SBUX) also have the potential to be disruptive.
    • A few screens to pick through the restaurant stock menu are listed below.
    • Lowest forward P/E ratio: McDonald's (NYSE:MCD), Ruth's Hospitality (NASDAQ:RUTH), and Cracker Barrel (NASDAQ:CBRL).
    • Lowest price/free cash flow ratio: Ruby Tuesday (NYSE:RT), Nathan's (NASDAQ:NATH), Jack in the Box (NASDAQ:JACK).
    • Dividend yield +3%: DineEquity (NYSE:DIN), Darden Restaurants (NYSE:DRI), McDonald's, and Arcos Dorados (NYSE:ARCO).
    • Top YTD performers: Jack in the Box (JACK), Wendy's (NASDAQ:WEN), Sonic (NASDAQ:SONC), El Pollo LoCo (NASDAQ:LOCO).
    • PEG ratio below 2.00: Chuy's Holdings (NASDAQ:CHUY), Ruth's Hospitality, Krispy Kreme Donuts (NYSE:KKD), Cheesecake Factory (NASDAQ:CAKE), Brinker International (NYSE:EAT), Denny's (NASDAQ:DENN), Buffalo Wild Wings (NASDAQ:BWLD).
    • Short ratio below 2%: Yum Brands (NYSE:YUM), Jack in the Box (JACK), Chipotle (NYSE:CMG), DineEquity, Bloomin' Brands (NASDAQ:BLMN), Denny's (DENN), McDonald's (MCD).
    • Previously: Restaurant stocks continue hot streak (Feb. 24)
  • Mon, Mar. 2, 2:34 PM
    • Coffee prices are in retreat as extended rain in Brazil and increased production capacity has helped to soothe the market and push up forecasts on output.
    • Data from the U.S. Commodity Futures Trading Commission indicates a sharp drop in bullish bets on coffee as experts now ease off some previous concerns on supply vs. demand.
    • Arabica prices are still higher than where they were a year ago.
    • There could be a lag factor for many companies to see a benefit from lower coffee commodity costs. Starbucks tipped off during its FQ1 earnings call (transcript) it has 94% of its 2015 coffee needs already priced.
    • Arabica coffee price chart
    • Related stocks: GMCR, SBUX, JVA, SJM, KRFT, DNKN
    • Related ETFs: JO
    | 1 Comment
  • Mon, Mar. 2, 10:26 AM
    • Starbucks (SBUX +0.7%) introduces the Starbucks Reserve subscription service.
    • Subscribers receive a new original coffee every month within days of the small-lot coffee being roasted.
    • The company is charging $24 per month for the service.
    • A single purchase of the Reserve coffee of the current month is also available.
    • What to watch: Starbucks is attempting to stay ahead of the burgeoning craft coffee market after seeing the disruption craft played in the beer industry.
  • Thu, Feb. 26, 7:18 PM
    • Starbucks (NASDAQ:SBUX) is the highest quality large cap story in the restaurant sector, according to a bullish note from Jefferies.
    • The revival in U.S. restaurant traffic sets up well for Starbucks which is pushing new growth channels in food and tea.
    • The investment firm took its price target on SBUX up to $108 on confidence EPS growth can stay comfortably at a double-digit rate.
    • Piper and Wedbush are also in the Starbucks $100 PT club.
    | Comment!
  • Thu, Feb. 26, 10:42 AM
    • Shares of J.M. Smucker (SJM +1%) and Dunkin Brands' (DNKN +2.9%) are both higher after the two companies sign a deal to broaden distribution for Dunkin' Donuts K-cups.
    • J.M. Smucker is handling distribution to grocery stores and club chains, while Keurig Green Mountain (GMCR -0.1%) will cover office supply stores and specialty stores.
    • Perhaps the most important aspect of the new distribution deal is that Dunkin' K-Cup packs will now be sold online.
    • The K-cup shakeup isn't expected by most analysts to have a major impact on Starbucks (SBUX +0.2%) which is also a Keurig partner. Smaller coffee brands could suffer though.
  • Wed, Feb. 18, 4:02 PM
    • The International Coffee Organization expects global coffee demand to rise 25% by 2021.
    • Expectations for rising demand in China, India, and Latin America is partially behind the strong forecast.
    • The coffee market is under pressure currently from tight supply due to crop difficulties in Brazil.
    • A sharp drop in the real has counterbalanced the supply shortage to a degree.
    • Related stocks: GMCR, SBUX, JVA, SJM, KRFT, DNKN
    • Related ETFs: JO
  • Wed, Feb. 18, 2:09 PM
    • JPMorgan sees a bounce in retail sales over the next two quarters as stronger employment rates and lower gas prices underpin demand.
    • A screen by JP dug out the 12 stocks which show the largest correlation with headline retail sales growth.
    • A dozen to watch in retail: GM, F, COH, SBUX, BWA, DLPH, VFC, IPG, LB, OMC, TSCO, HOG
  • Tue, Feb. 17, 2:26 PM
    • Starbucks (SBUX +0.5%) announces a subscription service for its high-end limited reserve batches of coffee.
    • An annual subscription will include 12 shipments of 8.8-ounce bags of reserve coffee sent within 3 to 5 days of roasting for a cost of $288.
  • Sat, Feb. 14, 10:13 AM
    • Craft soda is starting to become a trend to watch closely, according to industry insiders.
    • Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
    • The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
    • The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
    • Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
    • What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
    • Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
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Company Description
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.
Sector: Services
Country: United States