Thu, Jan. 22, 4:14 PM
- Starbucks (NASDAQ:SBUX) reports global comparable store sales increased 5% in FQ1 vs. 4.9% expected and 5.0% last quarter and in the year-ago period.
- Traffic was 2% higher during the quarter.
- Comp growth by region: Americas and U.S. +5%; EMEA +4%; China/Asia Pacific +8%.
- Operating margin improved -130 bps Q/Q and -10 bps Y/Y to 19.1%. The decline was due in a large part to a shift in ownership in Japan.
- My Starbucks Rewards member adds +10% to over 9M members.
- The company added 512 net new stores during the quarter.
- FY15 EPS guidance is reaffirmed at revenue growth of 16%-18% and a mid single-digit comp.
- FY15 EPS of $3.09-$3.13 expected vs. $3.13 consensus.
- SBUX +3.17% AH
Thu, Jan. 22, 4:04 PM
Wed, Jan. 21, 5:35 PM
Sat, Jan. 17, 12:45 PM
- Milk prices are in a downward trend with an excess of supply on the international market.
- The supply is so far beyond expectations that some U.S. cooperatives have directed farms to pour out part of their inventory.
- A reduced level of milk imports from China and Russia has been a factor in the market.
- Food companies are seeing a quicker benefit from the milk price decline than consumers, although analysts anticipate lower prices at grocery and C-stores stores in 2015.
- Milk price data (consumers) vs. milk futures chart
- Related stocks: DF, WWAV, SJM, DF, OTCPK:NSRGY, LWAY, DNKN, MCD, SBUX, GIS, HSY, MJN, QSR, KO, GIS,
- Related ETFs: MOO.
Fri, Jan. 9, 1:38 PM
- Restaurant same-store sales in Q4 rose at the fastest pace in six years, according to Black Box Intelligence.
- Same-store sales were 3.1% during December to accelerate past the 1.6% rise seen in November.
- If the slump in Q1 is backed out, restaurant comps for the year were up 1.3% after being negative in 2013.
- BBI notes lower fuel costs for consumers is a major factor in the return to growth.
- Earlier this week: Sonic Dec. comps +8.5%.
- Restaurant stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, BOBE, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, MFRD, ZOES, MCD, YUM.
Fri, Jan. 9, 9:35 AM
- Reports indicate the departure of Starbucks (SBUX -1.3%) COO Troy Alstead is due to a personal issue which has been under discussion for some time.
- The Puget Sound Business Journal suggests it's "unlikely" Alstead will return to the company.
- Alstead nearly left the company in 2008 before CEO Howard Schultz talked him into staying.
- Several analysts have tipped that the dip in shares makes for a good entry point on Starbucks, although SA contributor Howard Penney has a detailed look on the company which could give some investors pause.
Fri, Jan. 9, 8:35 AM
- The House passed a bill to redefine a full-time worker under the Affordable Care Act to 40 hours a week from 30 hours.
- The legislation could impact millions of workers as companies adjust hours and employee policies around the issue.
- The measure was passed by a vote total of 252-172.
- Senate Majority Leader Mitch McConnell has indicated the bill will see a vote in his chamber.
- The White House has threatened to veto the bill on its view it will reduce the number of workers covered by healthcare.
- Most industry groups within the restaurant and food industry have issued support for the legislation.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, CASY, IMKTA, SFS, KR, WMK, SVU, WFM, SWY, VLGEA, TFM,NGVC, BIG, ZU, TUES, WMT, PSMT, COST, TGT, DLTR, BURL, FDO, DG, FRED, WBA, RAD, CVS, HABT, NDLS, PBPB.
Thu, Jan. 8, 4:28 PM
- Troy Alstead, Starbucks' (NASDAQ:SBUX) COO since last February and its CFO for five years prior to that, is "taking an extended unpaid leave from the company." March 1 will be Alstead's "last day in his current role." (PR)
- Starbucks will give more details on its "transition plans" during its Jan. 22 FQ1 earnings CC.
- SBUX -0.6% AH.
Thu, Jan. 8, 6:12 AM
Mon, Jan. 5, 9:16 AM
Dec. 31, 2014, 11:33 AM
- Consumer spending: More consumers say they are willing to trade-up to a traditional dining spot from fast-casual than trade-down to a fast-food option, according to Technomic. The revelation takes some of the steam away from the argument that lower gas prices will boost traffic at major fast-food chains.
- IPOs: Profitable 2014 launches by Zoes Kitchen (ZOES -0.2%) and Habit Burger (HABT -0.5%) could inspire other private chains to go public. Shake Stack (Pending:SHAK) got an early jump by filing this week for an IPO.
- Labor costs: Analysts see a risk to profitability in the sector from the wave of minimum wage laws set to go into effect over the next year. Some analysts think President Obama will push for federal legislation with the issue hard for election-minded Republicans to oppose strongly.
- Fast-casual pizza: A breakout of a fast-casual pizza concept is widely expected in 2015 (candidates).
- Chipotle: Another +30% run for the Mexican chain off of sizzling comps leaves it with limited upside, according to some analysts. Chipotle (CMG +0.8%) execs don't agree, noting during the Q3 earnings call (transcript) that enormous upside exists to maximize peak transactions per hour (350-400). Beef, cheese, and avocado pricing will be key for CMG next year as well.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
Dec. 24, 2014, 9:57 AM
- The restaurant industry will run up against soft comps in January and February due to last year's winter storms which were much worse than normal.
- Restaurant same-store sales will rise just over 2% for the full year, according to an estimate from the co-founder of the NRN-MillerPulse tracking survey.
- Technomic sees a 3% growth in restaurant comps in 2015, while Fitch Ratings has an outlook for 2% to 3%.
- On the cost side, commodity prices for chicken, cheese, wheat, and pork are all expected to moderate. However, beef prices are seen increasing 4% to 8%.
- Minimum wage increases in many state kick in on January 1 which could impact the bottom line for many chains.
- Fresh IPOs, concept acquisitions, and leveraged buyouts care expected to be major themes in 2015, according to analysts.
- CEOs on the hot seat include Don Thompson at McDonald's (NYSE:MCD) and Nigel Travis at Dunkin' Brands (NASDAQ:DNKN).
- Restaurant stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, BOBE, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR.
Dec. 23, 2014, 7:20 AM
Dec. 17, 2014, 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.
Dec. 8, 2014, 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)
Dec. 5, 2014, 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.
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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