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.
Dec. 4, 2014, 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
Dec. 1, 2014, 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.
Nov. 29, 2014, 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.
Nov. 22, 2014, 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.
Nov. 20, 2014, 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.
Nov. 18, 2014, 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.
Nov. 17, 2014, 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.
Nov. 14, 2014, 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
Oct. 31, 2014, 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
Oct. 31, 2014, 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
Oct. 30, 2014, 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
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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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