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Starbucks Corporation (SBUX)

  • Sep. 22, 2014, 3:07 PM
    | 1 Comment
  • Sep. 13, 2014, 10:21 AM
    • The heavy trading on Starbucks (NASDAQ:SBUX) Friday has been tied to a large block trade run by Bank of America Merrill Lynch at a 1.3% discount to Thursday's closing price.
    • The seller of the shares hasn't been identified, although it wasn't an insider based on SEC filings.
    • Volume Friday on SBUX was at 7.31M shares vs. 3.06M daily average.
    • Shares of Starbucks have dipped below $76 for the first time since mid-June.
    • Starbucks the long and short of it: Starbucks Is Still Undervalued By 15%, Starbucks: Just How Much Upside Remains?.
  • Sep. 8, 2014, 9:05 AM
    • Starbucks (NASDAQ:SBUX) is expected to open more smaller-sized stores in non-traditional locations this year and next as it eyes new growth channels to help it capture even more of the on-the-go coffee market share.
    • What to watch: Though the company has seen outlets with drive-through windows out-perform other stores in the U.S., it's still experimenting with new concepts to increase traffic and reduce wait times.
    | 1 Comment
  • Sep. 5, 2014, 7:24 AM
    • In December, Starbucks (NASDAQ:SBUX) will open in Seattle a 15K square foot interactive Roastery and Tasting Room where customers will experience a "union of coffee, theater, and manufacturing" in a "retail environment devoted to beverage information."
    • Roasting more beans will allow Starbucks to distribute them to more outlets - from 800 to 1.5K globally - and the company will also look to open 100 cafes dedicated to those blends over the next five years.
    • Starbucks will also continue its experiment with hyperlocal, small-footprint stores. In total, Starbucks expects to add 1,550 net new stores in fiscal 2014 and 1.6K n fiscal 2015.
    • Press release
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  • Sep. 1, 2014, 3:10 PM
    • Though Starbucks (NASDAQ:SBUX) grew its U.S. comparable-store sales by an impressive 7% in FQ3 to top peers, and has swatted away challengers before, the company could see some new competition in 2H and into 2015.
    • Peet's Coffee & Tea plans to open 16 locations in Chicago, several of which sit in close proximity to Starbucks (SBUX) outlets.
    • Peet's is owned by coffee brand giant Joh. A. Benckiser which directly challenges Starbucks in Europe, but has been more conservative to take on the Seattle giant in the U.S.
    • The development in the Windy City follows a trend in NYC of more indie coffee shops opening aside Starbucks stores. A coffee app called Cups has also launched over the summer to some positive early results.
    • What to watch: The westward march of Dunkin' Brands (NASDAQ:DNKN) and the potential expansion of Tim Hortons (NYSE:THI) could also be factors in the U.S. coffee market, although many analysts think the power of the SBUX brand and the continued strong demand for coffee will leave multi-channel Starbucks in solid shape.
  • Aug. 28, 2014, 10:09 AM
    • The Tim Horton's (THI +0.9%) chain has a long and culturally-relevant history in Canada where its 3.6K locations still generate solid sales growth.
    • The story is different in the U.S. as the 860 TH units aren't spread out enough for the brand to be nationally-recognized and the company's hockey roots don't have the same significance to consumers.
    • Wendy's had difficulty gaining U.S. traction with the chain when it owned it, and since then Dunkin' Donuts (NASDAQ:DNKN) and Starbucks (NASDAQ:SBUX) have expanded rapidly, leaving analysts questioning what tricks Burger King Worldwide (BKW +3.5%) has up its sleeves.
  • Aug. 26, 2014, 3:57 PM
    • Brazil coffee production could end up down 18% Y/Y when the harvest ends next month. A severe drought in the nation has destroyed a large swath of crops.
    • The shortfall in the nation is included in a forecast from Citigroup that calls for a global coffee deficit which could last until 2016 and pressure prices.
    • Related stocks: GMCR, SBUX, JVA, SJM, KRFT, DNKN
    • Related ETFs: JO
    | 1 Comment
  • Aug. 25, 2014, 1:54 PM
    • Larger restaurant chain operators might be looking to buy their way into growth to follow the lead of Burger King Worldwide, speculates
    • A filtered ranking of the top 10 North American restaurant chains with the best growth of sales per share ended up with Chipotle (CMG) and Buffalo Wild Wings (BWLD +2.1%) at the top of the list.
    • Sorting the list by lowest forward P-E ratio leaves Texas Roadhouse (TXRH +1.9%), Cheesecake Factory (CAKE +1.4%), and (perhaps a surprise) Yum Brands (YUM +0.9%) looking like potential M&A targets.
  • Aug. 25, 2014, 8:03 AM
    • A strategic reason for Burger King Worldwide (NYSE:BKW) to snap up Tim Hortons (NYSE:THI) is the potential for the company to use its deep global development experience to help the coffee chain grow in new global markets
    • That plan could see Tim Hortons compete against Starbucks (NASDAQ:SBUX) in more regions, including a deeper foray into the U.S.
    • Shares of Tim Hortons (THI) are flying in premarket trading, up 17.6%.
    | 1 Comment
  • Aug. 21, 2014, 7:09 AM
    • Starbucks (NASDAQ:SBUX) will test a new concept at three colleges as it eyes how to increase sales to the younger demographic.
    • The company will use mobile trucks at Arizona State, James Madison University, and Coastal Carolina University to sell where students congregate at different times of the day.
    • Currently, Starbucks has outlets at only 300 of the 4.7K college campuses in the U.S.
  • Aug. 18, 2014, 9:31 AM
    • Starbucks (NASDAQ:SBUX) will introduce a seasonal favorite earlier than ever this year when select customers get a crack at a Pumpkin Spice Latte in August.
    • The company is using an online twitter scavenger hunt to drum up interest in the product.
    • What to watch: The PSL from Starbucks has been an impressive October-December comp driver. Can it deliver the same impact in late summer?
  • Aug. 14, 2014, 2:15 PM
    • Starbucks (SBUX -1.1%) says it will enact changes to the scheduling of its workers.
    • The development appears to be a reaction to a New York Times article about the difficulty of a single mother working as barista  to manage the company's automated scheduler.
    • More human interaction is promised by the coffee giant.
  • Aug. 4, 2014, 2:19 PM
    • Strong local demand from coffee-producing nations Brazil, Vietnam, and Colombia could help keep coffee prices elevated this year.
    • Overall coffee demand is expected to hit a record this year due in part to rising incomes.
    • Though the upsurge in demand is primarily for the lower-priced bean varities, there is also a slow global shift in mix toward the higher-priced Arabica beans under way.
    • Starbucks (SBUX +0.6%), Dunkin Brands (DNKN +0.3%), Kraft Foods Group (KRFT -0.3%), and J.M. Smucker (SJM +0.1%) have all increased prices on coffee this year.
    • Related ETF: JO
  • Jul. 29, 2014, 8:16 AM
    | 1 Comment
  • Jul. 25, 2014, 2:42 PM
    • Starbucks (SBUX -2%) is finally seeing real progress in China after slowly building a presence for 16 years, CEO Howard Schultz says.
    • "The real breakthrough for us is our core customers today are Chinese, and we are beginning to break through on the morning ritual," the CEO. tells CNBC.
    • Schultz does not comment on the food safety incident involving McDonald's and Yum, but says "food safety is the no. 1 issue for any company doing business in China... and we believe that we've done it the right way."
    • Seeking to deflect any concern over SBUX's warning that FY 2015 EPS growth may be near the bottom of the long-term goal of 15%-20% annual increases, Schultz says "this is a [global] growth story... in our business, to have 7% [growth in] comps on a base of 1,600 stores is really unparalleled."
    • Earlier: Sell-side weighs in on Starbucks.
    | Comment!
  • Jul. 25, 2014, 11:50 AM
    • "With a top and bottom line beat in a difficult consumer landscape, FQ3 lived up to the lofty expectations," says UBS's Keith Siegner (who has a Buy and $90 PT). Nevertheless. some pressure on the all-time high shares could be warranted amid management commentary (CC transcript) that FY15 earnings growth could be at the lower end of the 15-20% range. "We're not phased," he concludes, and would buy on any weakness.
    • Also noting the conservative guidance, Barclays' Jeffrey Bernstein (Equal Weight and $81 PT), says the stock - at 25x forward earnings - is fairly valued.
    • "Strong momentum in the business continues to make Starbucks (SBUX -2.3%) a long-term holding," says JPMorgan's John Ivankoe (Overweight and $85 PT). "While we believe some consolidation may be warranted to more aggressively purchase shares, we continue to advocate long-term investment based on uncommonly high cash flow/balance sheet flexibility, earnings power and visibility over the next few years."
    • Previously: Starbucks edges lower following earnings beat
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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