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
Oct. 30, 2014, 4:05 PM
Oct. 27, 2014, 8:25 AM
- Starbucks (NASDAQ:SBUX) expects to hear within a few weeks from the European Commission the results of an investigation into the company's tax policies on the continent.
- There have been allegations that Starbucks entered a tacit agreement with the Netherlands to lower a tax rate for a subsidiary located in Amsterdam.
Oct. 22, 2014, 12:01 PM
- Food prices rose in September, according to data from the Bureau of Labor Statistics.
- The category, which gets stripped out of the core CPI number, rose 0.3% M/M and 3.0% Y/Y.
- Prices for food consumed at home increased 3.2% Y/Y during the month.
- Meat prices were 13% higher, driven up by a 17.8% spike in beef prices.
- Food input costs are a significant concern in the restaurant sector.
- 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.
- Related ETFs: DBA, COW, MOO, PAGG.
Oct. 20, 2014, 2:58 PM
- Starbucks (SBUX +1.2%) plans to test a new mobile app feature that allows customers to pre-order drinks before entering a store.
- The company says iPhone customers at 150 outlets in the Portland region will get first crack at the app later this year.
- If a few operational timing kinks are worked out, the app could boost traffic at Starbucks stores as line lengths are shortened.
Oct. 7, 2014, 8:37 AM
- Shares of Keurig Green Mountain (NASDAQ:GMCR) are higher in early action despite a soft read from SodaStream (NASDAQ:SODA) on demand for home beverage systems.
- A strong initiation from Goldman Sachs on the stock is helping to offset any concerns on the category.
- Coca-Cola (NYSE:KO) has its eyes on the developments with its 10-year Keurig Cold partnership kicking off in 2015.
- If it's true that PepsiCo (NYSE:PEP) and Starbucks (NASDAQ:SBUX) have interest in SodaStream - there's some number-crunching going inside the C-suites there.
- GMCR +2.1% premarket, SODA -17.5%.
Oct. 2, 2014, 1:10 PM
- Arabica coffee futures reached a five-month high as a prolonged drought in Brazil now appears likely to impact next year's crop as well as this year's.
- Coffee watcher ICO estimates a 10M production bag deficit could result due to the weak crop amid an environment of rising global demand.
- Arabica coffee chart
- Related stocks: GMCR, SBUX, JVA, SJM, KRFT, DNKN
- Related ETFs: JO
Sep. 29, 2014, 2:58 AM
- Apple (NASDAQ:AAPL) will face accusations this week from the European Commission, as the preliminary findings over its tax affairs in Ireland are made public.
- European regulators will accuse Apple of benefiting from illicit state aid in Ireland for more than two decades, which could leave the company with a record fine of as much as several billions of euros, FT reports.
- The probe is part of a formal investigation into European corporate tax codes, which is also investigating Fiat (OTCPK:FIATY) and Starbucks (NASDAQ:SBUX).
Sep. 24, 2014, 1:13 PM
- NPD Group reports the U.S. small home appliance saw sales rise 4% to $19.6B for the year ending June 2014.
- Perhaps a surprise, growth in the rice cooker and electric kettles categories were stronger than what was seen for single-serve brewing systems and countertop blenders.
- Related stocks: GMCR, SBUX, WHR, CONN, HGG, HD, NC, SWK, SODA,
Sep. 24, 2014, 10:41 AM
- Shares of Starbucks (SBUX +1.1%) trade higher after the company buys out its JV partner in Japan.
- Analysts think full ownership of the business will free up Starbucks to create new distribution channels in the nation and potentially increase the store count as well.
- Starbucks Coffee Japan (OTC:STBJF) is up 3.2% on the day.
Sep. 23, 2014, 5:28 PM
- Starbucks (NASDAQ:SBUX) is acquiring the 60.5% of Starbucks Coffee Japan (OTC:STBJF) it doesn't own from JV partner Sazaby League in a 2-stage deal valued at ¥99.5B ($913.5M). The JV was formed in 1995, and now runs over 1K stores.
- Through a tender offer, Starbucks will pay ¥965/share for Sazaby's 39.5% stake. Once the deal has closed, a tender will be launched for the 21% stake held by public shareholders/option holders at a price of ¥1,465/share (a 4.7% premium to Monday's close). The deals are expected to be completed during 1H15.
- Starbucks expects the purchase to be slightly accretive to FY15 (ends Sep. '15) results on an adjusted basis. The company asserts the deal "positions Starbucks to accelerate growth across multiple channels in Japan, including the potential introduction of new concepts, such as Teavana."
Sep. 23, 2014, 1:41 PM
- Traffic to quick-service restaurants was flat for the year ending on June 30, according to data compiled by the NPD Group.
- Establishments with an average check price of $10-$20 saw more traffic growth than sub-$10 outlets.
- Fine dining restaurants saw a 3% increase in visits over the period.
- The research firm says "cultural and economic phenomenon" have created a shift in consumer dining habits that may be permanent.
- 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.
Sep. 22, 2014, 3:07 PM
- Starbucks (SBUX -2%) is trying out a new latte drink designed to taste like a dark Irish beer.
- Dark Barrel Latte, which has no alcohol, is being tested in select stores in Ohio and Florida.
- Screenshot of leaked Starbucks memo on the new concoction
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?.
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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