Apr. 16, 2014, 7:15 AM
Apr. 16, 2014, 6:46 AM
- Shares of SodaStream (SODA) are on watch with a report out indicating the company is in talks to sell a stake to a large soft-drink concern.
- Israeli business journal Calcalist says SodaStream is considering selling a stake of 10% to 16%.
- The usual suspects - Starbucks (SBUX), PepsiCo (PEP), and Dr. Pepper Snapple (DPS) - are being run out as the potential buyer.
Apr. 7, 2014, 10:01 AM
- Prices for Arabica coffee move higher as concerns about dry weather in Brazil mount.
- Brazil's National Coffee Council lowered its forecast for this season's harvest to 40.1M-43.3M bags from 44M bags.
- It's not sure bet that Starbucks (SBUX -1.3%) will pass on any sustained price increase to consumers this year. The company reportedly lowered prices at some of its stores last week in a move that might have been a response to McDonald's free coffee week. CEO Howard Schultz has also been vocal about holding off on price increases.
- Related ETF: JO
Apr. 4, 2014, 9:08 AM
- Burger King (BKW) isn't sitting out the all-out war for fast-food breakfast traffic, observes Hedgeye's Howard Penney.
- As Taco Bell (YUM) aggressively markets its new breakfast menu and McDonald's (MCD) promotes a free coffee week, Burger King has numerous breakfast items on sale at the $1 price point.
- Restaurant analysts see the three chains fighting for the same early on-the-go crowd, while Starbucks (SBUX) maintains its market share.
Apr. 1, 2014, 9:14 AM
- Starbucks (SBUX) is responding to customer feedback on its new La Boulange-inspired menu by bringing back some favorites.
- The company will start selling banana loaf, pumpkin loaf, and iced-lemon pastries to get back to the basics which helped take its customer loyalty factor sky-high..
- The breakfast fare from La Boulange leans to the healthier side, but has drawn some criticism for its smaller portions.
- What to watch: Starbucks execs have already called the La Boulange rollout complex. Reverting back to mixing in the old menu items with the new just adds another layer of complication for the company.
Mar. 31, 2014, 1:40 PM
- The National Restaurant Association's Restaurant Performance Index stood above 100 for the 12th straight month after ending February at 100.5.
- The index dropped 20 bps from the level seen in January. On a year-over-year comparison, the index was 0.6% higher.
- "Looking forward, operators are generally optimistic about sales gains in the months ahead, although they aren’t as bullish about the overall economy," notes the industry association.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, BKW, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
Mar. 25, 2014, 1:05 PM
- Coffee futures show increasing volatility as strong rains in Brazil bring relief to the drought-stricken region.
- A measure of volatility on the 60-day Arabica futures contract hit its highest level since 2000 as prices eased back to $1.743 a pound earlier today.
- Citi forecasts prices will fall in range of $1.51 to $2.25 over the next few quarters as the impact of the drought lingers.
- Related stocks: SBUX, GMCR, JVA, DNKN
- Related ETFs: JO
Mar. 25, 2014, 8:48 AM
- Starbucks (SBUX) says it has a new coffee source off the slopes of Mauna Loa in the Kona region of Hawaii.
- The company calls the coffee from the region an "extremely high quality" blend with meticulous care part of the process.
- What to watch: The development is interesting because although Starbucks tipped off recently it wouldn't raise prices anytime soon, it's possible that it could sell new premium blends to improve margins via its mix.
Mar. 20, 2014, 8:33 AM
- Starbucks (SBUX) plans to sell alcohol in the evening at thousands of its stores.
- The revelation came from COO Troy Alstead during an interview with Bloomberg.
- The company says testing of the concept at select stores has gone very well.
- Starbucks outlets located near movie theaters, restaurants, and areas with an active nightlife are more likely to be tapped for alcohol sales.
Mar. 19, 2014, 1:56 PM
- Starbucks (SBUX +2.1%) is still in the "early stages" of its growth and development, according to CEO Howard Schultz.
- Mobile payment snow account for 14% of all in-store transactions in the U.S. to mark a rapid-fire from the 10% it disclosed just 8 months ago. Schultz says to look for an expansion of the company's mobile payments business.
- Tea will be a focus this year as Starbucks opens 20 new Teavana stores and dabbles with its Teavana Tea Bar concept.
- Though the coffee chain has no plans to raise prices, it will look to improve its average customer transaction amount which is already north of $5.
- Starbucks Annual Meeting webcast
Mar. 19, 2014, 9:02 AM
- Consumer product stocks are well-represented on a list of the top growth stocks at reasonable prices from UBS.
- The list from the investment firm is based on companies which show quality metrics, solid earnings growth potential, and reasonable valuation. 24/7 Wall St. took it one step further by filtering the UBS list for the top dividend payers.
- Coca-Cola (KO), Colgate-Palmolive (CL), and Home Depot (HD) all make the quality growth roll call along with surprise entry Starbucks (SBUX).
Mar. 18, 2014, 8:53 AM
- The price of milk rose to an all-time high yesterday on the back of strong demand from global buyers.
- A tough winter in the U.S. has also curtailed production tallies.
- Most of the additional milk costs are being passed on to consumers, according to data from the USDA. Milk prices rose 27% Y/Y in February.
- Analysts are split on how much wiggle room companies have to boost prices higher with consumers before hitting stiff resistance.
- Milk futures charts
- Stocks with a tie-in to milk: SJM, DF, NSRGY, WWAV, LWAY, DNKN, MCD, SBUX, KO, GIS, SYUT, ADY.
Mar. 14, 2014, 11:07 AM
- The new deal signed by Starbucks (SBUX -0.1%) with Keurig Green Mountain (GMCR +3.7%) is a bet on the power of its brand, say analysts.
- The company is opening up competition on the premium end while giving itself a wide variety of K-Cup products it can offer to consumers.
- The road for new K-Cup players gets a little trickier with the super-premium category a tough place to grab market share and Starbucks now a force at differing price points.
- For Keurig, an increase in K-Cup volume and more competition on the high-end could be a boost.
Mar. 14, 2014, 10:50 AM| 1 Comment
Mar. 12, 2014, 7:08 AM
- Breakfast traffic at restaurants increased 3% last year to easily outpace lunch and dinner visits which both showed declines, according to NPD data.
- Quick service restaurants accounted for close to 80% of all the breakfast visits by consumers.
- McDonald's (MCD) and Starbucks (SBUX) strengthened their breakfast market share position during the year, but a host of companies including Taco Bell (YUM) and Chipotle (CMG) are testing new formats and breakfast items.
Mar. 11, 2014, 11:56 AM
- Starbucks (SBUX +1.8%) CEO Howard Schultz was pretty firm in an interview on Fox Business Network that the company doesn't plan to hike coffee prices despite higher commodity cost.
- "I suspect coffee prices might go up even higher. We will anticipate that and most importantly, we can manage through it. We do not have any intention at this time to raise prices," says Schultz/
- The company is protected for at least a year against higher prices due to its forward pricing strategy.
- Schultz also says he sees a "seismic shift" in mobile payments. Starbucks remains a retail leader in the area with close to 10M customers using its app and has several new customer-friendly initiatives on tap to be released this year.
- It's crystal clear that Starbucks isn't denying or challenging the Amazon Effect, but is planning around it.
- FBN interview (video)
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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