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?.
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.
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
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
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 MarketWatch.com
- 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.
- Other restaurant stocks: CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
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%.
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
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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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