Apr. 28, 2014, 7:40 AM
- Coffee prices could keep rising as fresh estimates on Brazil's coffee harvest point to more weakness.
- Marex Spectrom expects a harvest in the 2014-2015 season of 49M bags vs. a prior forecast of 55M bags and 53.3M bags a year ago.
- Analysts say the Arabica supply situation is deteriorating due to harsh weather in Brazil
- Related stocks: SBUX, GMCR, JVA
- Related ETFs: JO
Apr. 25, 2014, 10:13 AM
- "The test is over," says Starbucks (SBUX +0.3%) CEO Howard Schultz, telling CNBC the company is plowing ahead with offering alcohol in its stores.
- In other news from the conversation:
- Fizzio is a key focus of his (SODA -2.9% in early action).
- While raw coffee prices are up 80%, they're just 10% of Starbucks' operating cost, and "If push came to shove, we have pricing power."
- Schultz gets a chuckle out of competitors who blame the severe winter weather for weak results.
- Last night's earnings coverage
Apr. 24, 2014, 4:24 PM
- Starbucks (SBUX) reports global comparable store sales increased 6% in FQ2 vs. 5% in FQ1 and 6% for the year-ago period.
- Comp growth was fairly consistent across regions: Americas and U.S. +6%; EMEA +6%; China/Asia Pacific +7%.
- Operating margin improved 130 bps to 16.6% on sales leverage gains and lower commodity costs (coffee was hedged).
- The company added 335 net new stores during the quarter.
- FY14 EPS guidance is increased to $2.62-$2.68.
- SBUX +0.9% AH
Apr. 24, 2014, 4:07 PM| Comment!
Apr. 23, 2014, 12:26 PM
- Starbucks (SBUX -0.9%) is in advanced talks to purchase 10% of SodaStream (SODA +11.5%), according to a report from Globes.
- The Israeli publication indicates the deal price could be at a 30% premium over SodaStream's market price.
- The spotlight turned to SodaStream after Coca-Cola and Keurig Green Mountain struck what could be a disruptive deal earlier this year.
Apr. 21, 2014, 10:28 AM
- Citi analysts post their list of 50 top Buy-rated stocks with a market cap of at least $3B, at least a top-three market share in a third of their businesses, and a global reach as measured by significant revenue outside of their home market; Business Insider highlights 20 according to estimated total return.
- Gilead Sciences (GILD) tops the list with a 45.4% ETR, and Citi believes GILD will generate a significant amount of cash and will buy back stock, engage in product and company acquisitions to grow its pipeline, and potentially start providing a dividend in 2-3 years.
- Rounding out the top 20: FB, BX, V, CERN, FLT, BA, MA, LVS, SBUX, MJN, GOOG, EBAY, BIIB, AXP, HOG, VFC, PII, VMC, FTI.
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
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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