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Starbucks Corporation (SBUX)

  • Thu, Jan. 22, 5:36 PM
  • Thu, Jan. 22, 4:14 PM
    • Starbucks (NASDAQ:SBUX) reports global comparable store sales increased 5% in FQ1 vs. 4.9% expected and 5.0% last quarter and in the year-ago period.
    • Traffic was 2% higher during the quarter.
    • Comp growth by region: Americas and U.S. +5%; EMEA +4%; China/Asia Pacific +8%.
    • Operating margin improved -130 bps Q/Q and -10 bps Y/Y to 19.1%. The decline was due in a large part to a shift in ownership in Japan.
    • My Starbucks Rewards member adds +10% to over 9M members.
    • The company added 512 net new stores during the quarter.
    • FY15 EPS guidance is reaffirmed at revenue growth of 16%-18% and a mid single-digit comp.
    • FY15 EPS of $3.09-$3.13 expected vs. $3.13 consensus.
    • SBUX +3.17% AH
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  • Thu, Jan. 22, 4:04 PM
    • Starbucks (NASDAQ:SBUX): FQ1 EPS of $0.80 in-line.
    • Revenue of $4.8B (+13.2% Y/Y) in-line.
    • Shares +2.4%.
  • Fri, Jan. 9, 9:35 AM
    • Reports indicate the departure of Starbucks (SBUX -1.3%) COO Troy Alstead is due to a personal issue which has been under discussion for some time.
    • The Puget Sound Business Journal suggests it's "unlikely" Alstead will return to the company.
    • Alstead nearly left the company in 2008 before CEO Howard Schultz talked him into staying.
    • Several analysts have tipped that the dip in shares makes for a good entry point on Starbucks, although SA contributor Howard Penney has a detailed look on the company which could give some investors pause.
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  • Mon, Jan. 5, 9:16 AM
    • Janney Capital Markets downgrades Starbucks (NASDAQ:SBUX) to a Neutral rating from Buy
    • The investment firm thinks shares could have a testy year as the company struggles to show accelerating comp growth.
    • SBUX -1.69% to $80.06.
  • Dec. 5, 2014, 8:32 AM
    • JPMorgan raises its price target on Starbucks (NASDAQ:SBUX) to $89 from $82 after taking in the company's Investor Day presentation.
    • Piper Jaffray thinks share will "double" in the next four years. Needless to say the firm has an Overweight rating locked in on the Seattle company.
    • Other analysts are giving Starbucks CEO Howard Schultz for staying ahead of the "seismic" change in retail toward mobile as best he can with a brick-and-mortar operation.
    • Previously: Starbucks Investor Day: Wine, mobile ordering, and China expansion all on tap (Dec. 04 2014)
    • SBUX +0.9% premarket.
  • 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%.
  • 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."
  • 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
  • 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.
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  • 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
  • Jul. 24, 2014, 4:17 PM
    • Comparable store sales globally up 6%, up 7% in the U.S. (vs. 5.1% expected), up 3% in EMEA (3.5% expected), up 7% in China/Asia-Pacific (7.1% expected).
    • Operating income of $769M up 25%; operating margin up 200 bps to 18.5%.
    • 344 new stores opened globally brings quarter-end count to 20,863 stores over 64 countries.
    • Updated fiscal14 targets: Operating margin improvement targeted at 200 bps over 2013; adjusted EPS in range of $2.65-$2.67, with adjusted Q4 EPS expected at $0.73-$0.75. Net new stores expected at about 1,550 with Americas new stores boosted to 650 from 600.
    • Fiscal 15 targets introduced: Revenue growth of at least 10%; global comp store sales growth in mid-single digits; an additional 1.6K new stores globally; EPS growth of 15-20%.
    • Conference call at 5 ET
    • Previously: Starbucks beats by $0.01, beats on revenue
    • SBUX active AH, and currently down 0.6%.
  • May. 20, 2014, 10:21 AM
    • Amazon (AMZN +1.7%) trades higher amid a tough day in retail.
    • There's nothing concrete on the table, but some analysts think the company has been stealing some market share from major retailers in Q1 and Q2 as consumers continue to evolve their shopping habits. Staples (SPLS -10%) and Office Depot (ODP -1.5%) come to mind.
    • Starbucks (SBUX -1.3%) CEO Howard Schultz seems to have called the retail slide with his perception that a "seismic shift" toward online and mobile is beyond the tipping point (FBN interview, SBUX conference call).
  • May. 14, 2014, 7:55 AM
    • SodaStream (SODA) is in focus after a stumble in the U.S. drives home that the company is having some trouble penetrating the region to the same degree as other markets.
    • Guidance from SodaStream is for a FY14 revenue to increase by 15% to $647.11M vs. $639.3M consensus.
    • The company sees FY14 net income improving by 3% Y/Y to $42M.
    • What to watch: Weakness by SodaStream in the U.S. is almost sure to drive out more speculation on a major beverage player buying out the Western Europe juggernaut. Pepsico (PEP) and Starbucks (SBUX) top the list.
    • SodaStream earning call webcast 7:30 EST.
    • SODA -3.3% premarket
    | Comment!
  • 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
SBUX vs. ETF Alternatives
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