From other sites
at CNBC.com (Thu, 7:00PM)
at CNBC.com (Thu, 6:55PM)
at CNBC.com (Thu, 6:54PM)
at Benzinga.com (Thu, 4:56PM)
at CNBC.com (Thu, 9:24AM)
at CNBC.com (Thu, 7:00AM)
at CNBC.com (Wed, 4:51PM)
at Nasdaq.com (Tue, 1:02PM)
at Nasdaq.com (Mon, 1:01PM)
at Nasdaq.com (Mon, 1:00PM)
- While my previous article used the Dividend Discount Model to yield a price target of $101, the Capital Asset Pricing Model suggests an even higher target of $137.
- When compared to Dunkin' Brands Group and McDonald's Inc. to Starbucks, we see that Starbucks is the only company with its daily return meeting its expected return.
- With a beta of 0.95 and an R-Squared value of 28.74%, the company overall has less risk characteristics relative to the broader market.
- SBUX's flagship location in Chengdu is part of its aggressive China growth strategy.
- Localization of menu and storefront will be important to attract traffic.
- Maintaining supplier integrity and quality will be key priorities.
- Starbucks is one of the few in-store retailers that we'd take a chance on. Otherwise we're bearish on retail.
- Starbucks is going to transform into more than just a coffee shop.
- We think there's long-term potential.
Starbucks: Recently Announced 5-Year Plan Looks Great, But...
- The company plans to push further into the tea market and offer more consumer food products in supermarkets.
- The company plans to expand their food offerings and alcoholic beverage offerings into more stores to expand revenue during the quiet lunch and evening periods.
- The company’s announced mobile order and pay process will allow customers to place orders in advance of their visit and allow for food and beverage delivery in select areas.
- A prospective SBUX investor should either wait for a pull back in the company’s shares or average into a position in SBUX shares in set dollar amount increments.
- A history of substantial dividend increases will reward SBUX shareholders as SBUX's initiatives continue to unfold.
- I came away positive after attending SBUX investor day where the company clearly outlined its 5-year growth plan.
- Expanding services (i.e. mobile pay, mobile order, food delivery) and derivative food/beverage (i.e. wine/beer, tea, lunch) will drive domestic growth.
- China and India will drive growth post 2019 when North America is expected to hit maturity.
- SBUX detailed a five-year plan to get to $30 billion in revenue.
- Some of the (quite interesting) details suggest maybe even the $30 billion target is conservative.
- What would $30 billion in revenue translate into EPS?
- And does that EPS, along with a five-year discount rate, make SBUX under or overvalued?
Location, Location, Starbucks... A Different Approach To Real Estate Investing
- Would we be right in categorizing McDonald's as a real estate company? What about Starbucks?
- Is Starbucks using the same model for choosing locations as McDonald's?
- Can we profit from Starbucks as a real estate company?
Starbucks Likely To Brew Significant Gains For Your Portfolio
- Starbucks offers compelling growth potential (estimated at nearly 18% annually), but the shares trade at a premium multiple (25 times forward earnings).
- The DRAG analysis investigates the company's fundamental attributes and views its strong competitive position, flexible balance sheet and increasing dividend as positive factors.
- The resulting calculation demonstrates that, based on this framework, Starbucks shares are currently undervalued by 25% and therefore represent an attractive investment opportunity in the consumer sector.
- Starbucks' mobile ordering - a way to squeeze more sales out of each of its outlets, keep same store sales growth humming along, and fatten profit margins.
- The company faces an aggressive schedule and there are plenty of logistical issues to work out.
- But the potential payoff for Starbucks is huge.
- This is the first of a 10 part piece where I pick 10 stocks for the long-run.
- Starbucks has a solid moat and will still be serving coffee 20 years from now.
- Starbucks still has big potential in tea, China, and in its digital efforts.
Starbucks: Quietly Becoming A Dividend Growth Powerhouse
- Revenues in the latest quarter grew, but not as much as investors had expected and the company’s share price dropped.
- Lost in the disappointing revenue growth was a 23 percent dividend increase and a tripling of SBUX’s dividend since 2010.
- The company is becoming a powerful force in the dividend growth category of stocks.
- The long-term plans and objectives of SBUX management remain intact and will reward current and future shareholders.
- Prospective SBUX shareholders should wait for the share price to pull back before establishing a full position.
Starbucks Stock Fails To Woo Investors Despite Top Line Growth
- Starbucks sales see growth, but fail to meet analysts’ forecasts. Consolidated net revenues increased by 10% to $4.2 billion with a consolidated operating income of $854.9 million this quarter.
- Starbucks continues to exploit its innovative tradition and raised prices on its products. It was able to realize more revenue through raising prices.
- It plans to launch a nationwide delivery service based on a mobile app. This initiative carries a lot of potential but also carries some evident risks.
- Recovering world economy is likely to boost consumption expenditure in the future which could be seen as an opportunity to generate more sales.
- The coffeehouse company’s stock will not likely see any vertical growth anytime soon.
- While some were disappointed with Starbucks’ Q4 report, we are encouraged by the company’s strong and consistent sales growth.
- Starbucks is going mobile—pushing new frontiers of e-commerce in the food and beverage industry.
- The company proved resilient to a Q3 price hike; customers are apparently loyal.
- With feasible strategies for growth on the horizon, both domestically and internationally, we are optimistic on the company and stock as 2014 comes to a close.
- Starbucks released Q4 earnings on October 30.
- Dunkin' Brands released Q3 earnings on October 23.
- Both stocks reacted by moving to the downside.
- Which company had the better quarter?
- Starbucks 2.0 could be a major tailwind for sales and earnings growth going forward.
- SBUX is expensive but if the company can execute on mobile initiatives $75 could turn out to be a great buying opportunity.
- Innovation and a rabid customer base means that while SBUX is expensive, I'm getting bullish here.
Fri, Dec. 5, 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.
Tue, Oct. 7, 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%.
Tue, Sep. 23, 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."
Mon, Aug. 25, 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%.
Fri, Jul. 25, 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.
Fri, Jul. 25, 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
Thu, Jul. 24, 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%.
Tue, May. 20, 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).
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, IYC, FXD, SCC, FDIS, UCC, RHS, PMR, FSTA, RCD, UGE, PSL, PEZ, PSCC, PSCD, SZK
Wed, May. 14, 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
Fri, Apr. 25, 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
Thu, Apr. 24, 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
Thu, Apr. 24, 4:07 PM| Comment!
Wed, Apr. 23, 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.
Thu, Feb. 6, 8:10 AM
- KeyBanc raises its price target on Green Mountain Coffee Roasters (GMCR) to $150. The investment firm is being listened to after calling out just two months ago the potential for a Coca-Cola partnership with GMCR. Shares of GMCR are up 43.7% premarket to $115.50 - a level last seen in 2011.
- The deal is a positive for Coca-Cola (KO) as it refreshes its ability to enter a new category with growth potential, says Stephanie Link. If there's a concern, it's with Coca-Cola bottlers (CCE, COKE, KOF) who now have a risk to profitability.
- Shares of SodaStream (SODA) have recovered nicely from their initial plunge following the KO-GMCR news and are now off only 2.9% premarket. There's plenty of speculation that PepsiCo (PEP) will be tempted to match Coca-Cola's move into home beverage systems with a SodaStream deal.
- No panic with Starbucks (SBUX), +0.4% premarket, as analysts see the company's comfortable relationship with GMCR unaffected.
Thu, Jan. 23, 4:09 PM
- Starbucks (SBUX) reports same-store sales rose 5.0% during FQ1 in the Americas to fall short the consensus estimate calling for a 6.25% gain, but fall within the company's guidance range for mid single-digit growth.
- Global comparable-store sales rose 5.0% during the quarter vs. 5.7% consensus. Traffic was up 4%, while ticket prices rose 1% across all geographic segments.
- Operating margin rose 260 bps Q/Q to 19.2%, compared to Starbucks' 2014 guidance for a range of 19.1% to 19.6%.
- The company opened 417 net new stores during the quarter to reach a total store count of 20,184.
- SBUX -1.4% AH
Nov. 13, 2013, 7:54 AM| Comment!
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.
Other News & PR