Latest news with #SBUX
Reuters
6 hours ago
- Business
- Reuters
Starbucks to lower prices of some drinks in China
BEIJING, June 9 (Reuters) - Starbucks (SBUX.O), opens new tab will lower prices of some iced drinks by an average of 5 yuan ($0.70) in China, the company said in a post published on its Weixin social media account on Monday. The U.S. coffee chain said it would create a "whole-day" service scenario, focusing more on the afternoon with the products whose prices are more "accessible" from Tuesday. ($1 = 7.1870 Chinese yuan renminbi)
Yahoo
4 days ago
- Business
- Yahoo
Starbucks (SBUX) Surpasses Market Returns: Some Facts Worth Knowing
Starbucks (SBUX) closed the most recent trading day at $88.13, moving +1.77% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.01%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.32%. The coffee chain's stock has climbed by 4.61% in the past month, exceeding the Retail-Wholesale sector's gain of 4.04% and lagging the S&P 500's gain of 5.2%. Investors will be eagerly watching for the performance of Starbucks in its upcoming earnings disclosure. In that report, analysts expect Starbucks to post earnings of $0.66 per share. This would mark a year-over-year decline of 29.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.29 billion, up 1.94% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.53 per share and revenue of $36.89 billion. These totals would mark changes of -23.56% and +1.97%, respectively, from last year. Investors should also note any recent changes to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.89% downward. Right now, Starbucks possesses a Zacks Rank of #4 (Sell). Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 34.2 right now. This represents a premium compared to its industry's average Forward P/E of 23.58. Meanwhile, SBUX's PEG ratio is currently 4.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry currently had an average PEG ratio of 2.55 as of yesterday's close. The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 28% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow SBUX in the coming trading sessions, be sure to utilize Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
Was Jim Cramer Right About Starbucks Corporation (SBUX)?
We recently published a list of . In this article, we are going to take a look at where Starbucks Corporation (NASDAQ:SBUX) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 15, a caller on the Mad Money show asked about Starbucks Corporation (NASDAQ:SBUX), citing busy drive-throughs and new promotional efforts. Cramer acknowledged past missteps but remained cautiously optimistic. 'Okay, I think Starbucks — the stock is too cheap. I think that they have to — uh, let's just say they've got to be realistic that a turn's going to take a while and that a plan includes having, say, a Starbucks 2 like Panera 2, where they really figure out how to handle throughput and they figure out whether the baristas can make all the drinks and how to handle the lines and mobile order pay without cutting in front. And they have to do those things — and when they do that, they'll get it right. So no, my trust owns it, but you see, my trust is down a huge amount — and when that happens, it's my fault, okay? It's my fault, because I believe. And when you believe and the stock goes down, it's on you, not on them.' Starbucks rebounded moderately after Cramer called it cheap, climbing 13.67% and rewarding those who held on. A close-up of a freshly roasted coffee bean, accompanied by a vintage aluminum scoop. Starbucks Corporation (NASDAQ:SBUX) has benefited from loyalty program expansions and international growth despite internal restructuring challenges. Following a recent dip in early April, Cramer advised his viewers to not sell the stock: 'Starbucks down eight. Should we not think about he's got it under force, under four minutes now?' Ahead of the company's earnings report, Cramer had this to say in late April: 'Tuesday night, okay, I'm betting that Brian Niccol will spell out his strategy for Starbucks, both domestic and international…. The stock first shooting up 30 points on Niccol's appointment and then giving almost all of it back when the numbers didn't turn around immediately and the market got ugly. I always thought that a quick breakout was a ridiculous assumption, but now the rubber's going to hit the road, and I still don't see a breakout quarter, but we're going to hold it nonetheless.' Overall, SBUX ranks 3rd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of SBUX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SBUX and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
SBUX Q1 Earnings Call: Turnaround Efforts Prioritized as Sales Miss Expectations
Coffeehouse chain Starbucks (NASDAQ:SBUX) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 2.3% year on year to $8.76 billion. Its non-GAAP profit of $0.41 per share was 15.2% below analysts' consensus estimates. Is now the time to buy SBUX? Find out in our full research report (it's free). Revenue: $8.76 billion vs analyst estimates of $8.82 billion (2.3% year-on-year growth, 0.6% miss) Adjusted EPS: $0.41 vs analyst expectations of $0.48 (15.2% miss) Adjusted EBITDA: $1.14 billion vs analyst estimates of $1.23 billion (13% margin, 7.7% miss) Operating Margin: 6.9%, down from 12.8% in the same quarter last year Free Cash Flow was -$297.2 million compared to -$153.1 million in the same quarter last year Locations: 40,789 at quarter end, up from 38,951 in the same quarter last year Same-Store Sales fell 1% year on year (-4% in the same quarter last year) Market Capitalization: $97.36 billion Starbucks' first quarter results reflected ongoing challenges as the company reported revenue and profit below Wall Street expectations. Management attributed performance to continued investments in its "Back to Starbucks" turnaround plan, which focuses on improving store operations, enhancing the customer experience, and resetting the cost structure. CEO Brian Niccol noted that early signs of progress are visible, particularly in North America, but acknowledged that financial performance remains below the company's potential at this stage of the turnaround. Looking ahead, Starbucks leadership emphasized patience, stating that the turnaround will take time to fully translate into improved financial outcomes. CFO Cathy Smith highlighted a focus on disciplined investment and cost management, with an intention to balance near-term operational challenges with long-term growth opportunities. Management refrained from providing detailed financial guidance, citing the ongoing nature of strategic changes and the need for further progress before offering a more specific outlook. Management highlighted several company-specific operational and strategic initiatives that shaped the quarter's results and are intended to drive longer-term improvements. Key themes included operational resets, labor investments, market-specific adjustments, and a renewed focus on customer experience. Labor Investment and Service Model: Starbucks prioritized investing in store labor and a new "green apron" service model over equipment upgrades, targeting improved throughput, customer connection, and transaction growth. This approach was piloted in hundreds of stores and is being scaled nationwide. Menu Simplification and Innovation: The company continued to simplify its menu, removing slower-selling items to focus on core coffee offerings and new platforms such as the Cortado and matcha beverages. These changes are designed to enable more impactful product innovation and operational efficiency. Store Portfolio and Cost Reset: Management acknowledged rising costs in new store builds and renovations and is temporarily slowing unit growth to focus on reducing build costs and improving store economics before ramping expansion. Marketing and Brand Repositioning: A multi-channel brand campaign and menu innovation drove higher engagement, especially among non-loyalty customers. Management pointed to improvements in brand perception and customer preference as evidence of early impact. International Market Adjustments: The company cited positive comp sales in eight of its top ten international markets, with tailored product launches and local marketing, particularly in Canada, the UK, Japan, and China, supporting recovery and growth. Starbucks' outlook centers on scaling operational changes, managing cost headwinds, and adapting to consumer sentiment, with management focused on long-term growth and margin recovery as the turnaround progresses. Operational Efficiency Initiatives: The rollout of new labor models, order sequencing technology, and menu simplification is expected to gradually improve transaction trends and customer satisfaction as these programs reach more stores. Margin Pressures and Cost Management: Margin recovery will depend on balancing increased labor investments with reductions in store build costs, supply chain adjustments due to tariffs, and the impact of commodity prices, particularly coffee. Consumer and Market Dynamics: Management cited uncertainty in consumer demand and macroeconomic conditions as ongoing risks, but believes that store experience improvements and targeted marketing can help offset external headwinds. David Palmer (Evercore ISI): Asked how shifting from equipment investment to labor and technology would impact store-level costs and rollout speed. Management confirmed the approach allows for faster deployment with cost discipline, but said it was too early to quantify the financial impact. Sara Senatore (Bank of America): Questioned whether labor investments would permanently alter store economics and margin profile. CEO Brian Niccol stated the strategy aims for higher-quality, non-discount-driven transactions and expects margins to recover as growth returns. David Tarantino (Baird): Sought clarity on the store portfolio review and pace of new unit growth. Management explained that store openings would slow temporarily while design and cost resets are implemented, with expansion to accelerate later. Brian Harbour (Morgan Stanley): Asked if menu simplification impacted transactions and how innovation would be sequenced. Management reported improved transaction comps in more stores and described a structured process for introducing new items to ensure operational fit and customer relevance. Christine Cho (Goldman Sachs): Inquired about early results from the order sequencing algorithm for mobile and in-store orders. Starbucks cited reduced wait times and improved partner experience in pilot stores, supporting broader rollout. In the coming quarters, the StockStory team will be closely monitoring (1) the nationwide rollout and operational impact of the green apron service model and order sequencing technology, (2) evidence of margin stabilization as labor investments are scaled and store build costs are reset, and (3) transaction and comp sales trends in key geographies, especially North America and China. The pace and effectiveness of menu innovation and marketing efforts will also be important indicators of progress. Starbucks currently trades at a forward P/E ratio of 27.2×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
30-04-2025
- Business
- Globe and Mail
Should You Buy Starbucks Stock (SBUX) Before Q2 Earnings?
Starbucks (SBUX) is set to report its fiscal second-quarter earnings on Tuesday, April 29, and investors are eager to see if the coffee giant can regain momentum. SBUX stock remains down about 8% year-to-date and roughly 28% below its 52-week high. As Wall Street watched closely, Starbucks' upcoming results could be pivotal in determining whether the stock is poised for a meaningful rebound. However, significant upside will depend not only on meeting or exceeding Q2 expectations but also delivering guidance that signals a return to growth. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. While analysts remain confident in CEO Brian Niccol's turnaround strategy, sentiment around Starbucks' upcoming earnings remains cautious. President Trump's trade war and proposed tariffs have dampened consumer sentiment and sparked anti-American sentiment toward U.S. brands abroad. Still, analysts maintain a Moderate Buy rating on Starbucks stock, projecting more than 20% upside over the next 12 months. What Wall Street Expects from Starbucks's Q2 Earnings For Q2 FY25, analysts expect Starbucks to report earnings per share (EPS) of $0.5, a notable drop from $0.68 in the same quarter last year. Revenue is projected to come in at $8.83 billion in the second quarter, down from $9.4 billion in the previous quarter. Meanwhile, same-store sales growth is expected to decline by 0.6% as compared to a decline of 4% in Q2 2024. The company continues to face challenges in boosting global same-store sales, particularly in China, where same-store sales declined 6% in the first quarter. Analysts and investors will also be looking for clarity on reports that the coffee giant may be exploring selling its China business. Analysts Cut Price Targets on SBUX Stock amid Macro Headwinds Ahead of Q2 earnings, four-star-rated analyst Gregory Francfort at Guggenheim lowered his price target on SBUX stock from $95 to $83. Francfort noted that the restaurant industry has faced a tough sales environment in 2025, and Starbucks is likely feeling the impact too. He maintained a Hold rating on the stock. Meanwhile, UBS analyst Dennis Geiger also trimmed his price target from $105 to $90, predicting an upside of 7%. Geiger said this week that Starbucks' turnaround efforts, like improving operations, marketing, pricing, and customer experience, should help boost sales over time. However, he warned that tough economic conditions and rising costs may slow down progress and delay margin improvements. Is Starbucks a Good Stock to Buy Now? On TipRanks, SBUX stock has a Moderate Buy consensus rating based on 16 Buys and nine Holds assigned in the last three months. The average Starbucks stock price target of $102.73 implies a 22.4% upside from current levels. See more SBUX analyst ratings
