Latest news with #StarbucksCorporation
Yahoo
26-05-2025
- Business
- Yahoo
Investing in Starbucks (NASDAQ:SBUX) three years ago would have delivered you a 18% gain
Starbucks Corporation (NASDAQ:SBUX) shareholders might be concerned after seeing the share price drop 26% in the last quarter. In contrast the stock is up over the last three years. However, it's unlikely many shareholders are elated with the share price gain of 10% over that time, given the rising market. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the three years of share price growth, Starbucks actually saw its earnings per share (EPS) drop 9.9% per year. The strong decline in earnings per share suggests the market isn't using EPS to judge the company. So we'll need to take a look at some different metrics to try to understand why the share price remains solid. It could be that the revenue growth of 5.3% per year is viewed as evidence that Starbucks is growing. In that case, the company may be sacrificing current earnings per share to drive growth, and maybe shareholder's faith in better days ahead will be rewarded. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). Starbucks is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Starbucks stock, you should check out this free report showing analyst consensus estimates for future profits. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Starbucks' TSR for the last 3 years was 18%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. Starbucks provided a TSR of 9.7% over the year (including dividends). That's fairly close to the broader market return. Most would be happy with a gain, and it helps that the year's return is actually better than the average return over five years, which was 4%. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Starbucks (of which 1 doesn't sit too well with us!) you should know about. But note: Starbucks may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
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
15-05-2025
- Business
- Yahoo
Is Starbucks (SBUX) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?
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 most crowded hedge fund stocks that are targeted by short sellers. Hedge funds piling into a stock is a signal of conviction. After all, if institutional investors are backing a company, there has to be a good reason for it, right? Things get interesting when the same stock ends up with a high short interest. Where some investors back the company to become successful, others bet on its downfall. This contradiction is often eagerly tracked by investors, as it can potentially lead to explosive moves to either side. Consider, for instance, a scenario where a stock with a high short interest and a high hedge fund holding starts going up. As everyone rushes to buy more of the already popular stock, short sellers rush to close their positions, triggering a strong bull rally. We decided to shortlist stocks that were the most likely candidates for such a rally. To come up with our list of 15 most crowded hedge fund stocks that are targeted by short sellers, we only considered stocks with a market cap of at least $1 billion and a short interest of at least 3%. We then ranked these stocks by the number of hedge funds that have the stock in their portfolio. A barista pouring freshly brewed coffee from an espresso machine to a cup in a bustling cafe. Number of Hedge Fund Holders: 84 Short Interest: 3.15% Starbucks Corporation (NASDAQ:SBUX) is a marketer, roaster, and retailer of coffee. It operates in the International, North America, and Channel Development segments. The company's stores provide tea, coffee, single-serve products, roasted whole beans and ground coffees, and different food products. As per the recent earnings report, the firm fell short of expectations. Due to a 2% drop in comparable transactions, global comparable store sales went down by 1%. However, the firm managed to improve its consolidated net revenue by 2.3%. Despite missing targets, Starbucks (NASDAQ:SBUX) saw a slight turnaround under the new CEO, Brian Niccol. CEO Brian Niccol pointed out the turnaround: 'My optimism has turned into confidence that our Back to Starbucks plan is the right strategy to turn the business around and to unlock opportunities ahead. Improving transaction comp in a tough consumer environment at our scale is a testament to the power of our brand and partners getting 'Back to Starbucks.' We are on track, and if anything, I see more opportunity than I imagined.' Heading into 2025, management remains confident in its Back to Starbucks strategy to grow and stabilize the business. However, the company did not disclose the detailed financial outlook for upcoming quarters. Recovery and international expansion are major priorities, with 8 out of the top 10 markets indicating improvement in sales. Moreover, the company plans to enhance operational efficiency. Overall, SBUX ranks 7th on our list of most crowded hedge fund stocks that are targeted by short sellers. 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 doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SBUX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Is Starbucks Corporation (SBUX) The Best Restaurant Stock to Buy According to Hedge Funds?
We recently compiled a list of the 12 Best Restaurant Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Starbucks Corporation (NASDAQ:SBUX) stands against the other best restaurant stocks. Restaurant stocks are businesses that own, run, and franchise full-service restaurants that sell prepared food and drinks at retail. According to estimates from the National Restaurant Association, restaurant sales in the United States reached an all-time high of $1.1 trillion in 2024. The industry's sales exceeded $1 trillion for the first time ever. According to the group, the industry's workforce was projected to go up by 200,000 jobs in 2024, bringing its total employment to just under 16 million by the end of the year. Restaurants are facing increased competition as well as greater operating expenses, especially labor costs. Michelle Korsmo, President & CEO of the National Restaurant Association, stated: 'With more than $1 trillion in sales expected this year, the state of the restaurant industry is strong thanks to the agility of its operators and employees,' 'As our report shows, restaurants are finding ways to adapt to the challenges of increased food costs and supply chain disruption. Restaurants have responded well to customers' desire to have more opportunities to enjoy restaurant meals, which continues to grow sales, create employment opportunities, and foster a strong sense of community.' Nonetheless, as the macro economy continues to exhibit signs of inflation, many diners are having a tough time and are spending carefully. Furthermore, labor shortages, cost inflation, and an unstable economy that may reduce demand are issues that all restaurants are dealing with. Not every restaurant will do well in this volatile setting. However, the most remarkable financial resilience should be shown by companies that offer a strong value proposition to customers and keep a stable moat over the coming years. As per the National Restaurant Association's research report, the restaurant business in the United States is expected to increase further in 2025, with sales expected to exceed $1.5 trillion. Employment is predicted to jump by 200,000, bringing the total workforce to 15.9 million. Demand from customers is still strong; 90% of adults claim they like eating out because of the different tastes and experiences that restaurants provide. Value is a top priority, as 47% of operators want to launch new sales or promotions to draw clients. However, many customers value experience more than price: 47% of limited-service diners and 64% of full-service diners place a higher value on dining experiences than on prices. On-premises traffic is a primary strategic priority, with 90% of fine dining and 87% of casual dining operators prioritizing it over off-premises sales. Despite their willingness to pay, many consumers say they would eat out more often if they had more money to spend. As operators strike a balance between innovation, price, and experience to foster loyalty and growth, these dynamics show cautious optimism. KPMG revealed not only the challenges but also major trends that will impact the restaurant business this year, based on views from senior executives. The restaurant business expects to grow in 2025 due to the introduction of new products and the opening of more outlets. However, rising labor and food costs, as well as inflationary fears, pose serious problems, especially for franchisees. Operators are putting a high priority on digital enablement to improve customer conversion, maximize operations, and modify menus to accommodate changing customer preferences to remain competitive. Industry dynamics are still being shaped by the growing dependence on third-party ordering and delivery platforms. Lastly, it is essential to keep up a positive workplace culture to attract and keep talent. A barista pouring a freshly brewed cup of coffee from a high-end espresso machine. For this article, we sifted through the online rankings to form an initial list of the 20 Restaurant Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 84 Starbucks Corporation (NASDAQ:SBUX) is one of the most well-known restaurant brands in the world. As of the end of fiscal 2024, it had over 40,000 locations in more than 80 countries. The company is divided into three business segments: channel development (grocery and ready-to-drink beverages), international markets, and North America. Sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee, single-serve items, and company-operated outlets are the main sources of income for the coffee business. The stock jumped more than 6% YTD, making it the Best Restaurant Stock. In line with the 'Back to Starbucks' concept of the company's new CEO, Brian Niccol, Starbucks Corporation (NASDAQ:SBUX) business strategy will probably undergo a significant adjustment. The company continues to operate in a global category of one, with $36 billion in revenue in 2024, surpassing its nearest global competitor, Inspire Brands' Dunkin' Donuts, by a factor of three globally and a factor of two in its home market of the United States. In the recent quarter, Starbucks Corporation (NASDAQ:SBUX) has shown excellent operational and customer-focused momentum in North America. Partner engagement is increasing, and employee turnover is falling to less than 50%, both of which improve the consumer experience. The firm has resumed positive comparative sales and transaction growth in Canada, indicating a turnaround and room for expansion. Algorithm-driven technology and labor deployment tactics were used in a successful pilot project that improved service speed and connection, reducing in-cafe wait times by two minutes and boosting transactions. In addition to stabilizing traffic from non-Starbucks Rewards members and a decline in consumer complaints regarding wait times, brand sentiment and market share are increasing. Eight of the top ten worldwide markets reported flat or positive comparable sales, with the UK, Middle East, and Japan topping the improvements, showing that the global recovery is also underway. Overall, SBUX ranks 1st on our list of the Best Restaurant Stocks to Buy According to Hedge Funds. While we acknowledge the potential of SBUX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SBUX but that trades at less than 5 times its earnings, check out our report about this . 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.
Yahoo
12-05-2025
- Business
- Yahoo
Is Starbucks Corporation (SBUX) The Best Restaurant Stock to Buy According to Hedge Funds?
We recently compiled a list of the 12 Best Restaurant Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Starbucks Corporation (NASDAQ:SBUX) stands against the other best restaurant stocks. Restaurant stocks are businesses that own, run, and franchise full-service restaurants that sell prepared food and drinks at retail. According to estimates from the National Restaurant Association, restaurant sales in the United States reached an all-time high of $1.1 trillion in 2024. The industry's sales exceeded $1 trillion for the first time ever. According to the group, the industry's workforce was projected to go up by 200,000 jobs in 2024, bringing its total employment to just under 16 million by the end of the year. Restaurants are facing increased competition as well as greater operating expenses, especially labor costs. Michelle Korsmo, President & CEO of the National Restaurant Association, stated: 'With more than $1 trillion in sales expected this year, the state of the restaurant industry is strong thanks to the agility of its operators and employees,' 'As our report shows, restaurants are finding ways to adapt to the challenges of increased food costs and supply chain disruption. Restaurants have responded well to customers' desire to have more opportunities to enjoy restaurant meals, which continues to grow sales, create employment opportunities, and foster a strong sense of community.' Nonetheless, as the macro economy continues to exhibit signs of inflation, many diners are having a tough time and are spending carefully. Furthermore, labor shortages, cost inflation, and an unstable economy that may reduce demand are issues that all restaurants are dealing with. Not every restaurant will do well in this volatile setting. However, the most remarkable financial resilience should be shown by companies that offer a strong value proposition to customers and keep a stable moat over the coming years. As per the National Restaurant Association's research report, the restaurant business in the United States is expected to increase further in 2025, with sales expected to exceed $1.5 trillion. Employment is predicted to jump by 200,000, bringing the total workforce to 15.9 million. Demand from customers is still strong; 90% of adults claim they like eating out because of the different tastes and experiences that restaurants provide. Value is a top priority, as 47% of operators want to launch new sales or promotions to draw clients. However, many customers value experience more than price: 47% of limited-service diners and 64% of full-service diners place a higher value on dining experiences than on prices. On-premises traffic is a primary strategic priority, with 90% of fine dining and 87% of casual dining operators prioritizing it over off-premises sales. Despite their willingness to pay, many consumers say they would eat out more often if they had more money to spend. As operators strike a balance between innovation, price, and experience to foster loyalty and growth, these dynamics show cautious optimism. KPMG revealed not only the challenges but also major trends that will impact the restaurant business this year, based on views from senior executives. The restaurant business expects to grow in 2025 due to the introduction of new products and the opening of more outlets. However, rising labor and food costs, as well as inflationary fears, pose serious problems, especially for franchisees. Operators are putting a high priority on digital enablement to improve customer conversion, maximize operations, and modify menus to accommodate changing customer preferences to remain competitive. Industry dynamics are still being shaped by the growing dependence on third-party ordering and delivery platforms. Lastly, it is essential to keep up a positive workplace culture to attract and keep talent. A barista pouring a freshly brewed cup of coffee from a high-end espresso machine. For this article, we sifted through the online rankings to form an initial list of the 20 Restaurant Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 84 Starbucks Corporation (NASDAQ:SBUX) is one of the most well-known restaurant brands in the world. As of the end of fiscal 2024, it had over 40,000 locations in more than 80 countries. The company is divided into three business segments: channel development (grocery and ready-to-drink beverages), international markets, and North America. Sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee, single-serve items, and company-operated outlets are the main sources of income for the coffee business. The stock jumped more than 6% YTD, making it the Best Restaurant Stock. In line with the 'Back to Starbucks' concept of the company's new CEO, Brian Niccol, Starbucks Corporation (NASDAQ:SBUX) business strategy will probably undergo a significant adjustment. The company continues to operate in a global category of one, with $36 billion in revenue in 2024, surpassing its nearest global competitor, Inspire Brands' Dunkin' Donuts, by a factor of three globally and a factor of two in its home market of the United States. In the recent quarter, Starbucks Corporation (NASDAQ:SBUX) has shown excellent operational and customer-focused momentum in North America. Partner engagement is increasing, and employee turnover is falling to less than 50%, both of which improve the consumer experience. The firm has resumed positive comparative sales and transaction growth in Canada, indicating a turnaround and room for expansion. Algorithm-driven technology and labor deployment tactics were used in a successful pilot project that improved service speed and connection, reducing in-cafe wait times by two minutes and boosting transactions. In addition to stabilizing traffic from non-Starbucks Rewards members and a decline in consumer complaints regarding wait times, brand sentiment and market share are increasing. Eight of the top ten worldwide markets reported flat or positive comparable sales, with the UK, Middle East, and Japan topping the improvements, showing that the global recovery is also underway. Overall, SBUX ranks 1st on our list of the Best Restaurant Stocks to Buy According to Hedge Funds. While we acknowledge the potential of SBUX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SBUX but that trades at less than 5 times its earnings, check out our report about this . 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
