Starbucks (SBUX)

Re: Starbucks (SBUX)

Postby winston » Mon Mar 19, 2018 8:26 am

Starbucks Corporation Prepping for a New Growth Phase

SBUX is paying careful attention to customer experience

By LAWRENCE MEYERS

Starbucks’ own data shows that only about 20% of its consumers are in the rewards program. the company is wondering why the other 60 million people haven’t joined and want to address that.

Consumers that spend through the program are getting a discount of 7% to 8%.




Source: Investor Place

https://investorplace.com/2018/03/starb ... at&cp=pdtk
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Re: Starbucks (SBUX)

Postby winston » Mon Mar 19, 2018 9:18 pm

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Starbucks: Heightened Leverage, All-In Bet On China Tastes Sour

Mar. 13, 2018

by Michael Boyd

Summary

Starbucks has held up despite a collapse in same store sales. Share buybacks and management's "China, China, China" talk have misdirected investors.

China is a tough cookie to crack; Xi Jinping's takeover of the government raises concerns. Who knows what China looks like in five years.

Capital returns to shareholders have been funded with debt. New FASB standard will move billions of dollars in liabilities onto the balance sheet.

Source: Seeking Alpha

https://seekingalpha.com/article/415606 ... ngcom_feed
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Re: Starbucks (SBUX)

Postby winston » Fri Mar 23, 2018 9:26 pm

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Sideways Stocks That Aren’t Worth Your Time: Starbucks Corporation (SBUX)

Starbucks Stock Bulls Ignoring China Risks

Starbucks Corporation (NASDAQ:SBUX) is arguably everyone’s favorite coffee shop. But SBUX stock has been far from a favorite on Wall Street.

Over the past 2 years, while the S&P 500 has partied its way to 30%-plus gains, SBUX stock has bounced, dropped, and overall is down about 2%.

That is a pretty bad showing for SBUX stock over the past 2 years. And its because everyone’s favorite coffee shop is starting to lose its luster.

There has been a boom in indie coffee shops. (That source is about the UK, but the same trend can be see in the U.S. and elsewhere) These coffee shops are successfully drawing the trendy crowd away from Starbucks by painting themselves as “local and homey” versus Starbucks’ giant corporate feel.

The indie coffee shops are winning. And Starbucks is losing.

The numbers show this. Starbucks used to be a staple for consistent and strong comparable sales growth. The company once had a 25 consecutive quarter streak of comparable sales growth of 5% or greater.

But that streak was broken in mid-2016. SBUX reported comparable sales growth of 4% in the third quarter of 2016. Ever since, comparable sales growth has not only been stuck below 5%, but its also come all the way down to 2% over the past 2 quarters.

Worse yet, transaction growth is flat. That means SBUX isn’t driving any new traffic through its doors. Again, this represents a radical change from SBUX’s historical norms. During its 25 quarter streak of 5% and up comps, traffic growth was always positive.

All in all, SBUX is staring at a new era of substantially slower growth over the next 5 years thanks to the rise of indie coffee shops and a more equal playing field in the retail coffee game. But SBUX stock still trades at 23-times forward earnings, which is largely in-line with its historical average.

That doesn’t make sense. Valuation is out of whack with the 5-year growth outlook. Therefore, SBUX stock could very likely continue its sideways run.

Source: Investor Place
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Re: Starbucks (SBUX)

Postby winston » Sun Jun 10, 2018 8:36 am

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We’re Buying This Stock on Tuesday, June 12

by Mike Nadel

In three decades’ time, Starbucks has grown from 11 stores in Seattle to more than 28,000 in 76 countries. In the first quarter of 2018 alone, SBUX opened nearly 500 new stores.

China: By 2022, Starbucks plans to nearly double its footprint there to 6,000 stores and aims to triple its revenue.

In May, the company received $7.15 billion from Nestle (NSRGY) for the right to market, sell and distribute Starbucks products, including Seattle’s Best Coffee, Teavana teas and VIA instant coffees.


Source: Daily Trade Alert

http://dailytradealert.com/2018/06/09/w ... y-june-12/
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Re: Starbucks (SBUX)

Postby winston » Thu Jun 21, 2018 4:13 am

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Moody's downgrades Starbucks ratings on concerns it is borrowing to reward shareholders

By Ciara Linnane

Moody's Investors Service downgraded Starbucks Corp.'s senior unsecured rating by one notch to Baa1 from A3 Wednesday, after the company's decision to "materially" increase its debt load to support shareholder returns.

Starbucks said Tuesday it is planning to return $25 billion to shareholders through 2020, up from a plan to return $15 billion in 2018.

"We estimate that the additional debt needed to fund the proposed shareholder returns will result in leverage exceeding 2.8 times and retained cash flow to total debt of around 20%."

The rating agency is also concerned that Starbucks may be reluctant to curtail shareholder returns if operating results fall short of estimates.

The company's shares were down 9.4%, while the S&P 500 SPX, +0.17% was up 0.3%.

Source: Market Watch

https://www.marketwatch.com/story/moody ... arketPulse)
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Re: Starbucks (SBUX)

Postby winston » Thu Jun 21, 2018 4:19 am

Starbucks Lose Buzz: Downside Risk

By Steve Miller

Starbucks Corporation (NASDAQ:SBUX) traded -8% lower on Wednesday morning, after announcing that it would close 150 US coffee shops in the 2019 fiscal year.

That is triples the average number of shops that Starbucks closed in recent years, which may be due in part to slowing sales.

As well, an oversupply of cafes may be factoring in, as there are over 14,000 Starbucks cafes in the US. With supply having increased by 16% over the last 3 years, the announcement may have highlighted the oversupply problem.

Source: Investing.com

https://www.investing.com/analysis/star ... -200326490
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Re: Starbucks (SBUX)

Postby winston » Fri Jun 22, 2018 8:39 am

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Top Stock Trades for Tomorrow #1: Starbucks (SBUX)

There’s a lot to react to Wednesday, so let’s start with Starbucks Corporation (NASDAQ:SBUX).

Long-time CEO Howard Schultz stepped down last year and then exited his role as executive chairman earlier this month. The company didn’t take long to make swift changes though.

On Tuesday evening, it raised the dividend 20%, announced slower-than-expected growth and said it will close more underperforming stores than previously thought.

On the surface, that doesn’t sound horrible. But that didn’t stop investors from bludgeoning the stock down almost 10% to new 52-week lows.

So what now?

SBUX stock is at a really critical point. While $60 has kept a lid on Starbucks over the past three years, $51 has been support.

Given that SBUX blew through $55 support and fell to this level in a day, bulls have a right to be nervous about it holding up.

Should it break, SBUX could fall into no man’s land. And that’s a very real possibility if the market views the stock as transitioning from growth to value.

Source: Investor Place
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Re: Starbucks (SBUX)

Postby winston » Sat Jun 30, 2018 9:12 pm

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Stocks to Buy: Starbucks (SBUX)

Starbucks (NASDAQ:SBUX) stock has now slipped into the $40’s and is trading at a 52-week low and a total annualized return of -1.2% over the past 36 months.

Given the terrible markets of late, I’m pretty sure the losses will continue as the summer progresses.

CEO Kevin Johnson finds his company in a relatively unfamiliar spot. Sales are sputtering, profits are down, and its biggest growth market (China) seems ready to reverse course — and not in a good way.

As I stated recently, the world’s biggest coffee shop needs to deliver on a few of its promises if SBUX stock is to resume heading higher.

The easier part of this undertaking is to close more stores in crowded urban U.S. markets. To that end, it will close three times as many stores next year as it will in 2018.

The hard part is deciding how much growth China can accommodate in this uncertain trade environment. The company’s currently planning to open 3,000 stores in China over the next five years.

If that doesn’t go well, shareholders can expect a stock price in the $30’s or even the $20’s over the next 12-24 months; it’s a frightening thought for a company that has been on a roll for most of the past decade.

Fear not. As in the past, the Starbucks brain trust will figure out how to re-energize the business. That said, owning its stock in the near-term is going to take courage.

Source: Investor Place
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Re: Starbucks (SBUX)

Postby winston » Sun Jul 01, 2018 8:23 pm

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Undervalued Dividend Growth Stock of the Week

by Jason Fieber

The stock is trading hands for a P/E ratio of 23.29.

Averaging the three numbers out gives us a final valuation of $67.92, which would indicate the stock is potentially 36% undervalued.


Source: Mr. Free at 33

http://dailytradealert.com/2018/07/01/u ... -week-164/
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Re: Starbucks (SBUX)

Postby winston » Thu Jul 12, 2018 12:55 pm

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Goldman Sachs Stock to Buy 1: Starbucks (SBUX)

The first stock on Goldman Sachs “buy” list that I like is Starbucks (NASDAQ:SBUX).

The global coffee house operator has been stung recently by slower growth and top executive departures, the combination of which has left investors unsure as to where Starbucks goes next.

But there really isn’t a big lack of clarity in this growth narrative. Growth will be permanently slower going forward thanks to beefed up competition, but will remain positive because Starbucks remains the gold standard in retail coffee.

For the first time in three years, SBUX stock has fallen below $50. Below $50, SBUX stock is simply undervalued considering growth will remain healthy into the foreseeable future. As such, this looks like a compelling buy-the-dip situation.

Source: Investor Place
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