Stock price when the opinion was issued
Going back to basics. In only 6 months, new CEO has put his stamp on the business. Should be back to double-digit growth next year. Early stages of a turnaround. Incredible franchise. Because people put $$ on their SBUX apps (to the tune of ~$3B), it's making money off this float just like a bank.
Focus includes getting orders through much faster, but creating a better and more welcoming atmosphere. So much about the retail experience today is about the vibe.
It reported today and shares tanked 5.66% today. This is a buying opportunity, because the CEO turned around Chipotle. Give him time; it's only been 6 months. The average wait time is much lower, under 4 minutes, and is investing more in people and less in machines. Same-store sales are rising and sales in China are higher than the previous quarter.
200-day MA is moving up a bit, which is positive. However, the price fell below that 200-day in April (as did a lot of stocks). About 30% below March highs. Always commands a premium valuation due to brand. Fallen below 200-week MA. Paying 30x forward PE, but only 8-9% earnings growth for next 3 years.
Recovery's been slow. Depends on consumer, especially in China. Long term, great name. Wait for better opportunity.
Price today is back where it was in 2019, with a very broad sideways motion and trading range since then. The move from $116 to $76 this year was a huge drop, it really fell apart. Has recovered a bit, but volume is drying up. On any rally, you want to see some good volume. Resistance around $100, so if it breaks above that then it's in a new upward trend. Look elsewhere for now.
Revenue topped, but same-store sales fell short and earnings were soft, though due to a tax charge. Just reported. He considers the overall report good. The CEO is doing a fine turnaround which is why he's holding onto his shares. North America and China same-store sales beat, but was flat internationally. True, numbers have been choppy in recent quarters. In-store sales experience is improving with faster transaction times in the US, their core business and core market. Their long-term turnaround plan is ahead of schedule.
Still a core holding. Turnaround well underway with new CEO. Looking for earnings to stabilize this year, and go up 30-40% in 2026.