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Investor Insights

This summary was created by AI, based on 15 opinions in the last 12 months.

The experts have mixed opinions about Starbucks (SBUX). While some see it as a great franchise with strong international expansion plans and a good opportunity to buy at a lower valuation, others are concerned about its struggles in China and slow growth. However, there is consensus around the belief that the stock has potential for growth, especially with expectations of earnings and revenue growth over the next few years. Overall, the company's strong brand name and solid financials make it an attractive investment option.

Consensus
Mixed
Valuation
Fair Value
BUY
Starbucks

This has been weak, partially due to weak sales in China, but last week Elliott Management, an activist investor, came in. They inspire him to buy. When Elliott fixes SBUX shares will top $90-100.

food services
DON'T BUY
Starbucks

It's no longer great to do business in China, where SBUX has a lot of operations. Shares are -24% YTD.

food services
BUY ON WEAKNESS
Starbucks

Current share price weak - company in the penalty box. China market not helping generate sales. Expecting Howard Schultz to come back and fix the business. Earnings are also expected to rise. 

food services
PAST TOP PICK
Starbucks
(A Top Pick Jun 12/23, Down 15%)

Sold, based on disappointing recent earnings report. Lowered guidance for the full year, which prompts him to get out of the name and ask questions later. 4% decline in global same-store sales, 11% drop in China. Missed expectations. Channel of lower highs and lower lows since mid-2023, technically not great. Trading below 200-day MA, which itself is moving lower.

Sees 12% growth rate going forward, but now they have to fix what's happening in China. Geopolitical issues are affecting consumers globally. Brand continues to be iconic long term. He can see a point when he'd get back in, but not today.

food services
BUY ON WEAKNESS
Starbucks

Stock too cheap. However, have to been realistic about turnaround time. Will take time. 

food services
PAST TOP PICK
Starbucks
(A Top Pick May 04/23, Down 27%)

Absolutely disappointing. Economic recovery in China is affecting shares, plus global geopolitical issues. Broken below some serious support levels. Still strong global brand recognition, international footprint. Continues to transform digital aspects.

For the time being, might be a tough go before they can turn it around. He still holds, but it's broken a couple of quant measures: stop losses, plus earnings below his threshold of negative surprise. After the show, he's going back to the office to take a really close look at it.

food services
WATCH
Starbucks

It reports Tuesday. Has China gotten better? How's their labour situation? Has the Gaza boycott impacted their numbers (like it did last night)? He's nervous.

food services
TOP PICK
Starbucks

Current share price is a good entry point. New CEO is making good changes. Increasing EPS, top line revenue and store sales growth. Guidance is trending lower, which makes good time to buy. China a concern - but expecting a recovery. $85 share price a great place to buy - expecting $100 share price going forward. 

food services
DON'T BUY
Starbucks

Not a fan of capital structure. Grown debt significantly from $1.5B to 13B. Negative net worth. High payout ratio. Strong buyback program. Poster child for bad capital allocation. Not the way to grow into quality stats.

food services
BUY
Starbucks
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

 SBUX is a highly dominant consumer brand and is now trading at 20.5x times' Forward P/E (historical averages range from 20.7x to 32x). In the last few years, revenue growth was solid at low double-digits, but the share price has been under pressure recently due to the exposure to China’s market, which has experienced a slowdown in consumer spending. The balance sheet is slightly leveraged with $21.1B in net debt and net debt/EBIT is around 2.1x which is still under control. Due to capital investment to expand store count, SBUX is expected to grow its EPS around 15% this year, which is quite healthy. The company has grown its dividend consistently by around 10% per annum in the last five years. We think SBUX is quite cheap now and would be comfortable buying here. 
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food services
BUY
Starbucks
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

SBUX is trading at 22.4x Forward P/E, at the lower end compared to historical valuations that range from 22.0x to 32x over the last few years.

The share price has been relatively flat in the last few years due to a drop in valuation multiple from 30x, and SBUX has struggled to grow earnings in recent years, largely due to a slowdown in China’s market. Every now and then, SBUX brought its founder back to run things more efficiently. SBUX is still a great franchise  SBUX is not a screaming buy, but it looks attractive here given it is trading at the lower end of historical valuations. The company is expected to grow its topline by 9% over the next few years. We are okay to add some here.
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food services
TOP PICK
Starbucks

China sales are down, and China's a huge market for them. Seems to be no price point at which customers will not pay for a pumpkin spice chai latte. Has maintained its prestige. When he travels, he looks for the local Starbucks. Service is amazing. 

Generates high margins through the app. Growing revenues at close to 10% per year, next 2 years expects earnings to rise by 25%. Stock's weak, here's the opportunity, no one like them in the world. Yield is 2.4%.

(Analysts’ price target is $108.06)
food services
WAIT
Starbucks

Pressures include cash-strapped consumers in China; and some American shave been scared away from Starbucks off by pro-Palestinian protestors who don't realize that Starbucks has no real connection to Israel. IF SBUX's next numbers are weak, the street will conclude that the consumer is trading down from $5 coffee. Wait till their report, though. Is a great brand.

food services
BUY
Starbucks
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We don’t think negative shareholder equity is a big issue (only problematic for unprofitable companies that need to raise capital to survive). It is just an accounting quirk really as SBUX has repurchased shares aggressively in the past. The company’s operations appear to be out of track once every few years, as management focuses on short-term results instead of customer experience. The founder comes back to reorganize the business once in a while. Based on consensus estimates, sales are expected to grow by 8% over the next few years. Overall, we think SBUX is quite attractive here. Food and beverage overall is a tough industry to be successful in year after year, but given its strong brand name, and attractive valuation, we would be okay to add some here. It has strong international expansion plans and based on consensus estimates we think it could rise north of $100 in the next 12 months. 
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food services
BUY ON WEAKNESS
Starbucks
Starbucks vs. Dutch Bros. and the effect of China

Dutch Bros. grew way too fast. SBUX has a problem in China and the U.S. given the Israel-Hammas war. SBUX will miss its next report given weakness in China and the U.S. So buy SBUX $5 lower, because China is reawakening from its slumber and will come back.

food services
Showing 1 to 15 of 373 entries

Starbucks(SBUX-Q) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 14

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 16

Stockchase rating for Starbucks is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Starbucks(SBUX-Q) Frequently Asked Questions

What is Starbucks stock symbol?

Starbucks is a American stock, trading under the symbol SBUX-Q on the NASDAQ (SBUX). It is usually referred to as NASDAQ:SBUX or SBUX-Q

Is Starbucks a buy or a sell?

In the last year, 16 stock analysts published opinions about SBUX-Q. 14 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Starbucks.

Is Starbucks a good investment or a top pick?

Starbucks was recommended as a Top Pick by on . Read the latest stock experts ratings for Starbucks.

Why is Starbucks stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Starbucks worth watching?

16 stock analysts on Stockchase covered Starbucks In the last year. It is a trending stock that is worth watching.

What is Starbucks stock price?

On 2024-07-25, Starbucks (SBUX-Q) stock closed at a price of $74.46.