Related posts
TSX climbs on BoC cut, Wall Street fadesTSX, tech climbInflation data lifts markets, Starbucks shake-upThis summary was created by AI, based on 26 opinions in the last 12 months.
Starbucks (SBUX) has undergone significant changes since appointing a new CEO known for turning around Chipotle, focusing on improving throughput and restoring the brand's coffee house experience. Analysts are optimistic about the company's potential for double-digit growth next year and believe that the early stages of a turnaround are promising. However, concerns linger regarding high debt levels, competition, and weak store traffic—particularly in China, which remains a crucial market. Despite an initial surge in share prices post-CEO change, there are mixed sentiments about the stock's value, with some analysts expressing caution as the company navigates its challenges. The upcoming earnings report will be critical in establishing whether the turnaround is taking shape as expected, as guidance is trending lower while analysts' expectations for performance appear conservative.
Buy on this pullback. This was down 13% in 2022, and 2% in 2023 and another 2% this year. It's rare for SBUX to be down three straight years. We'll know when they report Jan. 28 if the turnaround is working. They will do $1 billion in revenue, -1% YOY, $1.12 billion in EBIT or -23% YOY. Analyst expectations are very low. Shares are trading at their 10-year median valuation. They just hired the best QSR CEO who will turn things around. At $80-65, he will add a lot more shares.
Shares are up 27% after they changed CEOs, but some analysts aren't sold. Bears say turnarounds take time and are expensive, and earnings estimates need to come down. He agrees with the bulls who feel that operating margins will improve, though earnings estimates need to come down. He has a large position, but hasn't sold a share on the CEO news. He expects either flat or weak earnings next year, but is willing to hold on as long the company comes out better the following year.
Technically, great that it's broken above the 200-day MA, but that's still trending lower. Stock's gapped up. On his watchlist. Concerns about China, its second-largest market.
Investors should be cautious about the new-CEO effect. They need to execute. Stock moving higher is a hope for execution. Not cheap at this point, 2.9x PEG.
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
In the last year, 33 stock analysts published opinions about SBUX-Q. 12 analysts recommended to BUY the stock. 9 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Starbucks.
Starbucks was recommended as a Top Pick by on . Read the latest stock experts ratings for Starbucks.
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.
33 stock analysts on Stockchase covered Starbucks In the last year. It is a trending stock that is worth watching.
On 2025-04-01, Starbucks (SBUX-Q) stock closed at a price of $98.23.
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.