Starbucks

SBUX-Q

NASDAQ:SBUX

80.67
1.52 (1.85%)
Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of November 2016, it operates 23,768 locations worldwide.
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Analysis and Opinions about SBUX-Q

Signal
Opinion
Expert
VAGUE
VAGUE
July 4, 2018

Over three years, it's been sideways. He sold his shares because valuations were stretched. The CFO is retiring, they're shutting some US stores, and strong competition overseas. True, they've gotten into juices and other areas which has helped, but consumers can always switch to another brand. Be careful with this now. Watch their next report; their last quarter was weak.

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Starbucks (SBUX-Q)
July 4, 2018

Over three years, it's been sideways. He sold his shares because valuations were stretched. The CFO is retiring, they're shutting some US stores, and strong competition overseas. True, they've gotten into juices and other areas which has helped, but consumers can always switch to another brand. Be careful with this now. Watch their next report; their last quarter was weak.

DON'T BUY
DON'T BUY
May 24, 2018

Owned it and sold it a while ago. Great franchise. Great name. Valuation is pricey. He doesn’t see a catalyst for the next leg up for this particular name.

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Starbucks (SBUX-Q)
May 24, 2018

Owned it and sold it a while ago. Great franchise. Great name. Valuation is pricey. He doesn’t see a catalyst for the next leg up for this particular name.

PAST TOP PICK
PAST TOP PICK
April 5, 2018

(A Top Pick April 27, 2017, Down 2%) Has underperformed for three years. It's been in a tight $59-68 range. Still loves the name. The market's love will return, though he won't increase his holdings. Earnings are up. PE is nearly 24x forward. It does well through bad economic times. It's one of his biggest holdings. Doesn't feel their stores are oversaturating markets.

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Starbucks (SBUX-Q)
April 5, 2018

(A Top Pick April 27, 2017, Down 2%) Has underperformed for three years. It's been in a tight $59-68 range. Still loves the name. The market's love will return, though he won't increase his holdings. Earnings are up. PE is nearly 24x forward. It does well through bad economic times. It's one of his biggest holdings. Doesn't feel their stores are oversaturating markets.

HOLD
HOLD
March 12, 2018

Makes sense as a long-term hold. Locally, we'll see more competition. It'll continue to grow globally. Innovative on the product side, such as introducing alcohol sales at night. One problem is that the CEO left came back and now gone. Investors ask, How is it going to be run? Markets are waiting.

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Starbucks (SBUX-Q)
March 12, 2018

Makes sense as a long-term hold. Locally, we'll see more competition. It'll continue to grow globally. Innovative on the product side, such as introducing alcohol sales at night. One problem is that the CEO left came back and now gone. Investors ask, How is it going to be run? Markets are waiting.

COMMENT
COMMENT
January 31, 2018

Over time, this has been a good holding. However, it’s had a very volatile year since 2016. Partly because the restaurant group has not been in favour, and partly because the company has his own issues. They've grown their dividend 24%-25% a year over the last 4 years. However, this is a sector that is not terribly economically sensitive. If you are going to be in the consumer sector, he would prefer something that is in the travel/leisure space, and would look at a Marriott (MAR-Q) or a Carnival Cruise Lines (CCL-N).

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Starbucks (SBUX-Q)
January 31, 2018

Over time, this has been a good holding. However, it’s had a very volatile year since 2016. Partly because the restaurant group has not been in favour, and partly because the company has his own issues. They've grown their dividend 24%-25% a year over the last 4 years. However, this is a sector that is not terribly economically sensitive. If you are going to be in the consumer sector, he would prefer something that is in the travel/leisure space, and would look at a Marriott (MAR-Q) or a Carnival Cruise Lines (CCL-N).

COMMENT
COMMENT
January 30, 2018

This has done extremely well. It’s always been a fairly high valued company. Because of that, he has stayed away, but has a great deal of respect for the franchise and what they’ve done. China is doing extremely well for them, and is very exciting. However, domestic operations in the US, and to some extent in Canada, are suffering from a lack of traffic. If it was a lower multiple company, he might be a little more excited, but there are too many other exciting opportunities.

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Starbucks (SBUX-Q)
January 30, 2018

This has done extremely well. It’s always been a fairly high valued company. Because of that, he has stayed away, but has a great deal of respect for the franchise and what they’ve done. China is doing extremely well for them, and is very exciting. However, domestic operations in the US, and to some extent in Canada, are suffering from a lack of traffic. If it was a lower multiple company, he might be a little more excited, but there are too many other exciting opportunities.

BUY
BUY
December 12, 2017

It is brilliant. It will carry on. It is innovated. Nobody will ever catch it up.

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Starbucks (SBUX-Q)
December 12, 2017

It is brilliant. It will carry on. It is innovated. Nobody will ever catch it up.

BUY
BUY
November 6, 2017

They are expecting 17% earnings growth next year. She likes it right now because it is not really in favour. It looks like a nice attractive value. This is a good buying opportunity.

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Starbucks (SBUX-Q)
November 6, 2017

They are expecting 17% earnings growth next year. She likes it right now because it is not really in favour. It looks like a nice attractive value. This is a good buying opportunity.

BUY WEAKNESS
BUY WEAKNESS
November 2, 2017

Just reported earnings after the close, and thinks they missed on some of their numbers. This company has a very unique brand, and has room to grow internationally. There is certainly lots of international expansion. They are unique in that if there is change, they understand that they have to change, and have been able to do that effectively. On a decent pullback, he would Buy this.

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Starbucks (SBUX-Q)
November 2, 2017

Just reported earnings after the close, and thinks they missed on some of their numbers. This company has a very unique brand, and has room to grow internationally. There is certainly lots of international expansion. They are unique in that if there is change, they understand that they have to change, and have been able to do that effectively. On a decent pullback, he would Buy this.

COMMENT
COMMENT
October 6, 2017

Valuation has been excessive for a while. Same-store sales growth in the last little couple of quarters has been slowing down. Their expansion has started to get a few headwinds. Did a fantastic job of reorienting their company a couple of years ago, and the stock reflected that. Not sure he would be jumping in at this time. There is too much competition in this market.

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Starbucks (SBUX-Q)
October 6, 2017

Valuation has been excessive for a while. Same-store sales growth in the last little couple of quarters has been slowing down. Their expansion has started to get a few headwinds. Did a fantastic job of reorienting their company a couple of years ago, and the stock reflected that. Not sure he would be jumping in at this time. There is too much competition in this market.

BUY
BUY
August 30, 2017

This has been a frustrating year. He is buying and averaging down. There are 2 parts to the story. There is the domestic story. They came out with some revenue and growth rates in North America that people were not expecting. Thinks it is going through a soft landing. We are used to the high growth rates which is coming down a little. The real story is the China side, where they have 2600 stores and are adding 500 stores a year. As long as China/US relations stay good, he believes this company will continue to see great rewards out of that region. The drop in the stock price is a good buying opportunity.

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Starbucks (SBUX-Q)
August 30, 2017

This has been a frustrating year. He is buying and averaging down. There are 2 parts to the story. There is the domestic story. They came out with some revenue and growth rates in North America that people were not expecting. Thinks it is going through a soft landing. We are used to the high growth rates which is coming down a little. The real story is the China side, where they have 2600 stores and are adding 500 stores a year. As long as China/US relations stay good, he believes this company will continue to see great rewards out of that region. The drop in the stock price is a good buying opportunity.

HOLD
HOLD
August 28, 2017

They have tried very hard to have card holders. 45% of transactions are now done on a non-credit card/non-cash basis. It helps them cut costs. The growth will be international. The stock has trended sideways for a while.

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Starbucks (SBUX-Q)
August 28, 2017

They have tried very hard to have card holders. 45% of transactions are now done on a non-credit card/non-cash basis. It helps them cut costs. The growth will be international. The stock has trended sideways for a while.

BUY
BUY
August 24, 2017

He trimmed some after owning it for a long time. He thinks it is about ready to go again. It is a case of getting money to flow into that sector. It’s an international story.

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Starbucks (SBUX-Q)
August 24, 2017

He trimmed some after owning it for a long time. He thinks it is about ready to go again. It is a case of getting money to flow into that sector. It’s an international story.

DON'T BUY
DON'T BUY
August 24, 2017

SBUX-T vs. QSR-N. He sold SBUX-T because the same store sales were weakening and that is happening for QSR-T as well. Both are not too cheap. There are headwinds in theses names.

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Starbucks (SBUX-Q)
August 24, 2017

SBUX-T vs. QSR-N. He sold SBUX-T because the same store sales were weakening and that is happening for QSR-T as well. Both are not too cheap. There are headwinds in theses names.

HOLD
HOLD
August 23, 2017

Price momentum is not great. Valuation is not fantastic at 14 times. They issue a bit on the last quarter. They just were not able to grow at the previous pace.

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Starbucks (SBUX-Q)
August 23, 2017

Price momentum is not great. Valuation is not fantastic at 14 times. They issue a bit on the last quarter. They just were not able to grow at the previous pace.

COMMENT
COMMENT
August 21, 2017

When a big US name goes up he wonders if Amazon is going into their space. It is a high price. They are spending a lot on defensive strategies to knock out the competition.

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Starbucks (SBUX-Q)
August 21, 2017

When a big US name goes up he wonders if Amazon is going into their space. It is a high price. They are spending a lot on defensive strategies to knock out the competition.

COMMENT
COMMENT
August 16, 2017

Feels this is transitioning from a very high growth company to a slower growth, and that it is fully valued.

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Starbucks (SBUX-Q)
August 16, 2017

Feels this is transitioning from a very high growth company to a slower growth, and that it is fully valued.

HOLD
HOLD
August 1, 2017

(Market Call Minute.) A great company, and he would classify it as a Weak Buy to a Hold. If it dropped another 10% he would definitely be a buyer.

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Starbucks (SBUX-Q)
August 1, 2017

(Market Call Minute.) A great company, and he would classify it as a Weak Buy to a Hold. If it dropped another 10% he would definitely be a buyer.

Alex Ruus

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Price
$54.730
Owned
Unknown
COMMENT
COMMENT
July 7, 2017

Discretionary, as a whole, has really struggled. It tends to be more idiosyncratic in that it is more sub-sector focused. Within restaurants and hotels, it has been great. This company has really come back, however it has pulled back pretty substantially from the $65 price, so technically, you might be a little wary. The group is neutral. It’s not the best neighbourhood to be looking in. He would prefer a McDonald’s (MCD-N) at this time, which has more fundamental levers.

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Starbucks (SBUX-Q)
July 7, 2017

Discretionary, as a whole, has really struggled. It tends to be more idiosyncratic in that it is more sub-sector focused. Within restaurants and hotels, it has been great. This company has really come back, however it has pulled back pretty substantially from the $65 price, so technically, you might be a little wary. The group is neutral. It’s not the best neighbourhood to be looking in. He would prefer a McDonald’s (MCD-N) at this time, which has more fundamental levers.

PARTIAL BUY
PARTIAL BUY
July 4, 2017

A great business. They’ve done an excellent job at creating a cult-like following. Started with the Starbucks card, and more than a 3rd of all transactions are done with the card. They are innovating. The mobile order and pay has really taken off. Some locations also have wine and beer. It is not just a coffee shop, it’s a coffee shop that is continuing to innovate and work itself into different occasions. However, you pay a high multiple for it, but he thinks it is worth it. Trading at about 28X with a yield of about 1.8%. You could take a half position and wait for some weakness.

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Starbucks (SBUX-Q)
July 4, 2017

A great business. They’ve done an excellent job at creating a cult-like following. Started with the Starbucks card, and more than a 3rd of all transactions are done with the card. They are innovating. The mobile order and pay has really taken off. Some locations also have wine and beer. It is not just a coffee shop, it’s a coffee shop that is continuing to innovate and work itself into different occasions. However, you pay a high multiple for it, but he thinks it is worth it. Trading at about 28X with a yield of about 1.8%. You could take a half position and wait for some weakness.

COMMENT
COMMENT
June 22, 2017

This has built a great franchise, and the franchise is becoming much more global. They are very unique in that they are very open to making changes when it is necessary, not only for their coffee, but also how they treat clients. There is still a lot of opportunity for them to grow globally. A good story.

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Starbucks (SBUX-Q)
June 22, 2017

This has built a great franchise, and the franchise is becoming much more global. They are very unique in that they are very open to making changes when it is necessary, not only for their coffee, but also how they treat clients. There is still a lot of opportunity for them to grow globally. A good story.

HOLD
HOLD
June 9, 2017

He likes this. A great brand name. At this point, he is just a little more skeptical. The valuation is so high. It is just saturated with growth. You are paying a lot, and you are not going to have quite the growth potential a decade ago.

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Starbucks (SBUX-Q)
June 9, 2017

He likes this. A great brand name. At this point, he is just a little more skeptical. The valuation is so high. It is just saturated with growth. You are paying a lot, and you are not going to have quite the growth potential a decade ago.

COMMENT
COMMENT
May 30, 2017

One of his absolute favourite names. This is breaking out of the range it was in. Thinks the new real story on this is their food comps. Feels their food is going to add $8-$12 in share price in the next 12 months. They are growing with new stores and with suggestive selling.

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Starbucks (SBUX-Q)
May 30, 2017

One of his absolute favourite names. This is breaking out of the range it was in. Thinks the new real story on this is their food comps. Feels their food is going to add $8-$12 in share price in the next 12 months. They are growing with new stores and with suggestive selling.

TOP PICK
TOP PICK
May 9, 2017

He likes consumer names in areas where the middle class is growing, which is Asia. About 14% of their stores are in Asia. The company is going to see nice, double digit earnings growth, driving high margin expansion. He likes their global exposure. Dividend yield of 1.6%. (Analysts’ price target is $66.)

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Starbucks (SBUX-Q)
May 9, 2017

He likes consumer names in areas where the middle class is growing, which is Asia. About 14% of their stores are in Asia. The company is going to see nice, double digit earnings growth, driving high margin expansion. He likes their global exposure. Dividend yield of 1.6%. (Analysts’ price target is $66.)

HOLD
HOLD
May 4, 2017

It would be okay as a dividend grower. But these stocks get to a point of saturation so he questions the growth rate. However, it is a safe stock. Do not expect it to appreciate much. The growth phase is over and it is dead money. It will be difficult for this company to grow. The coffee at Tim Horton’s is just as good.

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Starbucks (SBUX-Q)
May 4, 2017

It would be okay as a dividend grower. But these stocks get to a point of saturation so he questions the growth rate. However, it is a safe stock. Do not expect it to appreciate much. The growth phase is over and it is dead money. It will be difficult for this company to grow. The coffee at Tim Horton’s is just as good.

TOP PICK
TOP PICK
April 27, 2017

He was disappointed after the market today, but that is an opportunity for anyone who wants to pick this up tomorrow. They had a big issue with congestion in mobile ordering, but that is a good problem to have. Have all kinds of developments in cold and fresh food. Dividend yield of 1.6%. (Analysts’ price target is $65.)

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Starbucks (SBUX-Q)
April 27, 2017

He was disappointed after the market today, but that is an opportunity for anyone who wants to pick this up tomorrow. They had a big issue with congestion in mobile ordering, but that is a good problem to have. Have all kinds of developments in cold and fresh food. Dividend yield of 1.6%. (Analysts’ price target is $65.)

PAST TOP PICK
PAST TOP PICK
April 24, 2017

(Top Pick Nov 9/16, Up 13%) You can own it for the long term. They are 15 years behind McDonalds. They are reacting well to changing trends. It was going sideways for about a year and is still off its peak so there is plenty of opportunity.

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Starbucks (SBUX-Q)
April 24, 2017

(Top Pick Nov 9/16, Up 13%) You can own it for the long term. They are 15 years behind McDonalds. They are reacting well to changing trends. It was going sideways for about a year and is still off its peak so there is plenty of opportunity.

DON'T BUY
DON'T BUY
April 6, 2017

Held this for about 2-2.5 years, and just sold his holdings recently. Valuations were getting a little rich. Trading at 26X forward earnings. Although the long-term growth rate is around 15%, the PEG ratio is still going to be up around .6X. More importantly, same-store sales have slowed to its lowest pace since 2009. A great franchise, and long term they will do well by going to the international markets.

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Starbucks (SBUX-Q)
April 6, 2017

Held this for about 2-2.5 years, and just sold his holdings recently. Valuations were getting a little rich. Trading at 26X forward earnings. Although the long-term growth rate is around 15%, the PEG ratio is still going to be up around .6X. More importantly, same-store sales have slowed to its lowest pace since 2009. A great franchise, and long term they will do well by going to the international markets.

COMMENT
COMMENT
March 15, 2017

Trading at one of the lowest premiums to the S&P than it has for a long time. A great business. Very strong brand. Have had some operational issues lately, partly to do with their North American operations; the new mobile app and issues it has created in the stores. They are working through that. Also, China is very important for them. Generates great returns. Well run and getting cheaper than what it was. Still not cheap though. When he thinks it is appropriate, he will Buy. Dividend yield of 1.8%.

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Starbucks (SBUX-Q)
March 15, 2017

Trading at one of the lowest premiums to the S&P than it has for a long time. A great business. Very strong brand. Have had some operational issues lately, partly to do with their North American operations; the new mobile app and issues it has created in the stores. They are working through that. Also, China is very important for them. Generates great returns. Well run and getting cheaper than what it was. Still not cheap though. When he thinks it is appropriate, he will Buy. Dividend yield of 1.8%.

COMMENT
COMMENT
March 9, 2017

Owned this for a couple of years, and just sold it off this past week. He is shifting away from some of the growthier high PE names to the value side. This is a great franchise and are diversifying into other markets globally, but it is trading at a multiple of 25X forward earnings. Also, same-store sales have slowed to the lowest level since 2009.

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Starbucks (SBUX-Q)
March 9, 2017

Owned this for a couple of years, and just sold it off this past week. He is shifting away from some of the growthier high PE names to the value side. This is a great franchise and are diversifying into other markets globally, but it is trading at a multiple of 25X forward earnings. Also, same-store sales have slowed to the lowest level since 2009.

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