Consumer Discretionary

Starbucks’ (SBUX) shares rose 10% in recent Thursday trading after the company reported fiscal Q4 non-GAAP earnings of $1.06 per share, up from $0.81 a year earlier. Analysts polled by Capital IQ expected $0.97. Net revenue in the quarter ended Oct. 1 was $9.37 billion, up from $8.41 billion a year earlier. Analysts surveyed by Capital IQ expected $9.28 billion. Comparable-store sales rose 8% worldwide, the company said. Analysts polled by Capital IQ expected 7% growth.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We trim our 12-month target price to $107 from $110, 26.4x our FY 24 (Sep.) EPS, a discount to SBUX’s five-year average forward P/E of 31.2x. We raise our FY 24 EPS to $4.06 from $4.00 and we initiate FY 25 at $4.63. SBUX posted FQ4 (Sep.) EPS of $1.06, $0.09 above consensus. Revenue of $9,374M (+11.4% Y/Y) was $93M above consensus. Operating income grew 34.1% Y/Y to $1,707M, with margin expanding 310 bps Y/Y to 18.2% vs. the 17.3% consensus. SBUX exceeded expectations, with comp sales up 8% vs. the 7% consensus, on top of transaction growth across all major regions, including China. Despite SBUX’s clean beat, FY 24 EPS guidance was left unchanged and FY 24 comp sales guidance was revised down (mid-point at +6%

Starbucks says in an investor update that it aims to grow to 20,000 US stores in the long term, up from about 16,350 today. The coffee chain reaffirmed previous targets to grow to 55,000 global stores by 2030. It aims to build more stores for specific means of ordering, such as delivery or pickup. The chain says it also aims to find $3 billion in cost savings, with $2 billion of it coming in its supply chain. Starbucks closed up 9.5% after it reported 4Q earnings this morning that exceeded expectations.

‘To be clear, Starbucks has not saturated the U.S. market,’ executive says Starbucks’ abundance of stores stopped being a punchline years ago. But the coffee chain on Thursday said there was, somehow, still room for even more of them. Starbucks Corp. (SBUX) on Thursday said it wants to have 55,000 stores around the world by 2030, with plans to open new kinds of stores in the U.S. dedicated to pick-up and drive-through. The chain currently has a little more than 38,000 stores globally. Those plans were announced as part of a broader initiative for the years ahead that included targets for $3 billion in savings, another 75 million rewards members and a bump in worker hours, wages and other incentives. More Starbucks customers are doing more business via its app — for cold beverages, food and to-go orders. But the company has faced questions about demand, amid higher prices for

Starbucks Q4 Adj. EPS $1.06; FactSet Consensus 97 Cents.