Starbucks

TD Cowen analyst Agnes Lim reiterates Starbucks (NASDAQ:SBUX) with a Market Perform and maintains $102 price target.

Starbucks’s CEO and board chairwoman are expected to address shareholders by noting the brand’s resolve in operating in difficult times. “We face a complicated operating environment, and some challenging headwinds that will take some time to resolve,” CEO Laxman Narasimhan said in prepared remarks expected to be delivered to shareholders. Consumers in the U.S. and Europe are grappling with difficult pressures, making value particularly important for brands. Narasimhan said that the company has the right team and plan in place to move forward.

Citigroup analyst Jon Tower maintains Starbucks (NASDAQ:SBUX) with a Neutral and lowers the price target from $103 to $102.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We cut our 12-month target to $102 from $107, 25.2x our FY 24 (Sep.) EPS, below SBUX’s five-year average forward P/E of 31.2x. We trim our FY 24 EPS to $4.04 from $4.06 but raise FY 25’s to $4.65 from $4.63. SBUX posted FQ1 (Dec.) EPS of $0.90, $0.04 below consensus. Revenue of $9,425M (+8.2% Y/Y) was $200M below consensus. Operating income rose to $107M, with margin widening 130 bps Y/Y to 15.8%, in line with consensus. SBUX cut its FY 24 comp sales guidance, as U.S. traffic softened (+1% comp transactions). International also suffered from issues in the Middle East and a sluggish recovery in China, which heightened pricing competition (-7% comp average ticket). However, we’re positive on SBUX’s pricing power in the U.S. (+4% comp

Starbucks wants to make occasional customers into regulars. It saw unexpected headwinds in 1Q, with one factor being occasional U.S. customers who tend to visit stores in the afternoon came in less frequently. Starbucks implemented targeted offers aimed at bringing those customers into its loyalty program, which it says has been shown to create a long-term relationship that increases both ticket and transactions. CEO Laxman Narasimhan says the initiatives have led to more occasional customers beginning to rebound in December. “We feel good about the trajectory over the course of the quarter, but it will take time for our plans to be fully realized,” Narasimhan says.

Starbucks attributes its portfolio of cold beverages to a shift in generational taste preferences in response to a question on its earnings call. An analyst, who estimates that since 2016 US cold drink sales have grown while hot drink sales have declined, asks if Starbucks has less of an everyday hot drink customer and more of a new type of customer who comes in less frequently and opts for cold drinks. CMO Brady Brewer notes that the coffee chain doesn’t see a trade-off in frequency between cold beverage customers and hot beverage customers. He adds that with cold beverages there are infinite possible customizations, offering a great opportunity. “On hot beverage, I would say we’re not leaving that customer behind. We’re continuing to innovate on hot beverages,” says Brewer.

Starbucks’ (SBUX) fiscal Q1 results and the accompanying commentary were more “constructive” than expected, while the early part of Q2 presents challenging trends in China and the Middle East, Morgan Stanley said Wednesday in a report. Starbucks acknowledged hurdles in its Middle East licensed business due to boycotts of US brands, and the company previously cited China concerns, Morgan Stanley said. The company is introducing product innovations to address these issues in the short term, though same-store sales assumptions were adjusted downward, the report said. Starbucks expects low single-digit percentage growth in China’s same-store sales for the rest of the year, down from 4% to 6% anticipated previously, and Q2 expectations are lower, likely flat or negative, before a potential improvement in H2, the report said. North American same-store sales grew 5% in Q1, topping estimates by investors, the report said. “Starbucks called out the strength of its most loyal

Starbucks (NASDAQ:SBUX) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/31/2024 15.51% Barclays $116 → $112 Maintains Overweight 01/19/2024 3.14% Piper Sandler $107 → $100 Maintains Neutral 01/18/2024 -2.02% Wedbush $100 → $95 Maintains Neutral 01/16/2024 — Gordon Haskett Downgrades Buy → Hold 01/16/2024 23.76% Morgan Stanley $112 → $120 Upgrades Equal-Weight → Overweight 12/20/2023 10.35% HSBC → $107 Initiates Coverage On → Hold 11/06/2023 9.32% Wedbush $100 → $106 Maintains Neutral 10/23/2023 19.64% Barclays $123 → $116 Maintains Overweight 10/19/2023 21.7% Deutsche Bank → $118 Initiates Coverage On → Buy 10/12/2023 3.14% UBS $110 → $100 Maintains Neutral 10/11/2023 5.2% Morgan Stanley $104 → $102 Maintains Equal-Weight 10/05/2023 3.14% Citigroup $104 → $100 Maintains Neutral 09/25/2023 7.26% Citigroup $112 → $104 Maintains Neutral 09/22/2023 10.35% TD Cowen → $107 Reiterates Market Perform → Market Perform 09/20/2023 10.35% TD Cowen → $107

Barclays analyst Jeffrey Bernstein maintains Starbucks (NASDAQ:SBUX) with a Overweight and lowers the price target from $116 to $112.

Wedbush analyst Nick Setyan reiterates Starbucks (NASDAQ:SBUX) with a Neutral and maintains $95 price target.

Starbucks 1Q North America Same-Store Sales Up 5%。

Starbucks Reports Q1 Fiscal 2024 Results Q1 Consolidated Net Revenues Up 8% to a Record $9.4 Billion Q1 Comparable Store Sales Up 5% Globally; Up 5% in North America; Up 7% in International Q1 GAAP EPS Up 22% to $0.90; Non-GAAP EPS Up 20% to $0.90 as Reinvention Unlocks Continued Efficiency Q1 Active U.S. Starbucks(R) Rewards Membership Reaches 34.3 Million, Up 13% Over Prior Year Q1 U.S. Card Loads Reaches a Record $3.6 Billion; Ranking as #2 U.S. Brand in Holiday Gift Card Activations SEATTLE–(BUSINESS WIRE)–January 30, 2024– Starbucks Corporation (Nasdaq: SBUX) today reported financial results for its 13-week fiscal first quarter ended December 31, 2023. GAAP results in fiscal 2024 and fiscal 2023 include items that are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information. Q1 Fiscal 2024 Highlights — Global comparable store