Added to YB: 2024-05-03
Pitch date: 2024-05-02
SBUX [bullish]
Starbucks Corporation
+34.12%
current return
Author Info
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Company Info
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally.
Market Cap
$109.1B
Pitch Price
$71.43
Price Target
95.00 (-1%)
Dividend
2.59%
EV/EBITDA
14.68
P/E
79.77
EV/Sales
3.47
Sector
Hotels, Restaurants and Leisure
Category
value
Starbucks Corporation – One of its worst quarters ever, but still a buy
SBUX: Q2 earnings disappoint across all metrics; revenue -1.8% YoY, EPS -7%, China recovery slower. Long-term thesis intact: globally recognized brand, 33M loyalty members +6% YoY, store optimization & expansion opportunities. FY24 guidance lowered significantly, now projecting low single digit rev growth & flat EPS. Shares oversold at 20x P/E (5Y avg 25x), $95 PT for 17.5% annual return + 3% yield. Maintaining buy on dip.
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