Added to YB: 2024-05-07
Pitch date: 2024-05-01
SBUX [bullish]
Starbucks Corporation
+33.35%
current return
Author Info
No bio for this author
Company Info
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally.
Market Cap
$103.0B
Pitch Price
$71.08
Price Target
N/A
Dividend
2.74%
EV/EBITDA
13.99
P/E
75.28
EV/Sales
3.31
Sector
Hotels, Restaurants and Leisure
Category
growth
Starbucks shares: buy or not? This is how it continues after the strong price setback
SBUX: Hit by weak Q1'24. Sales -2% on comp -4%, inflation & less frequent visits. EBIT 12.8% (vs 15.2%). EPS $0.68 (vs $0.79). Lowered '24 guide: Low-single digit rev (was 8.5%), stable EBIT margin & EPS (was 15-20% EPS growth). Plans: Open app, digital menus, snack options to lure back customers. US holding up but China sales/traffic down. At $78, -40% from high, challenges priced in. Switch to franchise in China unlocks value. Attractive LT story at 18x P/E.
Read full article (20 min)