SBUX Updating Our Rating on Starbucks Ahead of 7.25 Earnings Release

By Mark Kalinowski Published on July 18, 2019 at 12:00 AM

Ahead of Starbucks’ (SBUX) fiscal Q3 earnings release scheduled for after the market close on Thursday, July 25th, we upgrade SBUX to Buy (from Neutral). Some of the concerns we had 3-6 months ago have been alleviated to a meaningful degree, including (1) the possibility that a serious run for office by former CEO Howard Schultz could have an adverse effect on the business; Mr. Schultz has put his campaign on hold which significantly alleviates this risk, and (2) concerns about competition in China — public filings by Luckin Coffee (LK; Not Rated) — which had its IPO this past May — give us a greater comfort level that near-term competitive threats in this key growth market can be fought off.

Tidbits re SBUX, Applebee’s (owned by DIN), DNKN, and CMG

By Mark Kalinowski Published on January 27, 2019 at 12:00 AM

We briefly note the following tidbits regarding Starbucks (SBUX; Neutral), Applebee’s (owned by Dine Brands [DIN; Buy]), Dunkin’ (owned by Dunkin’ Brands Group [DNKN; Neutral]), and Chipotle Mexican Grill (CMG; Not Rated):

SBUX Updating Our Fiscal Q1E Forecasts Ahead of 1.24 Earnings Release

By Mark Kalinowski Published on January 22, 2019 at 12:00 AM

Ahead of Starbucks’ (SBUX; Neutral) planned fiscal Q1 2019 (calendar Q4 2018) earnings release planned for after the market close this Thursday (January 24th), we raise our fiscal Q1 same-store sales forecast for the Americas (and the U.S.) by one percentage point, to +4%, placing us above sell-side consensus (as measured by Consensus Metrix) of +3%. The raised forecast has the effect of increasing our Q1E EPS projection by one cent, to $0.66, also placing us one cent above sell-side consensus of $0.65. Our full-fiscal 2019E EPS forecast goes up by $0.01, to $2.66. Given this slightly higher anticipated base of earnings coming off of fiscal 2019, our fiscal 2020E EPS estimate rises by $0.01, to $3.01. We reiterate our Neutral rating on SBUX.