Shares of Starbucks Corporation (SBUX) have declined 18.8% over the past month compared with the Zacks Retail – Restaurants industry’s fall of 8.1%. The stock has underperformed the Zacks Retail-Wholesale sector’s and the S&P 500’s decline of 8.3% and 9.7%, respectively.Investor sentiment surrounding Starbucks has been weighed down by ongoing macroeconomic uncertainty and concerns over tariff impacts, recession risks and potential international backlash against U.S. brands.SBUX's One-Month Price Performance ...

Starbucks Corporation (NASDAQ:SBUX) stock was last seen 4.4% lower to trade at $78.50, after Baird downgraded it to “neutral” from “outperform” and cut its price target to $85 from $114. The analyst in coverage cited near-term earnings uncertainty, noting that the coffee giant may struggle to hit consensus projections that depend on a same-store traffic recovery -- a trend that has recently shown signs of softening. This bear note seems overdue. SBUX sports a 14.1% year-to-date deficit and fell 11.4% over t ...

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Company Performance - Starbucks shares closed at $95.72, down 1.39% from the previous trading day, underperforming the S&P 500's gain of 1.77% [1] - Over the past month, Starbucks experienced a loss of 13.14%, compared to a 7.57% loss in the Retail-Wholesale sector and a 5.73% loss in the S&P 500 [1] Financial Projections - The upcoming earnings report is expected to show an EPS of $0.52, reflecting a 23.53% decline year-over-year [2] - Revenue is forecasted to be $8.88 billion, indicating a 3.65% growth compared to the same quarter last year [2] - For the full year, earnings are projected at $2.99 per share and revenue at $37.42 billion, representing a decline of 9.67% in earnings and a growth of 3.45% in revenue from the previous year [3] Analyst Estimates and Valuation - Recent analyst estimate revisions are linked to stock price performance, with positive revisions indicating optimism about the company's business [4] - Starbucks currently holds a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 32.45, which is higher than the industry's Forward P/E of 22.67 [5] - The PEG ratio for Starbucks is 3.07, compared to the Retail-Restaurants industry's average PEG ratio of 2.14 [6] Industry Context - The Retail-Restaurants industry has a Zacks Industry Rank of 154, placing it in the bottom 39% of over 250 industries [6] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Monumental Sports & Entertainment (MSE) has appointed AJ Jones II as Executive Vice President, Chief Strategic and Corporate Communications Officer, to enhance its corporate and investor communications strategy [1][2] - Jones brings extensive experience from Starbucks, where he held multiple leadership roles, including overseeing global communications and corporate affairs [2][3] - The appointment is part of MSE's strategy to strengthen its brand narrative and stakeholder engagement as it continues to grow in the sports and entertainment sector [1][3] Company Overview - MSE is recognized as America's leading sports and entertainment organization, focusing on delivering exceptional experiences to fans and the community [4] - The company emphasizes innovation and investment to enhance its service offerings and community engagement [4] Leadership and Strategy - AJ Jones will report directly to Ted Leonsis, the Founder and CEO of MSE, and will be integral to the leadership team [1] - The leadership believes that Jones's background in customer service and entertainment will be crucial for MSE's future growth, particularly in delivering personalized services [3]

Core Insights - Starbucks is successfully reestablishing itself as a community coffeehouse, with a significant increase in customers choosing to stay and enjoy their beverages in-store, rising more than threefold in the last three weeks [1][2] Group 1: Customer Engagement - The increase in "sit and stay" visits is part of Starbucks' strategy to reverse declining foot traffic and sales, incentivizing customers with free refills when purchasing beverages in mugs or glasses [2][3] - The company is focusing on enhancing the customer experience by investing in marketing and creating a welcoming atmosphere with comfortable seating and distinct areas for in-store and mobile orders [3][4] Group 2: Brand Transformation - Starbucks is undergoing a transformation with a rebranding initiative called "Back to Starbucks," which aims to prioritize coffee quality, support baristas, and simplify the menu while positioning itself as a community gathering space [4][5] - The company has implemented a new policy to ask individuals who do not make purchases to leave, reinforcing its commitment to creating a vibrant coffeehouse environment [3] Group 3: Market Context - Despite challenges in the food service industry, with recent census data indicating three consecutive months of no growth in food services and drinking places, analysts still see strength and opportunity in the Starbucks brand [4][5]

Core Viewpoint - Starbucks is experiencing a significant stock decline, down 15% since late February, while the broader market has only declined by 5.6% during the same period, raising questions about the company's future and investment potential [1][6]. Management and Strategy - Brian Niccol, former CEO of Chipotle, has been brought in to lead Starbucks, leveraging his turnaround expertise from previous roles at Taco Bell and Chipotle [2][3]. - Niccol aims to simplify the menu and enhance customer experience by encouraging baristas to personalize orders and eliminating extra charges for milk alternatives [4]. Financial Performance - In Niccol's first quarter, Starbucks' revenue showed signs of recovery, with a slight improvement from a 3.3% year-over-year decline to a 0.3% drop, indicating a more efficient business model [5]. - Following Niccol's hiring, Starbucks' stock reached a multi-year high of nearly $116 per share in February [5]. Market Challenges - The stock has retreated due to concerns over rising coffee prices driven by tariffs and drought conditions in Brazil, a major coffee producer [6]. - Starbucks shares are currently valued at 31.7 times trailing earnings and 38.3 times free cash flows, which is considered expensive in the current market context [7]. Competitive Landscape - Niccol faces intense competition from other coffee chains, particularly with Dutch Bros expanding nationwide, which adds pressure to Starbucks' market position [9]. - The company must leverage its global production and distribution capabilities to turn rising coffee prices into a competitive advantage [9]. Employee Relations - There are concerns regarding employee relations, with reports of "skeleton crews" in stores and median salaries below the poverty line, which could hinder long-term operational success [10]. - Niccol's history of conflicts with worker unions at Chipotle raises questions about his ability to foster a positive relationship with Starbucks employees [10]. Overall Assessment - The combination of high operational costs, fragile employee relations, and increased competition presents significant challenges for Niccol's turnaround plan, making the current stock price seem too high for the risks involved [11].

Core Points - Seventeen Starbucks partners at Alder Crossing in Surrey, B.C. have joined the United Steelworkers union (USW) Local 2009, aiming for fair treatment and stronger workplace protections [1] - The unionization is a response to new management practices that have negatively affected workplace morale, with partners expressing a lack of respect compared to previous management [2][3] - This movement reflects a broader trend among Starbucks workers in Canada seeking better wages, job security, and a voice in workplace decisions [3] Union Representation - The USW has welcomed the Alder Crossing partners, emphasizing the importance of fair treatment and the ability to negotiate improved working conditions [4] - The B.C. Labour Relations Board has approved the USW Local 2009's application to vary its certification, allowing the Alder Crossing bargaining unit to join others in Surrey, Langley, and Power River [4] - The USW represents workers at multiple Starbucks locations across British Columbia, Alberta, and Ontario, indicating a growing union presence in the region [5] Union Background - The United Steelworkers union is the largest private-sector union in North America, representing 850,000 members across Canada, the United States, and the Caribbean [6] - The USW has a strong track record in improving workplace conditions, negotiating better wages, benefits, and pensions for its members [7]

Core Viewpoint - Starbucks Corporation (SBUX) has shown a stock price increase of 10.7% over the past three months, significantly outperforming the Zacks Retail – Restaurants industry's growth of 0.1% and the declines in the Zacks Retail-Wholesale sector and S&P 500, which fell by 4.9% and 4.8% respectively [1] Group 1: Factors Favoring Starbucks Stock - The company is undergoing a transformative period with a strategic shift focused on revitalizing its brand and operations, particularly through the "Back to Starbucks" initiative, which emphasizes a premium coffee experience over discount-driven promotions [5][6] - Starbucks has seen a 40% decline in discounted transactions year over year due to its reduced reliance on discount promotions [6] - The company has eliminated extra charges for non-dairy milk and customizations, enhancing pricing transparency and customer engagement through its "Coffee Forward" marketing campaign [7][8] - Technological investments, including a new in-store prioritization algorithm and enhancements to the mobile app, aim to optimize operational efficiency and improve customer experience [9] - Starbucks is actively pursuing store expansion and renovations, particularly in China, to enhance growth and margin opportunities [10] Group 2: Challenges Facing Starbucks Stock - Comparable store sales have declined, with a global drop of 4% in the fiscal first quarter, attributed to reduced customer traffic and a decline in transactions [11] - The operating margin contracted by 390 basis points year over year to 11.9%, primarily due to higher labor costs and the removal of extra charges for non-dairy milk [13] - Management has suspended full-year guidance, creating uncertainty regarding future earnings and growth projections [14] - Earnings per share (EPS) estimates for fiscal 2025 have been revised downward from $3.10 to $2.99, reflecting weakening analyst confidence [15][16] - The stock is currently trading below its 50-day moving average, indicating a bearish trend and potential short-term volatility [17][18] Group 3: Valuation Insights - SBUX is trading at a forward 12-month price-to-sales (P/S) multiple of 2.90X, which is below the industry average of 4.12X, suggesting an attractive investment opportunity [19]

Group 1: Market Overview - Rising coffee prices have negatively impacted the stock prices of Starbucks and Dutch Bros, with Starbucks down over 4% and Dutch Bros down over 12% in the last 30 days [1][2] - Concerns about tariffs and a potential recession are leading investors to question the valuation of these stocks [2] Group 2: Company Profiles - Starbucks is a market leader with nearly 17,000 stores in the U.S. and generated $3.10 in earnings per share on $36.1 billion in revenue in 2024, both lower year-over-year [3][2] - Dutch Bros, a newer entrant with a devoted customer base, opened its 1,000th location in February 2025 and has seen significant stock performance, up 92.6% in the last 12 months [5][6] Group 3: Coffee Price Dynamics - Arabica coffee prices have surged over 70% since November 2024, reaching levels not seen since 1977 [7] - The increase in coffee prices is influenced by the threat of tariffs and adverse weather conditions in coffee-producing countries, particularly Brazil [8][9] Group 4: Sourcing and Supply Chain - Dutch Bros sources its coffee primarily from Brazil, Colombia, and El Salvador, making it vulnerable to supply chain disruptions [9] - Starbucks sources coffee from over 30 countries and buys approximately 3% of the world's total coffee supply, which exposes it to pricing pressures despite geographic diversity [10] Group 5: Valuation and Investment Considerations - Both stocks are trading at premium valuations, with Dutch Bros at over 111x forward earnings and Starbucks at 35x forward earnings [12] - Investors are paying a premium for growth, and a move below the 200-day moving average could present a buying opportunity for Dutch Bros [13]