Wall Street expects a year-over-year decline in earnings on lower revenues when Starbucks (SBUX) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 28, 2025, might help the stock move higher if these key numbers are better than expe ...

Starbucks said Friday it plans an unspecified number of layoffs as it restructures its corporate staff.In a letter to employees, Starbucks Chairman and CEO Brian Niccol said the Seattle coffee giant needs to ensure all work has a clear and accountable owner who can make decisions. The company also needs to reduce complexity and silos.“Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work,” Niccol wrote.Brian Niccol, the former ...

Starbucks (SBUX) ended the recent trading session at $93.08, demonstrating a +0.01% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.The coffee chain's stock has climbed by 1.06% in the past month, exceeding the Retail-Wholesale sector's loss of 4.54% and the S&P 500's loss of 3.31%.Investors will be eagerly watching for the performance ...

BofA Securities analysts Sara Senatore and Katherine Griffin expressed their views on the restaurant industry for the year ahead 2025.The analysts expect slow but still healthy job growth to support restaurant demand, industry pricing to moderate, and promotional activity to rise as input prices fall.Notably, the analysts write that the industry growth in 2024 aligned with historical averages—Blackbox industry SSSG was -0.2% compared to the 2013-2019 average of -0.1%, and PCE growth was +4.9% versus the pre ...

Starbucks is extending its free refills policy to non-rewards members with reusable cups.Customers at participating stores will be eligible for a top-up of many brewed coffee and teas.Starbucks is also reversing its open-door policy, limiting facilities to paying customers and staff.Starbucks is expanding its free refills policy to all customers at participating stores as part of its new code of conduct, effective January 27.AD Non-rewards members at the coffee giant will soon be able to receive refills at ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Starbucks has reversed its North American policy allowing people to sit in stores and use the loo without buying anything. Patrons in the US and Canada now must buy something or leave. Starbucks did not respond to questions about the impact the policy change could have on its UK shops.Sky News asked if there was a code of conduct in UK branches, if people were required to make a purchase, and if there were plans to revise the code if one existed.Money blog: Spain proposes 100% tax on foreign-owned homes The ...

Policy Change - Starbucks is reversing its open-door policy, which previously allowed non-paying guests to use restrooms or linger in stores [1][2] - The new policy reserves cafes, patios, and restrooms exclusively for paying customers and staff [2] - A customer is defined as anyone making a purchase or accompanying someone making a purchase [4] Implementation Details - The policy change will take effect on January 27 in all North American stores [4] - Signs displaying the new code of conduct will be posted in every store [4] - Staff will be trained to enforce the policy and may request violators to leave, with potential support from local law enforcement if necessary [4] Rationale and Context - The change aims to prioritize paying customers who wish to enjoy the cafes or use restrooms during their visit [3] - This reversal follows a 2018 open-door policy implemented after a controversial incident in Philadelphia where two Black men were arrested for sitting in a store without making a purchase [6] - The company's CEO, Brian Niccol, previously expressed a vision for Starbucks to serve as a "third space" for people to hang out [6] Customer Experience - Starbucks aims to create inviting spaces with comfortable seating and thoughtful design, distinguishing between "to-go" and "for-here" service [5]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Starbucks (SBUX), and highlights the importance of using these recommendations in conjunction with other analytical tools for investment decisions [1][4]. Brokerage Recommendations for Starbucks - Starbucks has an average brokerage recommendation (ABR) of 1.98, indicating a consensus between Strong Buy and Buy, based on recommendations from 31 brokerage firms [2]. - Out of the 31 recommendations, 16 are classified as Strong Buy (51.6%) and 2 as Buy (6.5%) [2]. Limitations of Brokerage Recommendations - The article suggests that relying solely on brokerage recommendations may not be wise, as studies indicate limited success in guiding investors towards stocks with the best price increase potential [4]. - Analysts from brokerage firms often exhibit a strong positive bias due to vested interests, leading to a higher number of Strong Buy recommendations compared to Strong Sell recommendations [5][9]. Zacks Rank as an Alternative Tool - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, utilizing earnings estimate revisions rather than just brokerage recommendations [7][10]. - The Zacks Rank is distinct from ABR, as it is based on a quantitative model and is updated more frequently to reflect changes in earnings estimates [8][11]. Current Earnings Estimates for Starbucks - The Zacks Consensus Estimate for Starbucks has declined by 0.4% over the past month to $3.10, indicating growing pessimism among analysts regarding the company's earnings prospects [12]. - This decline in earnings estimates has contributed to a Zacks Rank of 4 (Sell) for Starbucks, suggesting caution despite the Buy-equivalent ABR [13].

Core Viewpoint - The coffee industry is witnessing a shift in focus from Starbucks to Dutch Bros, which is emerging as a significant player with rapid expansion plans and impressive growth metrics [1][2]. Company Overview - Dutch Bros has gained popularity with its Dutch Classics and a variety of beverages, including teas, smoothies, and lemonades, contributing to its sales growth [2]. - The company aims to open 4,000 locations over the next 10 to 15 years, indicating a strong growth trajectory [2][5]. Financial Performance - As of Q3 2024, Dutch Bros operated 950 locations across 18 states, marking a 20% increase from the previous year [3]. - Revenue for the first three quarters of 2024 reached $938 million, reflecting a 32% year-over-year increase, with same-shop sales rising by 5.2% [3]. - The stock has seen a significant recovery, gaining 65% in 2024 following its Q3 earnings report, despite a high price-to-earnings (P/E) ratio [4]. Market Position - Dutch Bros' price-to-sales (P/S) ratio stands at 4.4, which is a modest premium compared to Starbucks' P/S ratio of 2.9 [4]. - The current footprint of Dutch Bros, with 950 locations, is small compared to Starbucks' over 40,000 locations, but the aggressive expansion plans position Dutch Bros as a compelling long-term growth story [5].