The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Starbucks (SBUX) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Starbucks currently has an avera ...

Starbucks' mobile app appeared to be down during the morning coffee rush on Thursday.Some users got a message saying, "mobile ordering is currently unavailable."The app has been a source of growth but has led to operational challenges for the chain's employees. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a personaliz ...

Starbucks (SBUX) is a roaster and retailer of specialty coffee globally. Besides its fresh, rich-brewed coffees, the company's offerings include many complimentary food items and a selection of premium teas and other beverages, sold mainly through its retail stores.Analysts have taken their earnings expectations lower, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).Image Source: Zacks Investment ResearchLet’s take a closer look at how the company currently stacks up.StarbucksStarbucks sha ...

Starbucks' new chief executive announced a series of changes this week aimed at drawing back customers as the company navigates unionization pressures, declining foot traffic, and frequent leadership changes.  Brian Niccol, who took over as CEO in September, told analysts on an earnings call this week that the company's financial results "were very disappointing" as sales at U.S. stores opened for at least a year declined 6%, which was driven by a 10% decline in transactions.Niccol emphasized the need for t ...

Led by new CEO Brian Niccol, Starbucks Corporation (NASDAQ: SBUX ) has laid out a masterfully simple turnaround plan that is likely to succeed. Add in a potential recovery from the company's Chinese operations, and it combines to make the stock Nelson retired from the corporate world at 39 and now manages his own portfolio full-time. His focus is on under covered and unappreciated Canadian dividend stocks, excellent companies at solid values which happen to pay dividends. Analyst's Disclosure: I/we have a b ...

Brian Niccol is exactly what Starbucks NASDAQ: SBUX needs, which is why the stock price will move higher soon and sustain an uptrend over time. His experience with Chipotle Mexican Grill NYSE: CMG makes him a perfect match for the company. His ability to focus on the brand, product quality, and flow through while simultaneously growing the fast-casual business is central to the turnaround and why it sustains a double-digit CAGR. Starbucks is a much larger company, but it needed a reboot, which, after multip ...

In this articleSBUXPeople seen around the Starbucks coffee store in Shenzhen, China.Jakub Porzycki | Nurphoto | Getty ImagesOn Starbucks' fourth-quarter earnings call, newly installed CEO Brian Niccol told investors he needed to spend more time in China to understand the challenges.The company's same-store sales in the country plummeted 14% as foot traffic and the average spend per customer fell. Niccol told CNBC's Andrew Ross Sorkin that he plans to visit the country the first or second week of December to ...

Starbucks Corporation SBUX shares are trading marginally higher on Thursday.Yesterday, the company reported fourth-quarter revenues of  $9.07 billion versus estimates of $9.38 billion. Comparable store sales declined 7% globally, driven by an 8% decline in comparable transactions, partially offset by a 2% increase in average ticket.Wedbush analyst Nick Setyan reiterated the Neutral rating on the stock, lowering the price forecast to $95 from $98.According to the analyst, the firm’s current valuation reflect ...

Starbucks' Turnaround Challenges - Starbucks is undergoing a significant turnaround effort due to struggles in growing sales, leading to investor concerns [1] - The company has appointed a new CEO, Brian Niccol, to address these challenges [1] - Despite leadership changes, the turnaround may not be quick or easy, as indicated by recent earnings and CFO Rachel Ruggeri's comments [2][3] Operational and Strategic Issues - Starbucks faces challenges in reversing traffic decline despite increased investments [3] - Complaints about the ordering process and less welcoming store environments have been noted [3] - The company is simplifying its menu, but CFO Ruggeri emphasizes that there is no easy fix and a turnaround plan will take time [3] Financial Performance and Guidance - Starbucks suspended its guidance for fiscal 2025, reflecting management's uncertainty about the future [4] - Global comparable store sales declined by 7% in the most recent quarter, worse than the 3% decline reported in the previous quarter [4] Geopolitical and Competitive Pressures - Geopolitical factors, such as the Middle East conflict, have led to consumer boycotts due to perceived connections to Israel [5] - In China, Starbucks faces growing competition and pricing pressure [5] Leadership and Market Position - New CEO Brian Niccol had success with Chipotle, but Starbucks presents a larger and more complex business with broader challenges [6] - Starbucks' strong and loyal following appears to be waning as consumers face rising costs [7] Valuation and Investment Considerations - Starbucks' stock is trading at a high multiple of 27 times earnings, which may not provide a margin of safety given the uncertainty of a successful turnaround [8] - The challenges suggest the stock should be trading at a steep discount, but current valuations do not reflect this [8]

I am a finance enthusiast with a keen interest in value investing. Since 2022, I have been sharing my insights on Seeking Alpha, focusing on easy-to-understand businesses that present opportunities, especially those that are currently out of favour.Wishing everyone the best in their investing journey!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myse ...