Starbucks(US:SBUX) ZACKS·2024-08-17 03:20CEO Transition and Stock Performance - Chipotle Mexican Grill's CEO Brian Niccol is set to depart to become the CEO of Starbucks in September [1] - Chipotle's stock has soared over +200% in the last five years under Niccol's leadership, compared to Starbucks' -2% performance [1] Growth Comparison - Chipotle's annual earnings are expected to increase 20% in fiscal 2024 to $1.08 per share, up from $0.90 last year [2] - Chipotle's EPS is projected to grow 18% in FY25 [2] - Chipotle's total sales are expected to rise 15% in FY24 and another 13% in FY25 to $12.79 billion [2] - Starbucks' annual earnings are expected to be flat in FY24 but projected to rise 11% in FY25 to $3.94 per share [3][4] - Starbucks' total sales are slated to increase 1% in FY24 and expand another 6% in FY25 to $38.84 billion [4][5] Valuation Comparison - Starbucks trades at 26.6X forward earnings, near the S&P 500's 23.3X [6] - Chipotle trades at a premium of 49.7X forward earnings, significantly higher than the broader market [6] Balance Sheet Comparison - Chipotle has $1.49 billion in cash & equivalents, $8.92 billion in total assets, and $5.2 billion in total liabilities [8] - Starbucks has $3.39 billion in cash & equivalents, $30.11 billion in total assets, and $38.04 billion in total liabilities [9] Final Thoughts - Starbucks faces operational challenges and balance sheet concerns, but Brian Niccol's leadership may bring improvements [10] - Both Starbucks and Chipotle are considered viable long-term investments with a Zacks Rank 3 (Hold) [10]