These beaten-down blue chip stocks are struggling in 2024, but one stands out as the better buy today.When you think about iconic American brands, Nike (NKE 0.04%) and Starbucks (SBUX 2.09%) are likely to come to the top of your mind. Both companies have a long history of delivering outsized returns for shareholders, but 2024 has been a different story, with each stock down more than 20% year to date. Anytime a blue chip stock is down considerably, it's worth revisiting to determine whether it's a minor bli ...

The company raised prices but it's counteracting this move with promotional pricing.At this point there's no sugarcoating it: If you bought shares of coffee giant Starbucks (SBUX 2.09%) anytime during the last decade, you're probably underperforming the S&P 500. And there's a good chance that you're not only underperforming, but you're also losing money.As of this writing, Starbucks stock is down 42% from its highs in 2021. Back then, everything seemed to be clicking with the business. But its recent perfor ...

Core Insights - Starbucks is experiencing significant challenges, with shares down over 41% from their all-time high nearly three years ago, raising concerns about the sustainability of its growth [1] - The company reported a 4% decline in global comparable-store sales and a 6% drop in transactions during the fiscal second quarter, marking the worst performance since the global financial crisis [2] - Despite these challenges, Starbucks remains profitable and has strategic flexibility to recover, with management optimistic about future conditions and product innovation [4] Financial Performance - The adjusted global operating margin for the second quarter fell to 12.8% from 14.2% a year earlier, and adjusted earnings per share (EPS) decreased by 7% to $0.68 [3] - Full-year guidance indicates a low-single-digit decline to flat growth in comparable-store sales for 2024, a downward revision from a previous target of 4% to 6% growth [3] - Starbucks plans to increase its global store count by 6% this year, which is expected to support low single-digit revenue growth [3] Market Position and Valuation - Shares are currently trading at around 20 times the midpoint of management's 2024 EPS guidance, which is below the average for the past decade but similar to levels from two years ago [5] - The bearish perspective suggests that if the current outlook is worse than in 2022, the stock may not be significantly undervalued despite the recent sell-off [5] Future Outlook - There is cautious optimism regarding the potential for Starbucks to outperform lowered expectations in the coming quarters, which could lead to a sustained rally [7] - Risks remain, including the possibility of economic deterioration impacting sales, but a position in Starbucks stock near its two-year low may be beneficial within a diversified portfolio [7]

Core Viewpoint - The article highlights the performance of lesser-known coffee brands, Dutch Bros and Black Rifle Coffee, which are currently outperforming Starbucks in the market, particularly in 2024, as Starbucks faces a decline in stock value and customer transactions [1]. Group 1: Dutch Bros - Dutch Bros operates a drive-thru coffee chain with 831 locations and reported a 10% increase in same-store sales in Q1, indicating strong business health [2][3]. - The company has opened over 150 new locations in the past year and plans to continue this aggressive growth strategy, aiming for a total of 4,000 locations long-term [3]. - In contrast to Starbucks, which experienced a 7% year-over-year drop in transactions in North America, Dutch Bros saw an increase in customer traffic [2]. Group 2: Black Rifle Coffee - Black Rifle Coffee sells coffee through a subscription service and is expanding its retail presence, with a 51% year-over-year increase in wholesale revenue in Q1 2024 [4][5]. - The company has increased its ready-to-drink coffee products distribution to nearly 87,000 locations, up 38%, and is growing sales faster than comparable products [5]. - Despite hitting an all-time low in late 2023, Black Rifle Coffee's stock has gained traction in 2024 due to its successful expansion beyond the subscription model [6].

The Starbucks of yesteryear may not be equipped to serve the customer of the future ... or even the customer of the present.It's been a tough past three years for Starbucks (SBUX 2.09%) shareholders. The stock is down 42% from its mid-2021 peak and knocking on the door of new multi-year lows. Another round of disappointing quarterly results could easily drag shares back to prices last seen at the onset of the COVID-19 pandemic.Veteran investors know the time to step into quality stocks is when they're "on s ...

In the latest market close, Starbucks (SBUX) reached $72.56, with a -0.26% movement compared to the previous day. This change lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.18%.Shares of the coffee chain witnessed a loss of 8.94% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 1.87% and the S&P 500's gain of 4.44%.Market participants will be closely following the financial results of Sta ...

McDonald’s (NYSE: MCD) 2024 stock market troubles have already been linked to the Gaza-associated boycotts, though Starbucks (NASDAQ: SBUX) has taken the bulk of attention in this regard – despite its status as an officially targeted entity being dubious  – and has also taken substantial stock market damage,In fact, it was actually McDonald’s that first the ire of the support of Palestine and the early actions of McDonald’s Israel have also triggered something of a feud between the corporate fiefdoms. As th ...

The S&P 500 is near its all-time high, but not all stocks are in the same boat.The S&P 500 has been reaching all-time highs in 2024, mostly fueled by large-cap technology stocks. However, not all stocks have performed quite so well, and that's even true about some that could be excellent long-term investments.Vici Properties (VICI 0.29%) is an excellent business with tons of growth potential that has been beaten down because of its interest rate sensitivity. Starbucks (SBUX -1.95%) disappointed investors wi ...

EDMONTON, Alberta, July 02, 2024 (GLOBE NEWSWIRE) -- Starbucks workers at the Kingsway Ave. & 117 St. store in Edmonton have voted to join the United Steelworkers (USW) union. There are over 25 partners at the store and will become members of USW Local 1-207. “This is such an exciting step forward for us at Kingsway drive-thru! I’m so proud of all my fellow partners who have worked so hard to get us here and I’m excited to see what the future holds for us,” said Vala Ingolfsson, a Kingsway Starbucks partner ...

Starbucks (NASDAQ: SBUX) has done relatively little to endear itself in recent years as it worked to strip away to the in-store comforts, had its CEO apparently compare working for the chain to being a concentration camp prisoner – and try to sell it as a good thing – and made an ill-timed denouncement of a union X post in support of Palestine.Looking at SBUX’s stock market performance in the last 12 months, it would appear that the latter of the three – the alleged attempt to remain apolitical – proved to ...