Starbucks just posted a very rare revenue decline. Is the stock plunge an opportunity?Starbucks (SBUX -1.76%) is a premium brand that has become ingrained in many people's daily routine. But the company's recent quarter showed that even the best consumer companies can go through a difficult time. In fact, Starbucks' recent results were downright dreadful.Still, the 50-year-old brand has been through tough times before and has always eventually re-emerged stronger. Will history repeat itself, and is now an o ...

In this articleSBUXPeople picket outside of a Starbucks store in New York's East Village as Starbucks Workers United have announced that they are waging the company's largest strike Thursday on the coffee company's Red Cup Day on November 16, 2023 in New York City. Spencer Platt | Getty ImagesWhen Starbucks and its baristas union resume contract bargaining this week, workers may have renewed momentum at their backs — courtesy of the company's own CEO.The coffee giant last month found itself reporting an obj ...

Starbucks (NASDAQ: SBUX) is one of the leading coffee brands in the world, with over 38,000 coffeehouses in 86 countries. However, Starbucks has also built an indirect position in the banking business, currently holding $1.872 billion in customer deposits.This data is from the company’s earnings report for 2024’s second quarter (Q2), under the “stored value card liability” results.Earning reports; Liabilities and Shareholders’equity/(deficit). Source: StarbucksEssentially, when a customer buys a Starbucks C ...

JohnFScott Introduction In this article, we review Starbucks' (NASDAQ:SBUX) recent financial record using the criteria offered by Mr. Joel Greenblatt in his bestselling book "The Little Book That Still Beats the Market"*. In particular, we review Starbucks' return on tangible capital and earnings yield while making adjustments to reflect the methodology that Mr. Greenblatt employed. When applicable, we identify the rationale behind the adjustments to book values and connect it to the framework outlined in h ...

JohnFScott A major post earnings pull back Back in 2023, I wrote an article surmising that a recessionary environment where the consumer would have to tighten their wallet may benefit inferior products like J. M. Smucker's (SJM) Folgers brand. I believed Starbucks (NASDAQ:SBUX) was overpriced for the growth rate the market was expecting which also hinged on a China expansion strategy. Since that article, Starbucks has finally dropped into a buy zone. I still believe I am paying a premium price for the b ...

Investors beware. Starbucks (NASDAQ:SBUX) is likely has further to fall before it hits bottom. Starbucks stock is down 25% over the last 12 months, including an 18% drop so far this year. The share price has barely moved since 2019. Value investors may consider buying Starbucks stock at its 52-week low. It’s a mistake because shares are likely to worsen before improving.Compounding ProblemsStarbucks most recent earnings print was an ugly one that sent the company’s stock down 12% in a day. The results showe ...

The giant is stumbling while the upstart is surging.In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down the bear thesis for Starbucks (SBUX 3.41%) and make the bull case for Dutch Bros (BROS -2.86%).*Stock prices used were from the afternoon of May 15, 2024. The video was published on May 19, 2024. ...

shapechargeThe pullback of 2023 appears to be ending, with the US stock market on the verge of a brand-new record high. YCharts Naturally, this brings many investors angst. After all, aren't corrections healthy? JPMorgan Asset Management Yes, absolutely. The average year for stocks, 76% of which are positive, sees a 14% peak decline. That means, in any given year, a 14% decline would be normal, healthy, and average, and not necessarily that another bear market is coming, much less the 65% super crashes ...

bedo Overview I previously covered Starbucks (NASDAQ:SBUX) (NEOE:SBUX:CA) in January and rated it a buy. However, the guidance outlook was slashed over the last earnings report and the stock has plummeted since then. However, I think this presents an opportunity and the market drastically overreacted to the downside. Even though the short-term noise may have clouded judgement, data reinforces the fact that coffee is still in demand and the cult following of Starbucks will likely be maintained throughout ...

Core Viewpoint - Starbucks is facing significant challenges in 2024, with management failing to address consumer needs amid persistent inflation and high food prices, leading to a perception that the stock is "cheap for a reason" [1] Financial Performance - Starbucks reported second-quarter fiscal 2024 results that were significantly below expectations, with net revenue of $8.6 billion, missing the anticipated $9.1 billion, representing a 1.8% year-over-year decline [2] - The company's earnings per share were 68 cents, reflecting a 13.9% year-over-year decrease and falling short of Wall Street's forecast of 80 cents per share [2] Comparable-Store Sales - Comparable-store sales for Starbucks fell 4% globally and 11% specifically in China during the second quarter [3] Management's Response - CEO Laxman Narasimhan acknowledged the challenging environment but suggested that the results do not reflect the brand's potential or future opportunities [3] - The management's refusal to lower product prices despite declining revenue has been criticized, with CFO Rachel Ruggeri attributing the revenue drop to "occasional customers" reducing spending [4] Strategic Misalignment - There is a concern that Starbucks is overly focused on transactional sales rather than creating an experiential environment for customers, which may be perceived as greed [1][4] - Management's strategy to improve service speed and introduce trendy beverages like "boba" is seen as insufficient to address the underlying issues [6]