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From Comps to Coffee Costs: What Will Define SBUX's FY26 Trajectory?
ZACKS· 2025-11-13 16:55
Core Insights - Starbucks Corporation (SBUX) shows early signs of stabilization entering fiscal 2026, with its future dependent on sustaining comparable sales momentum and managing ongoing inflationary pressures, particularly in coffee costs [1][10] Financial Performance - The company concluded fiscal 2025 with its first positive global comparable sales growth in seven quarters, attributed to improved U.S. traffic trends and strong international performance, including growth in China [2] - Starbucks anticipates continued comparable sales growth throughout fiscal 2026, although management acknowledges that recovery may not be linear [4] Operational Strategy - A significant factor in Starbucks' performance will be the implementation of the Green Apron Service, which focuses on staffing, speed, and customer connection, showing early positive results in U.S. stores [3] - The company is enhancing service execution, particularly during morning hours, and plans to introduce new menu items to support transaction growth and premium offerings [4] Cost Management - Persistent coffee inflation and tariffs are expected to pressure margins, with elevated coffee prices likely affecting profitability through at least the first half of fiscal 2026 [5] - Starbucks is restructuring general and administrative costs and improving unit economics by closing underperforming stores, although earnings may lag behind revenue growth due to labor investments [5] Competitive Landscape - Competition from McDonald's (MCD) and Dutch Bros (BROS) is significant as Starbucks seeks to strengthen its comparable sales and manage coffee cost inflation [7] - McDonald's McCafé platform is gaining popularity among value-seeking consumers, while Dutch Bros is rapidly expanding in the specialty beverage market, posing challenges to Starbucks [8] Valuation Metrics - Starbucks shares have increased by 0.9% over the past six months, contrasting with a 9.7% decline in the industry [9] - The company trades at a forward price-to-sales ratio of 2.54, which is below the industry average of 3.39 [13] Earnings Estimates - The Zacks Consensus Estimate for Starbucks' fiscal 2026 and 2027 earnings per share (EPS) suggests year-over-year gains of 16.9% and 23.6%, respectively, although EPS estimates have declined in the past 30 days [15]
Chipotle (CMG) Was Supposed To Be A Winner, Says Jim Cramer
Yahoo Finance· 2025-11-13 16:31
Core Viewpoint - Jim Cramer discussed Chipotle Mexican Grill, Inc. (NYSE:CMG) in relation to its business model struggles and high pricing issues, suggesting that these factors are more significant than general consumer sentiment [2]. Group 1: Company Performance - Chipotle Mexican Grill, Inc. is facing challenges primarily due to its business model rather than overall consumer sentiment [2]. - Cramer highlighted that the company struggles with high prices, which may hinder its competitiveness against rivals like McDonald's [2]. - Earlier in the year, Cramer expressed disagreement with concerns about the firm's same-store sales growth justifying its high share price, but later suggested that a limited-time offer at a lower price point was necessary for competition [2]. Group 2: Market Sentiment - Cramer noted that Chipotle was expected to perform well in the current economic climate, referencing comments from Bank of America's CEO about increased spending among wealthy consumers [3]. - Despite acknowledging Chipotle's potential as an investment, Cramer indicated that he believes certain AI stocks may offer better returns with less risk [3].
Tracking Starbucks' battles with workers union
Reuters· 2025-11-13 16:24
More than 1,000 Starbucks unionized baristas launched an open-ended strike on Thursday, intensifying their push for a collective bargaining agreement over pay and other benefits at the coffee giant. ...
Starbucks Workers Strike on Red Cup Day. The Stock Could Be Ready to Break Out Anyway.
Barrons· 2025-11-13 16:22
Core Points - The coffee chain reports that only 4% of its workforce consists of union members [1] Company Summary - The coffee chain's workforce composition indicates a low level of union representation, with only 4% of employees being union members [1]
Eggs Up Grill looks for Atlanta growth with more than 25 franchise territories
Yahoo Finance· 2025-11-13 15:31
Eggs Up Grill has plans to scale its presence in metro Atlanta, in the US state of Georgia, making more than 25 territories for new franchise development available. The move comes on top of 15 locations already operating in Georgia. Eggs Up Grill is seeking interest from multi-unit operators and local business owners to join its franchise system. Eggs Up Grill CEO Ricky Richardson stated: "Atlanta represents a unique opportunity for Eggs Up Grill to deepen our roots in a state where the brand is already ...
Starbucks’ Horrible Future
Yahoo Finance· 2025-11-13 15:15
Deagreez / iStock via Getty Images Starbucks Corp. (NASDAQ: SBUX) share prices suggest the company’s best year is well behind it, in 2021. The coffee purveyor has had a revolving door for chief executives since then. Kevin Johnson, Howard Schultz, Laxman Narasimhan, and Brian Niccol have all held the job. Schultz is its proverbial bad penny. Quick Read Starbucks Corp. (NASDAQ: SBUX) stock suggests the coffee purveyor’s best years are well behind it. The latest in a line of CEOs has failed to turn aro ...
KITL Retains LB Equity Advisors, Inc.
Newsfile· 2025-11-13 14:30
Miami, Florida--(Newsfile Corp. - November 13, 2025) - Kisses From Italy Inc. (OTCQB: KITL), a publicly listed U.S.-based company, restaurant operator, franchisor, and product distributor in the United States, Canada, and Europe, announced today that LB Equity Advisors, Inc., has been retained as advisors and appointed J. Zimbler as Interim Management Advisor, and Interim President and sole Director, responsible for the reposition of the company's direction and rebranding the company and to recruit new man ...
Starbucks' Horrible Future
247Wallst· 2025-11-13 14:15
Starbucks Corp. (NASDAQ: SBUX) share prices suggest the company's best year is well behind it, in 2021. ...
Wingstop Sets Fall on Fire with Spicy Marg-Inspired Fiery Lime Flavor
Prnewswire· 2025-11-13 14:15
Core Insights - Wingstop has launched a new limited-time flavor called Fiery Lime, inspired by spicy margaritas, available nationwide [1][2][3] - The flavor combines red chili heat and tangy lime zest, aiming to attract customers looking for bold and unexpected options during gatherings [2] - Wingstop emphasizes its commitment to innovation by not adhering to traditional seasonal flavors, instead offering unique options year-round [2] Company Overview - Wingstop, founded in 1994 and headquartered in Dallas, TX, operates over 2,900 restaurants globally, with 98% owned by brand partners [4] - The company reported approximately $5 billion in system-wide sales for fiscal 2024 and has achieved 21 consecutive years of same-store sales growth [4] - Wingstop aims to become a Top 10 Global Restaurant Brand and has recently been named the Official Chicken Partner of the NBA [4] Product Details - Fiery Lime is designed for various occasions, including Friendsgiving and game day parties, enhancing the dining experience with its bold flavor [2] - Chef Larry Bellah recommends pairing Fiery Lime with classic wings and ranch, while Teremana® Tequila's Global Brand Ambassador highlights its compatibility with spicy margaritas [2][5] - The product is available through Wingstop locations, the Wingstop app, and Wingstop.com for a limited time [3]
Brinker International: Temporary Headwinds, Long-Term Upside
Seeking Alpha· 2025-11-13 14:09
Core Insights - Brinker International (EAT) is identified as a potential investment opportunity due to its turnaround story, focusing on margin expansion and topline growth [1] Company Analysis - The company has shown positive trends in both margin expansion and revenue growth, indicating a strong operational performance [1] - The analysis is backed by over 20 years of experience in quantitative research and financial modeling, emphasizing a data-driven approach to investment insights [1] Investment Strategy - The research combines rigorous risk management with a long-term perspective on value creation, aiming to uncover high-growth investment opportunities [1] - There is a focus on macroeconomic trends, corporate earnings, and financial statement analysis to provide actionable ideas for investors [1]