Starbucks Surges 12% on Strong Q4 Earnings Report

Starbucks Corporation, listed on NASDAQ as SBUX, is a global leader in the premium coffee market, operating over 40,000 locations worldwide. The company is known for its specialty coffee and beverages, and it competes with other major coffee chains like Dunkin' and McDonald's. Starbucks has a strong brand presence and continues to expand its global footprint.

On January 28, 2025, Starbucks reported earnings per share (EPS) of $0.69, slightly above the estimated $0.68. This performance also exceeded the Zacks Consensus Estimate of $0.66, marking a 4.55% surprise. However, this is a decrease from the $0.90 EPS reported a year ago, indicating some challenges in maintaining previous profit levels.

Starbucks' revenue for the quarter was approximately $9.4 billion, surpassing the estimated $9.3 billion. This figure was slightly above the Zacks Consensus Estimate by 1.02%, but it represents a small decline from the $9.43 billion reported in the same quarter the previous year. Despite these positive results, the company faced a 4% decline in global comparable store sales, highlighting ongoing challenges in the market.

The company's financial ratios provide insight into its valuation and financial health. Starbucks has a price-to-earnings (P/E) ratio of about 30.36, indicating that investors are willing to pay over 30 times the company's earnings. The price-to-sales ratio is around 3.15, suggesting that investors pay $3.15 for every dollar of sales. The enterprise value to sales ratio is approximately 3.77, reflecting the company's total valuation relative to its sales.

Starbucks' debt-to-equity ratio is negative at approximately -3.46, which may indicate a higher level of debt compared to equity. The current ratio is about 0.75, suggesting potential liquidity concerns as the company has less than one dollar in current assets for every dollar of current liabilities. Despite these challenges, BTIG managing director Peter Saleh describes Starbucks as being in the "early innings" of a turnaround story, indicating potential for further growth and development.

• Citigroup maintains a "Buy" rating for Starbucks Corporation (NASDAQ:SBUX) with a stock price of $99.51 and a consensus price target of $106.
• Starbucks to implement new policies to address a 5% decline in North American transactions, aiming to improve customer experience and boost sales.
• Despite anticipated declines in financial performance, Starbucks receives a "buy" rating from more than half of the analysts, with a market capitalization of approximately $113.4 billion.

Starbucks Corporation (NASDAQ:SBUX) is a global coffeehouse chain known for its specialty coffee and beverages. The company operates thousands of stores worldwide, offering a variety of products including coffee, tea, and food items. Starbucks faces competition from other coffee chains like Dunkin' and McDonald's, which also offer similar products. Despite the competitive landscape, Starbucks remains a dominant player in the coffee industry.

On January 27, 2025, Citigroup maintained its "Buy" rating for Starbucks, suggesting that investors hold onto their shares. At that time, the stock was priced at $99.51. This recommendation comes as Starbucks prepares to release its first-quarter earnings report, with analysts predicting a decline in both revenue and earnings. Despite these challenges, the stock has a consensus price target of $106, indicating potential growth.

Starbucks is implementing new policies to address a 5% decline in North American transactions in 2024. Starting Monday, only paying customers or their guests can use the company's facilities, reversing a 2018 policy. This change aims to improve customer experience and boost sales. Analysts expect a 4.8% decrease in same-store sales, with earnings per share projected at $0.67 and revenue at $9.32 billion.

Despite the anticipated decline in financial performance, more than half of the analysts covering Starbucks have given it a "buy" rating. Jefferies analysts have noted challenges in product innovation, but investor optimism remains. Of the 16 analysts, 10 have issued a "buy" rating, while four have given a "hold" rating, and two have opted for a "sell." The stock's recent price increase to $100.02 reflects this positive sentiment.

Starbucks' market capitalization stands at approximately $113.4 billion, with a trading volume of 8,775,779 shares. The stock has traded between $98.10 and $100.33 today, with a 52-week high of $103.32 and a low of $71.55. As Starbucks prepares to announce its earnings, investors are closely watching for any signs of recovery or further challenges.

Starbucks (NASDAQ:SBUX) reported fourth-quarter results that fell short of analyst expectations, leading to a more than 1% drop in shares intra-day today. The coffee chain’s earnings and revenue both declined as it grappled with challenges in customer experience and reduced store traffic.

For Q4, Starbucks posted adjusted earnings per share of $0.80, below the expected $1.03, while revenue came in at $9.07 billion, missing the forecasted $9.38 billion and marking a 3% year-over-year decline. Global comparable store sales fell 7%, driven by an 8% decrease in transactions, though partially offset by a 2% rise in the average ticket price.

In North America, comparable store sales decreased 6%, with transactions dropping 10% but a 4% boost in average ticket size.

• Starbucks Corporation (NASDAQ:SBUX) reported earnings per share (EPS) of $0.80, missing the expected $1.02, and revenue of $9.1 billion, below the estimated $9.37 billion.
• The company is undergoing a strategic shift to refocus on its core offerings amidst disappointing global comparable store sales.
• Despite financial challenges, Starbucks maintains a price-to-earnings (P/E) ratio of 27.1 and a price-to-sales ratio of 3.03, indicating continued investor confidence.

Starbucks Corporation, listed as NASDAQ:SBUX, is a global coffeehouse chain known for its specialty coffee and beverages. The company operates thousands of stores worldwide, offering a variety of products including coffee, tea, and food items. Starbucks competes with other major coffee brands like Dunkin' and McDonald's in the fast-food and beverage industry.

On October 30, 2024, Starbucks reported earnings per share (EPS) of $0.80, which was below the expected $1.02. The company's revenue for the period was $9.1 billion, also missing the estimated $9.37 billion. This shortfall in earnings and revenue has raised concerns among investors and analysts about the company's financial health and future prospects.

Adding to the company's challenges, Bragar Eagel & Squire, P.C., a shareholder rights law firm, is investigating Starbucks on behalf of its long-term stockholders. This investigation follows a class action complaint filed on August 28, 2024, covering a class period from November 2, 2023, to April 30, 2024. The focus is on whether Starbucks' board of directors breached their fiduciary duties.

Starbucks is also undergoing a strategic shift, aiming to refocus on its core offerings and streamline operations. This move comes as the company faces disappointing global comparable store sales, which could further impact its financial performance. Investors are weighing their options on whether to buy, sell, or hold Starbucks stock amid these challenges.

Despite these issues, Starbucks has a price-to-earnings (P/E) ratio of 27.1, indicating the market's valuation of its earnings. The company's price-to-sales ratio is 3.03, and its enterprise value to sales ratio is 3.63, reflecting investor confidence in its revenue and sales. However, the negative debt-to-equity ratio of -2.14 and a current ratio of 0.89 suggest potential financial risks.

Starbucks (NASDAQ:SBUX) shares fell over 3% in pre-market today after the company released disappointing preliminary results for its fourth quarter. The coffee giant reported declines across key metrics, including same-store sales, net revenue, and profits, as it faced weakening demand in the US market.

For Q4 2024, Starbucks saw global comparable store sales drop by 7%, with consolidated net revenues slipping 3% to $9.1 billion. The earnings per share fell by 24%, landing at $0.80 on a constant currency basis.

In the US, comparable sales declined by 6%, driven by a significant 10% drop in transaction volume, although this was slightly offset by a 4% increase in average ticket size. In China, Starbucks experienced an even sharper downturn, with sales plunging 14% for the quarter.

In response to these results, the company suspended its guidance for the upcoming fiscal year as new CEO Brian Niccol focuses on steering the business through declining demand for its premium offerings. Starbucks is now entering a period of recalibration to address the challenges posed by slowing sales and evolving consumer preferences.

Starbucks Corporation (NASDAQ:SBUX) is a global coffeehouse chain known for its premium coffee and customer-centric approach. Founded in 1971, Starbucks has grown to become a leading player in the coffee industry, with thousands of locations worldwide. The company competes with other major coffee brands like Dunkin' and McDonald's, but it distinguishes itself through its unique store experience and diverse product offerings.

Despite a slight dip of 1.53% over the past 10 days, Starbucks' stock has shown resilience, indicating potential for a strong rebound. This minor setback could be an opportunity for investors to buy shares at a lower price, especially given the stock's respectable monthly gain of 2.83%. This gain suggests that investors remain confident in Starbucks' market strength and future prospects.

Starbucks' growth potential is underscored by a projected stock price increase of 15.53%. This growth is driven by the company's strategic initiatives to expand its market presence and improve operational efficiency. With a target price set at $110.89, analysts express confidence in Starbucks' ability to overcome challenges and seize growth opportunities, making it an attractive investment option.

The company's financial health is reflected in its strong Piotroski Score of 8. This score indicates solid profitability, liquidity, and operational efficiency, which are key factors for value investors. Starbucks' robust financial position supports its growth strategies and enhances its appeal as a resilient investment choice in the competitive coffee industry.

Starbucks Corporation, listed on the NASDAQ:SBUX, is a global coffeehouse chain known for its premium coffee and diverse menu offerings. With a strong presence worldwide, Starbucks competes with other major coffee brands like Dunkin' and McDonald's. On October 7, 2024, Jon Tower from Citigroup set a price target of $99 for Starbucks, while the stock was trading at $96.09.

The price target set by Citigroup suggests a potential increase of approximately 3.03% from the current stock price. This target aligns with the favorable ratings from Wall Street analysts, who recommend Starbucks as a buy. Such endorsements can influence investor decisions and potentially drive the stock price closer to the target.

Currently, Starbucks' stock price is $96.09, reflecting a slight decrease of $0.49, or about -0.51%. Throughout the trading day, the stock has seen fluctuations, with a low of $95.36 and a high of $96.51. This volatility is typical in the stock market and can be influenced by various factors, including analyst recommendations.

Over the past year, Starbucks' stock has experienced significant highs and lows, reaching a peak of $107.66 and a low of $71.55. Despite these fluctuations, the company maintains a robust market capitalization of approximately $108.9 billion, indicating its strong position in the market.

The trading volume for Starbucks is 6,662,338 shares, reflecting active investor interest. As highlighted by Zacks, the positive analyst ratings and the set price target may continue to attract investors, potentially impacting the stock's future performance.