Morningstar Rating
Stock XNAS Rating as of
$98.20 +4.86(5.21%)
View Full ChartAs of Delayed Price Post-Trading:$98.08 −0.12
Company Report
Company Report
Starbucks: Luring Brian Niccol Should Stimulate Sagging Coffee Chain
Sean Dunlop
Leadership matters. Wide-moat Starbucks certainly isn’t through the weeds as it navigates an extremely challenging consumer environment, but the addition of Wall Street favorite Brian Niccol to the team stands to restore investor confidence in the battered brand. As we digest the news, we plan to maintain our respective $95 and $43 fair value estimates for Starbucks and wide-moat Chipotle (where Niccol will serve as CEO until Aug. 31, 2024) and our Exemplary Capital Allocation Ratings, although we will reevaluate our outlook for Chipotle once a permanent successor to Niccol is named. The burrito chain will be served in the interim by Chief Operating Officer Scott Boatwright, whose seven years of company experience, in tandem with retiring CFO Jack Hartung’s willingness to stay on “indefinitely” with the brand until a permanent CEO is announced, should assuage any immediate concern, despite Chipotle shares falling 13% during Aug. 13 intraday trading (Starbucks shares surged a striking 22%-23%).
Price vs Fair Value
Price vs Fair Value
SBUX is trading within a range we consider fairly valued.
Price
$93.34
Fair Value
$67.00
Uncertainty
Medium
- 1-Star Price
- $657.98
- 5-Star Price
- $15.80
- Economic Moat
- Wrrq
- Capital Allocation
- Kknppsxvf
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Starbucks’ "connect" initiative should drive continued adoption of the firm’s loyalty program, materially increasing customer lifetime value and helping drive new user acquisition.
Bears
Declining traffic within the firm's occasional-customer base may take multiple quarters to reverse, pressuring comparable store sales and margin expansion initiatives.
News
News
- SBUX Investors Have Opportunity to Join Starbucks Corporation Fraud Investigation with the Schall Law Firm
- Shareholder Rights Law Firm Robbins LLP Reminds SBUX Stockholders of the Opportunity to Lead the Class Action Against Starbucks Corporation
- Starbucks Corporation Investors: Please contact the Portnoy Law Firm to recover your losses. October 28, 2024 Deadline to file Lead Plaintiff Motion
- New Starbucks CEO Brian Niccol wants to fix confusing menu, long waits for coffee
Trading Information
Trading Information
- Previous Close Price
- $93.34
- Day Range
$93.66–98.35
- 52-Week Range
$71.55–107.66
- Bid/Ask
- $98.08/$98.15
- Market Cap
- $111.28 Bil
- Volume/Avg
- 19.3 Mil/14.7 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 26.15
- Price/Sales
- 2.92
- Dividend Yield (Trailing)
- 2.44%
- Dividend Yield (Forward)
- 2.44%
- Total Yield
- 3.82%
Company Profile
Company Profile
Starbucks is one of the most widely recognized restaurant brands in the world, operating more than 38,000 stores across more than 80 countries as of the end of fiscal 2023. The firm operates in three segments: North America, international markets, and channel development (grocery and ready-to-drink beverage). The coffee chain generates revenue from company-operated stores, royalties, sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee sales, and single-serve products.
- Sector
- Consumer Cyclical
- Industry
- Restaurants
- Stock Style Box
- Large Value
- Total Number of Employees
- 381,000
- Website
- https://www.starbucks.com
Competitors
Competitors
- Restaurant Brands International Inc QSR
- Yum Brands Inc YUM
- McDonald's Corp MCD
Valuation
Valuation
| Metric | SBUX | QSR | YUM |
|---|---|---|---|
Price/Earnings (Normalized) | 26.15 | 20.74 | 25.56 |
Price/Book Value | — | 6.83 | — |
Price/Sales | 2.92 | 4.06 | 5.33 |
Price/Cash Flow | 14.24 | 18.96 | 21.79 |
Price/Earnings
SBUX
QSR
YUM
Financial Strength
Financial Strength
| Metric | SBUX | QSR | YUM |
|---|---|---|---|
Quick Ratio | 0.59 | 0.64 | 1.10 |
Current Ratio | 0.89 | 0.78 | 1.44 |
Interest Coverage | 10.28 | 3.59 | 4.71 |
Quick Ratio
SBUX
QSR
YUM
Profitability
Profitability
| Metric | SBUX | QSR | YUM |
|---|---|---|---|
Return on Assets (Normalized) | 14.89% | 6.28% | 24.13% |
Return on Equity (Normalized) | — | 50.32% | — |
Return on Invested Capital (Normalized) | 28.49% | 10.00% | 54.12% |
Return on Assets
SBUX
QSR
YUM
Restaurants Industry Comparables
Restaurants Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| McDonald's Corp MCD | Jsxkwnql | Tphxt | $208.9 Bil | |||
| Chipotle Mexican Grill Inc CMG | Yzbsgyglmw | Xxyk | $74.2 Bil | |||
| Compass Group PLC ADR CMPGY | Zkmgpwdh | Kbmtxx | $54.9 Bil | |||
| Yum Brands Inc YUM | Vscfstwxn | Ggdzb | $37.4 Bil | |||
| Restaurant Brands International Inc QSR | Lfxvdqxsv | Vzjcky | $21.2 Bil | |||
| Darden Restaurants Inc DRI | Wpgrfhy | Rqdlvl | $18.4 Bil | |||
| Domino's Pizza Inc DPZ | Slpmgpskcg | Gxy | $14.6 Bil | |||
| Yum China Holdings Inc YUMC | Wnckqnkj | Yhtgy | $13.0 Bil | |||
| Wingstop Inc WING | Yvdrhrxqy | Pjxmqpl | $11.1 Bil |
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