$Starbucks(SBUX.US) (-2.0%, no position) still seems more hype than substance. Many bulls are discounting a quick turnaround by CEO Brian Niccol (former CEO of $Chipotle Mexican Grill(CMG.US), where he worked miracles). 3Q SSS was a disappointing -2.0% vs -1.5% expected. North America SSS were -2.0% vs -2.5% expected. Adj EPS was $.50 vs $.64 expected. China was the bright spot with SSS +2.0% vs +1.4% expected. Rev of $9,436M was ahead of $9,293M est.
Niccol claims the company’s turnaround efforts are “ahead of schedule” and he vowed to unleash a wave of innovation in 2026, including protein infused cold foam added to drinks.At 32x FY’26 ests of $2.82 SBUX seems rich to us unless SSS comps turn positive. SBUX shares reached $97 pre-mkt on hopes that the Niccol turnaround is happening. We’re not so sure.The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
