Starbucks, a big company that sells coffee and other drinks, will tell everyone how much money they made in the last three months. Some people who know a lot about companies think Starbucks will make less money this time than last time. This could make some people who own Starbucks stock worry. But some people might still want to buy Starbucks stock because a big company called Elliott Investment Management wants to own more of it. Read from source...
- The article is not well-structured and has some grammatical errors.
- The article lacks a clear thesis statement and does not provide a concise summary of the main points.
- The article does not provide any evidence or data to support the claims that Starbucks is likely to report lower Q3 earnings and that the most accurate analysts have revised their forecasts.
- The article uses vague and subjective terms such as "most accurate analysts" and "recent" without specifying the criteria or the time frame.
- The article cites a photo of Starbucks as a source, which is irrelevant and unprofessional.
- The article mentions a recent WSJ report about Elliott Investment Management taking a stake in Starbucks, but does not explain how it relates to the earnings outlook or the analyst ratings.
- The article ends with a promotion for Benzinga's services, which is inappropriate for a news article.
Starbucks (SBUX)
Starbucks (SBUX) is set to report Q3 earnings, with analysts expecting a decline in earnings per share from $1.00 to $0.93. However, the company is expected to report an increase in revenue from $7.1 billion to $9.24 billion. Analysts at Deutsche Bank, Citigroup, JP Morgan, and HSBC have recently rated the company, with most of them maintaining a Hold rating. Starbucks shares are up 1.5% in the last five trading days and 3.2% in the last month. The company has a dividend yield of 2.19% and a price-to-earnings ratio of 23.12.
Starbucks has been expanding its global presence through strategic partnerships and acquisitions. In 2021, the company announced a strategic partnership with Uber Eats to expand its delivery service in the US and Canada. Additionally, Starbucks completed the acquisition of the remaining 43.4% stake in its Chinese joint venture, Starbucks China, for $1.3 billion, further solidifying its position in the fast-growing Chinese market.
Key risks for Starbucks include global economic uncertainty, inflation, and supply chain disruptions, which could negatively impact consumer spending and demand for the company's products. Moreover, increasing competition from fast-food chains and other coffee shops could also put pressure on the company's market share and profitability.
Investment recommendation:
Given the expected decline in earnings per share and the potential risks mentioned above, Starbucks may not be the best investment option at the moment. However, the company's strong brand recognition, global expansion, and consistent dividend payments could make it an attractive long-term investment for investors seeking exposure to the restaurant and coffee industry. Investors could consider waiting for a better entry point or a pullback in the stock price before initiating a position.