Group 1 - Starbucks has a market value of $92.6 billion and trades at approximately $81.50 per share as of April 18, 2025 [2][4] - The company pays a quarterly dividend of $0.61 per share, totaling $2.44 annually, requiring 410 shares to generate $1,000 in annual dividend income [2][4] - The current forward-looking price-to-earnings (P/E) ratio is 28, which is near its five-year average, indicating that the stock is reasonably priced [4] Group 2 - The dividend yield for Starbucks is 3%, calculated by dividing the annual dividend amount by the current stock price [5] - The quarterly dividend has increased from $0.57 to $0.61, reflecting a 7% increase last year, and has grown at an average annual rate of 8% over the past five years [5] - If the dividend continues to grow at 7% annually for the next 10 years, the quarterly payout could reach $1.20 per share, resulting in nearly $2,000 in annual income from 410 shares [5] Group 3 - The new CEO, Brian Niccol, is implementing a turnaround plan focused on reducing customer wait times and improving overall service [4]

Core Viewpoint - Dutch Bros has shown significant growth potential, with shares up 98% over the past year, while Starbucks faces challenges with a 28% decline from its 52-week high [1] Group 1: Dutch Bros Overview - Dutch Bros has recently opened its 1,000th location, aiming for a total of 7,000 stores, up from a previous target of 4,000 [2][4] - The company emphasizes convenience through drive-through locations, a diverse menu for customization, and friendly customer service [2] - Dutch Bros has a strong presence in the western and southern U.S., indicating substantial opportunities for national expansion [3] Group 2: Financial Outlook - If Dutch Bros successfully expands its store count seven-fold, it could lead to significantly higher revenue and net income, making its current price-to-earnings ratio of 174 less relevant [4] - The leadership team at Dutch Bros is optimistic about performance, which is reflected in their ambitious growth targets [4] Group 3: Starbucks Overview - Starbucks reported a 4% decline in same-store sales for the first quarter of fiscal 2025, marking the fourth consecutive quarter of year-over-year declines [5] - Customer dissatisfaction has been attributed to price increases, long wait times, and menu complexity, alongside potential losses due to political or social issues [6] - Despite current challenges, Starbucks maintains a strong brand recognition and scale, with over 17,000 stores in the U.S. and nearly 41,000 worldwide, providing cost advantages [7] Group 4: Future Projections - Consensus analyst estimates predict a 24% increase in earnings per share for Starbucks in fiscal 2026, followed by a 19% increase the next year, suggesting potential recovery [8] - The leadership team at Starbucks is focused on improving customer experience and employee support to facilitate a turnaround [11] Group 5: Investment Considerations - Dutch Bros stock presents a higher upside potential over the next decade, contingent on successful execution of its growth strategy [9] - However, Starbucks is viewed as the better stock to buy currently due to its competitive strengths and ongoing efforts to improve performance in a competitive market [10]

Core Viewpoint - Starbucks is expected to report its fiscal Q2 results on April 29, with investors hoping for a rebound in stock performance despite a year-to-date decline of 10% and a 28% drop from its 52-week high of $117 per share [1][4]. Financial Expectations - Q2 sales are projected to reach $8.79 billion, reflecting a 2% increase from $8.56 billion in the same quarter last year [4]. - International revenue is anticipated to rise by 5% to $1.84 billion compared to $1.75 billion in the prior period [4]. - Q2 EPS is expected to decrease to $0.49 from $0.68 per share a year ago, indicating a significant decline [5]. Earnings Performance - Starbucks recently exceeded Q1 EPS expectations by 4%, but has shown an average earnings surprise of -2.34% over the last four quarters [5][6]. - The reported earnings history shows fluctuations, with an average surprise of -2.34% across the last four quarters [6]. Stock Performance - Over the last two years, Starbucks stock has decreased by 24%, and it has only gained 11% over the last three years, underperforming the broader index which has returned over 30% [7]. - The stock is currently trading at 28.6X forward earnings, which aligns with its decade-long median and is below the peak of 95.8X during this period [8]. Valuation Insights - Starbucks' valuation is not excessively high compared to the S&P 500's forward earnings multiple of 21.2X and the Zacks Retail-Restaurants Industry average of 26.2X [8]. Future Outlook - Currently, Starbucks holds a Zacks Rank 3 (Hold), with expectations for a resurgence in profitability next year, but it may be premature to consider it a buy for a sustained rebound [9]. - The potential for meaningful upside is contingent on Starbucks meeting or exceeding Q2 expectations and providing guidance that indicates a return to growth [9].

Starbucks Corporation (SBUX) is scheduled to report second-quarter fiscal 2025 results on April 29, 2025, after the closing bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 4.6%.Trend in Estimate Revision of SBUXThe Zacks Consensus Estimate for fiscal second-quarter EPS has declined to 49 cents from 52 cents in the past 30 days. The expected figure indicates a fall of 27.9% from the year-ago quarter’s 68 cents per share. (See the Zacks Earnings Calendar to ...

Starbucks (NASDAQ: SBUX ) (NEOE: SBUX:CA ) continues to grab my attention, and as its earnings approach, I see three red flags that I would like to bring to everyone's attention. In fact, we should not ignore that, when a stock such as Starbucks, with itsI focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time, I have come to ...

Wall Street analysts forecast that Starbucks (SBUX) will report quarterly earnings of $0.49 per share in its upcoming release, pointing to a year-over-year decline of 27.9%. It is anticipated that revenues will amount to $8.79 billion, exhibiting an increase of 2.6% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 2.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial project ...

Core Insights - Starbucks appointed Brian Niccol as the new CEO to revitalize sales growth, particularly in the U.S. and China, which are its largest markets [1] - Prior to Niccol's appointment, Starbucks experienced a decline in same-store sales, with a drop of 7% in the fiscal fourth-quarter of 2024, including declines of 6% in the U.S. and 14% in China [2] Investment Performance - Over the past five years, Starbucks shares have shown volatility, with a price increase of 5.7% and a total return of 17.7% when including dividends, making a $5,000 investment worth approximately $5,285 today, or $5,886 with reinvested dividends [3] - In comparison, the S&P 500 index returned over 84% during the same period, indicating that a $5,000 investment in the index would be worth over $9,180, highlighting Starbucks' underperformance relative to the broader market [4] Current Market Conditions - Early in Niccol's tenure, fiscal first-quarter same-store sales in the U.S. fell by 4%, while China saw a 6% decline [5] - The current valuation of Starbucks stock, with a price-to-earnings (P/E) ratio of 26, is not considered a discount compared to the S&P 500, which has the same P/E ratio, although Starbucks' P/E is slightly lower than its 10-year median of 30 [4][5]

Starbucks on Monday revealed a new dress code for java-slinging baristas as CEO Brian Niccol bets on creating a comfortable, welcoming environment to boost the sagging company’s sales.Starting May 12, employees will have to wear solid black tops, and will be issued two shirts from a new, company-branded line at no cost. Previously, the baristas were allowed to wear any color shirt they chose. The workers must also wear khaki, black or blue denim bottoms. The prior dress code had allowed for gray and brown s ...

Starbucks is implementing a new dress code for workers across its North American stores next month, as the coffee giant aims to refresh its store image and boost business under CEO Brian Niccol. As part of the updated dress code, effective May 12, employees will be required to wear solid black short-sleeve or long-sleeve shirts, which can either be a crew neck, collared or button-up style. Employees may also wear bottoms in any shade of khaki, black or blue denim. Each employee will also get two company-bra ...

Starbucks Corp SBUX is serving up a fresh cup of investor anxiety as social media boycotts boil over and technical signals point to a prolonged bearish brew.With shares down nearly 13% in the past month and "Boycott Starbucks" trending across X, the world's most iconic coffee chain is finding itself in hot water—both on Wall Street and Main Street.Read Also: China’s Milk Tea Chain Chagee Files For Nasdaq IPO Under ‘CHA,’ Taking On Starbucks In Growing MarketBoycott Buzz Meets Brewed ResistanceWhat started a ...