Starbucks Receives Mixed Analyst Ratings Amid Challenging Industry Data

Jefferies's Andy Barish lowered their price target on Starbucks (NASDAQ: SBUX) by 6% from $100 to $94 on 2024/04/16. The analyst maintained their Hold rating on the stock.

In an earnings preview note for companies reporting Q1 2024 earnings through the week of April 29, the analyst provided insights into the Restaurants portfolio. According to the analyst, recent industry data remains "somewhat choppy." However, they see opportunities for "modest upside" at Bloomin' Brands, BJ's Restaurants, Domino's Pizza, and McDonald's. On the other hand, they cautioned that Starbucks may miss the Street's expectations.

The analyst also made changes to price targets for several other companies in their portfolio. Jefferies's Andy Barish raised their price target on Domino's Pizza Inc by 5.5% to $480 and maintained their Hold rating. They also raised their price target on Chipotle Mexican Grill Inc by 14.9% to $2,700, and maintained their Hold rating. Texas Roadhouse Inc saw its price target raised by 13.3% to $136, while Wingstop Inc's price target was increased by 8.1% to $335. Both Texas Roadhouse Inc and Wingstop Inc retained their Hold ratings.

Looking at the sentiment among analysts, 41.7% of top-rated analysts currently rate Starbucks as a Strong Buy or Buy, while 58.3% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that Starbucks will deliver earnings per share (EPS) of $3.96 in the upcoming year. If the analysts are correct, Starbucks' next yearly EPS will increase by 5.4% on a year-over-year basis.

Taking a closer look at Starbucks' stock performance, it has experienced a decline of 11% since its last quarterly report on December 31, 2023. On a year-over-year basis, the stock is down 21.1%. During this period, Starbucks is slightly trailing the overall performance of the S&P 500, which is down 21.7%.

Jefferies analyst Andy Barish is highly regarded on Wall Street, ranking in the top 19% out of 4,551 Wall Street analysts according to WallStreetZen. Barish boasts an average return of 8.9% and a win rate of 52.4%. Their expertise lies in the Consumer Defensive, Consumer Cyclical, and Communication Services sectors.

Starbucks Corporation, a leading global coffee company, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Starbucks' extensive range of products includes coffee and tea beverages, roasted whole beans and ground coffees, single-serve products, and ready-to-drink beverages. Additionally, the company offers various food products such as pastries, breakfast sandwiches, and lunch items. Starbucks licenses its trademarks through licensed stores, as well as grocery and foodservice accounts. With thousands of company-operated and licensed stores both in North America and internationally, Starbucks has established itself as a prominent player in the coffee industry since its founding in 1971.

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