Eateries know they need to be where their customers are: on phones, preferably in the form of an app through which orders can be placed and paid for. was one of the early adopters in this regard – it rolled out the first iteration of its mobile app in January 2011 – and has been reaping the benefits ever since. When we divide the current volume by the three-month average volume, we get a relative volume of 3.72.
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Some analysts aren’t buying that.
Zacks also provides a simplified scale for analyst recommendations.
The coffee chain disclosed lower-than-expected sales growth on Thursday, Jan. 26, with part of the blame pinned on congestion inside stores that push some customers to leave without a purchase.
Starbucks Corporation (NASDAQ:SBUX) is over 8% above analysts’ consensus price target of US$64.73. And tune in next week for more Market Challenge! The shares recently took a bounce off their 50-day moving average, and are extending their lead above their 200-day moving average, which previously acted as resistance in mid-2016.
Another concern: Starbucks no longer has much room to grow in its home market, said Jennifer Bartashus, an analyst at Bloomberg Intelligence. Highlighting the company’s strong growth in mobile orders and payments, this figure is up significantly from 3% in the year-ago quarter. In the USA, mobile payments already account for about 27 percent of transactions.
Starbucks Corporation shares fell $2.22 (-3.8%) in after-hours trading Thursday. Revenue was $5.7 billion and EPS was $0.52 for the previous quarter. Customers loaded $2.1 billion on Starbucks cards in the US and Canada in the quarter, up 15 percent. Starbucks card transactions account for 40% of all US company-operated-store transactions.
The Americas region contributed 62 per cent of Starbucks’ total net revenue in the latest fiscal year.
Other options include reworking routines and testing text notifications that alert customers when their orders are ready for pickup.
Johnson is taking the reins from Howard Schultz, who served two stints as CEO and built Starbucks into a global coffee empire. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company.
Credit Suisse analysts, like those at Buckingham Research, are bearish, expressing concern that sales and margin guidance will be hard to achieve in the near term and searching for signs that same-store sales will improve. In most recent quarter, LT Debt/Equity ratio was listed at 0.54 and Total Debt/Equity ratio was noted at 0.61.
Stephens analyst Will Slabaugh expects Starbucks to work the kinks out of mobile ordering and pay, but remains concerned about the broader restaurant demand environment.
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Starbucks Corporation (NASDAQ:SBUX) has been assigned a $65.00 target price by analysts at Sanford C. Bernstein in a report released on Friday.
