Report
R.J. Hottovy
EUR 101.80 For Business Accounts Only

Starbucks Still Offers Long-Term Growth, but Soft Sales Suggest Room for Operational Improvements

Starbucks' third-quarter update effectively forces investors to choose one of two narratives: (1) Soft U.S. transaction growth is a byproduct of an evolving landscape but shouldn't overshadow the company's digital, menu innovation, international growth, and new restaurant format opportunities; or (2) soft U.S. transaction growth is the result of a brand stretching itself too thin across target audiences and opening the door for competition. We fall on the side of the former, as 5% comps in the U...
Underlying
Starbucks Corporation

Starbucks is a roaster, marketer and retailer of coffee. The company's segments are: Americas, which is inclusive of the United States, Canada, and Latin America; International, which is inclusive of China, Japan, Asia Pacific, Europe, Middle East, and Africa; and Channel Development. The company's Americas and International segments include both company-operated and licensed stores. The company's Channel Development segment includes roasted whole bean and ground coffees, Seattle's Best Coffee?, Starbucks- and Teavana-branded single-serve products, a variety of ready-to-drink beverages, and other products sold worldwide outside of the company's company-operated and licensed stores.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
R.J. Hottovy

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