SBUX - Embedded Expectations Analysis - 2021 01 19
Starbucks Corporation (SBUX:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 44.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is excited about their curbside stores and confident in mobile order usage and their comparable store sales in ChinaSpecifically, management generated an excitement marker when saying they expect to have 2,000 curbside stores by the end of 2021. Moreover, they are confident they saw stable ticket growth, mobile order and pay usage increased throughout the quarter, and monthly comparable store sales improved in China. In addition, management is confident about their sales and profitability trends in America this quarter, and that they can reach more customers digitally. Finally, management is confident they have expanded their store count in China and expect a full comparable store sales recovery in the US by the end of the year
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.