Starbucks Corporation ($SBUX) Earnings (Q2 FY22)

 Starbucks Corporation ($SBUX) Earnings and Opinion:


Starbucks is a company in the Consumer Cyclical sector and operates in the Restaurants industry. The company makes specialty coffee and has locations worldwide. Starbucks was founded in 1971 and is currently headquartered in Seattle, Washington. The company saw its first days on the stock market come in 1992.

Starbucks EPS and Revenue (Q2 FY22):

  • EPS of $0.59 missing expectations of $0.60
  • Revenue of $7.64B beating expectations of $7.60B
Starbucks Q2 Financial Highlights:
  • Revenues were up 15% (YOY)
  • Comparable store sales were up 7%
  • Opened 313 new stores in Q2
  • Rewards Loyalty members increased by 17%
Opinion:
Starbucks stock is currently rising today, after reporting earnings yesterday. The company had a solid earnings report even though they missed expectations on EPS. However, they were able to beat the expectations on revenue and grew their revenues by 15%. One thing to look at when looking at Starbucks is the comparable store sales. They were able to grow those at 7% on a year-over-year basis. The stock price has been slammed since the beginning of the year and has brought the valuation ratios down. The decrease in the stock price doesn't reflect the company itself though. They have a solid business running for them, with about 50% of stores being franchises and the other 50% being actually owned by the company. Something innovative that they are doing now is starting to offer its drinks in cans at local stores. This will help them a lot with not only increasing revenue, but they will also be able to get some more brand recognition in a sense. I am currently a shareholder of Starbucks and currently have an unrealized loss on them right now. However, I am not panicking at all. I love this earnings report and I truly believe this is what investors needed to boost their confidence back into this company. Sure this company has some controversy going on with them due to all the union talks. It doesn't take away that they reported record revenues in Q2 and that they are back to operating at pre-pandemic levels. They are doing this while trading at lower valuations too, so that means if you are looking to get into this company, now would be an ideal time to do so.

*Information from Starbucks, Google, Yahoo Finance


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