Starbucks Downgraded to Sector Perform While Aiming to Double 22,000 Stores
SBUX•RBC Capital cut its rating on Starbucks to Sector Perform from Positive as shares trade at $98.76, valuing the company at $112.56 billion. Starbucks plans to double its 22,000 international stores and add 5,000 new units across the U.S.
1. Analyst Rating Change
RBC Capital lowered Starbucks' rating from Positive to Sector Perform, signaling expectations of in-line performance with industry peers. The rating change follows a recent 1.39% share increase to $98.76, placing the company’s market capitalization at approximately $112.56 billion.
2. International Growth Strategy
Starbucks CEO Brian Niccol outlined plans to expand the global footprint by doubling the existing 22,000 international stores. This aggressive target underscores a focus on high-growth markets and the potential for significant revenue contribution outside North America.
3. U.S. Expansion and Japanese Unit Options
Domestically, Starbucks aims to open at least 5,000 additional stores across the U.S., leveraging established brand strength. Concurrently, the company is evaluating strategic options for its Japanese business, which may include selling a stake in the unit to unlock value.
