Starbucks rises after lifting annual forecasts again
SBUX•Brokerage and analyst context
Jefferies raises PT to $101 from $93, and maintains 'Hold' stance on the stock.
Brokerage says much of Starbucks’ same-store sales growth was driven by the closure of underperforming stores and the resulting shift of sales to other locations, along with stronger delivery demand and longer store operating hours.
It adds that the remaining growth came from operational improvements under the Green Apron initiative, higher marketing spending, expansion of the Rewards program, and menu innovation, particularly strong demand for Refreshers.
The company posted Q2 adjusted EPS of 85 cents vs estimates of 66 cents.
Forty analysts rate stock "Hold" on average; median PT is $110 - data compiled by LSEG.
Up to last day's close, the stock had risen ~23.7% YTD.
Shares rise after another forecast increase
Shares of coffee chain Starbucks SBUX.N rise nearly 4.4% to $108.50 premarket.
The company raised its annual sales and profit forecasts for the second time, as CEO Brian Niccol's years-long turnaround efforts reignite demand at the world's largest coffee chain.
