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Starbucks: Looking Beyond Near-Term Questions

Starbucks’ sale of its packaged and food service businesses to Nestlé, while a comparatively small slice of the coffee giant’s operations, could nevertheless help it sustain revenue growth while also benefiting shareholders in other ways. “We expect the Nestlé deal to result in an acceleration in the rollout of Starbucks packaged and single-serve in both Europe and the Asia Pacific, where Starbucks currently has a very limited share and Nestlé has a dominant position,” they wrote. • The analysts maintained a “neutral” rating and $58 price target, right around current levels, on Starbucks (SBUX) shares, which have roughly tracked the S&P 500 in 2018.