DNKN - Dunkin' Brands Group, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
67.02
-0.06 (-0.09%)
At close: 4:00PM EST

67.00 -0.02 (-0.02%)
After hours: 4:02PM EST

Stock chart is not supported by your current browser
Previous Close67.08
Open66.95
Bid66.93 x 800
Ask67.02 x 800
Day's Range66.72 - 67.34
52 Week Range56.77 - 77.13
Volume1,288,687
Avg. Volume858,937
Market Cap5.536B
Beta (3Y Monthly)0.94
PE Ratio (TTM)14.93
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield1.39 (1.98%)
Ex-Dividend Date2018-11-23
1y Target EstN/A
Trade prices are not sourced from all markets
  • InvestorPlace2 days ago

    Apple’s Warning Is a Reason to Avoid Starbucks Stock

    Did you hear that? That was the world's largest company, Apple (NASDAQ:AAPL), firing a warning shot about slowing growth in the world's hottest economy, China. Everyone heard the shot when it was first fired on January 2. Stocks across the board dropped. But now, less than two weeks later, everyone has seemingly forgotten about that warning shot, and stocks are in rally mode. That's fair. Stocks, by and large, are undervalued, and other risk factors are improving, such as the Fed becoming more dovish and U.S.-China trade talks progressing nicely. But, China's economy is still cooling, and that's bad news for companies with broad exposure to China, regardless of how other risk factors are playing out. One such company is retail coffee giant Starbucks (NASDAQ:SBUX). For all intents and purposes, due to dried up growth everywhere else, the Starbucks stock growth narrative is entirely centered around China. Given Apple's warning shot, that's a worrisome position to be in. Indeed, Goldman Sachs recently downgraded Starbucks stock to Neutral due to the company's broad exposure to the slowing China economy. Goldman actually warns that Starbucks could issue a warning like Apple about slowing growth in the near future. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy That Are Run By Billionaires Goldman hit the nail on the head with this downgrade. To warrant its current valuation, Starbucks stock needs everything to go right. But, because of Apple's warning, we know everything isn't going right in the most important region for the coffee giant. Thus, the current valuation seems due for compression based on weakening growth trends, and that's reason enough to stay away from Starbucks stock in the near term. ### Worrisome Exposure To China The core of the near-term bear thesis on Starbucks stock is that the company has a worrisome level of exposure to China, and that if growth in China falls apart, SBUX's long-term growth narrative will substantially weaken, causing the stock to drop meaningfully. It's not all bad news in China, though. This is still a 6%-plus growth economy. And, while Apple recently issued a big warning about slowing growth in China, Nike (NYSE:NKE) announced two weeks prior that its China business was red hot. My fear, however, is that Starbucks is on the Apple path in China, not the Nike path. Over the past several quarters, Nike's business has been heating up globally. Apple's business has been cooling. So has Starbucks' business. Thus, Nike's ability to maintain strong growth in China is more a function of outstanding operational momentum than anything else. Starbucks doesn't have that. Instead, Starbucks is more comparable to Apple in that growth is positive, but slowing from its multi-year trend. From this perspective, the present situation for Starbucks in China is most likely one defined by slowing growth. That's a big problem. Growth everywhere else is all dried up due to rising competition and saturation. Comparable sales growth in the U.S. has dropped from 5% and up a few years back, to 2% last year, with transaction volume actually down year-over-year. Europe, Middle East, and Africa comps have followed a similar trajectory, also with negative transaction volume growth last year. Thus, the SBUX growth narrative is all about China. If China falls apart, so does this growth narrative, meaning that if China numbers are weak next quarter (as they should be), then Starbucks stock will drop meaningfully. ### Valuation Has Room To Fall In relation to what is likely substantial sales pressure in China, the valuation on Starbucks stock is a tough pill to swallow. Starbucks stock trades at 24x forward earnings. That's below the stock's five-year forward multiple of 25. But, the company is also growing much less quickly today than it has over the past five years. Thus, a lower valuation is warranted. With respect to its peers, that 24 forward multiple actually seems stretched. The forward P/E multiple across the whole restaurant industry hovers right around 22. McDonald's (NYSE:MCD) trades at 22x forward earnings. Dunkin' (NYSE:DNKN) trades at 23x forward earnings. Yum (NYSE:YUM), Jack In The Box (NASDAQ:JACK), and El Pollo Loco (NASDAQ:LOCO) all trade around 18 to 23x forward earnings. Thus, relative to other mid-to-large cap restaurant names with fairly slow but stable growth, Starbucks stock still trades at a premium -- despite worrisome exposure to China. That means that if China's numbers do come in below expectations, SBUX stock could get hit by sizable valuation compression. * 10 A-Rated Stocks the Smart Money Is Piling Into ### Bottom Line on SBUX Stock Starbucks stock is a solid long-term holding given the company's staying power in a stable growth global retail coffee industry. But, at the present moment, the valuation seems overstretched with sizable operational risks on the horizon. That means the near to medium term outlook for this stock skews bearish, despite stable long term fundamentals. As of this writing, Luke Lango was long AAPL and NKE. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Apple's Warning Is a Reason to Avoid Starbucks Stock appeared first on InvestorPlace.

  • Motley Fool5 days ago

    Guidance? We Don't Need No Stinking Guidance!

    How is that even an option?!

  • Why Goldman Sachs Downgraded Starbucks Today
    Market Realist6 days ago

    Why Goldman Sachs Downgraded Starbucks Today

    Why Goldman Sachs Downgraded Starbucks Today ## Goldman Sachs’s downgrade Today, Goldman Sachs downgraded Starbucks (SBUX) from a “buy” to a “neutral” due to concerns about its expansion in China, Starbucks’s second-largest market. Goldman Sachs also lowered its price target from $75 to $68. The new price target represents a potential upside of 5.9% from the stock’s January 10 closing price of $64.19. As reported by CNBC, Goldman Sachs analyst Karen Holthouse wrote in a research note, “The recent AAPL [Apple] announcement (while potentially also product-driven) cited trade concerns/macro, and MCD [McDonald’s] acknowledged softer trends in the region at a late November event. The GS macro team also expects a continued slow down in GDP, at least partially driven by consumption.” ## Other analysts’ recommendations Of the 33 analysts that follow Starbucks, 48.5% are favoring “buys,” 48.5% are favoring “holds,” and 3.0% are favoring “sells” on the stock. On average, analysts have given SBUX a price target of $68.44, which represents a potential upside of 6.6% for the stock. Since the company’s investors meeting on December 13, Morgan Stanley, Barclays, Stifel, JPMorgan Chase, BMO, Wells Fargo, and RBC have all raised their price targets on its stock. On January 10, Morgan Stanley raised its price target from $64 to $70. Barclays raised its price target from $65 to $69 on December 19. ## Stock performance The downgrade appears to have negatively affected Starbucks stock. Today, it was trading down ~2.7% in premarket trading hours. Since the beginning of 2019, it’s fallen 0.3% as of its January 10 closing price. During the same period, its peers McDonald’s (MCD) and Dunkin’ Brands (DNKN) have returned 2.2% and 9.5%, respectively. The broader comparative index, the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests ~7.5% of its holdings in restaurant and travel companies, has returned 5.5% year-to-date.

  • One Tweak Dunkin' Brands Should Really Consider in 2019
    Motley Fool6 days ago

    One Tweak Dunkin' Brands Should Really Consider in 2019

    Hint: It's not a request to increase the chocolate glaze on my favorite doughnut.

  • CEO departures hit highest level since recession
    Yahoo Finance7 days ago

    CEO departures hit highest level since recession

    A record number of CEOs left their posts in 2018.

  • Why Dunkin' Brands Stock Lost 13% in December
    Motley Fool12 days ago

    Why Dunkin' Brands Stock Lost 13% in December

    The coffee and snack chain got caught up in surging market volatility last month.

  • Analysts Favor a ‘Buy’ Rating for Starbucks
    Market Realist15 days ago

    Analysts Favor a ‘Buy’ Rating for Starbucks

    Can Starbucks Maintain Its Upward Momentum in 2019? On average, analysts have set a 12-month price target of $68.64 on the stock, which represents a potential return of 8.8% from its current price of $63.08. Since Starbucks’s investor conference on December 13, during which the company outlined its long-term growth strategies, Barclays, JPMorgan Chase, Stifel, BMO, Wells Fargo, and RBC have raised their price targets on its stock.

  • What to Expect from Starbucks’s EPS in 2019
    Market Realist15 days ago

    What to Expect from Starbucks’s EPS in 2019

    Can Starbucks Maintain Its Upward Momentum in 2019? In fiscal 2018, Starbucks (SBUX) posted adjusted EPS of $2.42, a rise of 17.5% from $2.06 in fiscal 2017. Revenue growth, a lower effective tax rate, and share repurchases drove the company’s EPS during the period.

  • What Led Starbucks’s EBIT Margin to Contract in 2018?
    Market Realist16 days ago

    What Led Starbucks’s EBIT Margin to Contract in 2018?

    Can Starbucks Maintain Its Upward Momentum in 2019? In fiscal 2018, Starbucks (SBUX) posted an EBIT margin of 18.0% compared to 19.7% in fiscal 2017. Also, Starbucks’s licensing of its CPG and foodservice businesses to Nestlé contributed to the contraction in its EBIT margin in fiscal 2018.

  • What Analysts Expect from Starbucks’s Revenue in 2019
    Market Realist16 days ago

    What Analysts Expect from Starbucks’s Revenue in 2019

    Can Starbucks Maintain Its Upward Momentum in 2019? For fiscal 2019, analysts expect Starbucks (SBUX) to post revenue of $26.13 billion, a rise of 5.7% from $24.72 billion in fiscal 2018. For the same period, Starbucks’s management expects its consolidated revenue to rise 5%–7%, including a 2.0% fall from streamline-related activities.

  • What Drove Starbucks’s Revenue in 2018?
    Market Realist16 days ago

    What Drove Starbucks’s Revenue in 2018?

    Can Starbucks Maintain Its Upward Momentum in 2019? The net addition of 1,985 restaurants and global SSSG (same-store sales growth) of 2.0% drove the company’s revenue during the period. The net addition of 271 company-owned restaurants and 624 franchised restaurants along with positive SSSG of 2.0% drove the segment’s revenue during the period.

  • Can Starbucks Maintain Its Upward Momentum in 2019?
    Market Realist16 days ago

    Can Starbucks Maintain Its Upward Momentum in 2019?

    Despite weakness in the broader equity market, with the S&P 500 Index falling 7.7% in 2018, Starbucks (SBUX) has returned 9.8% YTD (year-to-date) as of December 26. Starbucks’s stock price has been driven by its strong fiscal 2018 fourth-quarter earnings, the announcement of the acquisition of a $900 million stake in the company by Bill Ackman’s Pershing Square Capital, and the optimism surrounding its management’s initiatives to drive its sales. In its fourth quarter, which ended on September 30, Starbucks outperformed analysts’ revenue and EPS expectations.

  • All 38 Arizona Rent-A-Centers sold in refranchising deal
    American City Business Journals19 days ago

    All 38 Arizona Rent-A-Centers sold in refranchising deal

    A Florida-based restaurant franchise veteran has purchased all 38 Rent-A-Center Inc. (Nasdaq: RCII) locations in Arizona. Tampa, Florida-based Purple Square Management Co. bought all the rent-to-own furniture, appliance and electronic company’s stores in Arizona. Part of the deal is that the new franchisee has to open five new Rent-A-Center stores in the state during the next few years.

  • Cracker Barrel (CBRL) Sales Building Efforts to Drive Growth
    Zacks23 days ago

    Cracker Barrel (CBRL) Sales Building Efforts to Drive Growth

    Cracker Barrel's (CBRL) marketing efforts, enhanced focus on retail business and increased focus on menu innovation bode well.

  • Is Dunkin Brands Group Inc (DNKN) A Good Stock To Buy?
    Insider Monkey25 days ago

    Is Dunkin Brands Group Inc (DNKN) A Good Stock To Buy?

    The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary […]

  • Darden (DRI) Meets Q1 Earnings Estimates, Raises EPS View
    Zacks29 days ago

    Darden (DRI) Meets Q1 Earnings Estimates, Raises EPS View

    Darden's (DRI) efforts in improving the basic operating factors of the business such as food, service and atmosphere aid the fiscal second-quarter revenues to grow.

  • Zackslast month

    5 Restaurant Stocks That Could Keep Winning Big in 2019

    Demand for restaurant services depends on consumer spending. In an industry which is getting increasingly reliant on digital and delivery services, five restaurant stocks stand to gain in 2019.

  • Simply Wall St.last month

    Does Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) Have A Place In Your Portfolio?

    Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. Historically, Dunkin' Brands Group, Inc. (NASDAQ:DNKN) has been Read More...

  • Zackslast month

    Wendy's Gains 11.9% in 1 Year: Should You Hold the Stock?

    Wendy's (WEN) banks on international expansion and a franchised business model to drive top and bottom-line growth while high expenses are headwinds.

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    4 Appetizing Restaurant Stocks to Bet On This Holiday Season

    Demand for restaurant services depend on consumer spending. In an industry becoming increasingly reliant on digital and delivery services, four restaurant stocks stand out.

  • Darden (DRI) Strategic Efforts Bode Well: Should You Hold?
    Zackslast month

    Darden (DRI) Strategic Efforts Bode Well: Should You Hold?

    Darden's (DRI) sales building initiatives, technology-driven moves and Cheddar's acquisition bode well.

  • Convenience is the driver into the future, says Dunkin Br...
    CNBC Videoslast month

    Convenience is the driver into the future, says Dunkin Br...

    Sara Eisen sits down with Dunkin Brands Chairman Nigel Travis to discuss the company's roadmap into the future.