175.70 -0.46 (-0.26%)
Pre-Market: 7:50AM EST
|Bid||175.50 x 100|
|Ask||176.10 x 300|
|Day's Range||175.60 - 176.83|
|52 Week Range||120.52 - 176.83|
|PE Ratio (TTM)||25.50|
|Earnings Date||Jan 30, 2018|
|Forward Dividend & Yield||4.04 (2.29%)|
|1y Target Est||186.07|
Due to the high visibility in Starbucks’s (SBUX) earnings, we have opted to look at the forward PE (price-to-earnings) multiple. The forward PE multiple is calculated by dividing the company’s stock price from analysts’ earnings estimates for the next four quarters. Starbucks’s expansion plans in China and the expectation of a decline in effective tax rate due to the enactment of tax reforms appear to have increased investor confidence, leading to a rise in Starbucks’s stock price and its forward PE multiple.
For fiscal 1Q18, analysts are expecting Starbucks (SBUX) to post adjusted EPS (earnings per share) of $0.57, which represents growth of 9.6% from $0.52 in fiscal 1Q17. The EPS growth is expected to be driven by revenue growth, a lower effective tax rate, and share repurchases. Share repurchases reduce the number of shares outstanding, thus boosting the company’s EPS.
For fiscal 1Q18, analysts are expecting Starbucks (SBUX) to post revenue of $6.2 billion, which represents growth of 8.1% from $5.7 billion in fiscal 1Q17. The revenue growth is expected to be driven by the addition of new restaurants, positive SSSG (same-store sales growth), and an increase in revenue from channel development and other segments. Compared to fiscal 1Q17, Starbucks operated 405 more company-operated restaurants and 1,200 more franchised restaurants by the end of fiscal 4Q17.
Starbucks (SBUX) is scheduled to announce its fiscal 1Q18 earnings after the market closes on January 25, 2018. In fiscal 4Q17, Starbucks posted adjusted EPS (earnings per share) of $0.55 on revenues of $5.7 billion against analysts’ estimate of $0.56 on revenues of $5.8 billion. Despite posting lower-than-expected earnings, the stock has increased due to the expectation of a decline in its effective tax rate on the enactment of tax reforms and the company’s expansion in China, where the company posted a strong performance in fiscal 2017.
In announcing the appointment, We Are Unlimited made a point of noting that Lou was named to the post by Eric Zuncic, who was appointed chief strategy officer of DDB North America in October of last year. Since We Are Unlimited was launched in late 2016, DDB North America, headed by CEO Wendy Clark, has had a major hand in orchestrating the composition of the McDonald's agency's executive team since its inception.
As far back as early 2016 — shortly after it became the centerpiece of an E. coli gaffe — I’ve been hammering on Chipotle Mexican Grill, Inc. (NYSE:CMG). More than two years later, CMG stock is down on the order of 30%. While many investors have all but given up on Chipotle, I see a light at the end of the tunnel that makes CMG an interesting (even if risky) pick.
On January 19, 2018, Goldman Sachs upgraded Jack in the Box (JACK) from “neutral” to “buy.” However, it has kept its 12-month target price unchanged at $109, which represents a return potential of 14.7% from its current stock price of $94.99. Karen Holthouse of Goldman Sachs expects quick service restaurants to outperform casual restaurants in the initial phase after the enactment of tax reforms. The cold weather across various regions in the US is expected to result in strong near-term trends for quick service restaurants.
In 2017, McDonald’s Corporation (NYSE:MCD) and MCD stock managed to pull off its best annual performance of the last decade. As McDonald’s closed out the final quarter of 2017 with a respectable 7% gain, it seemed all but sure to cross the $200 threshold in 2018. Now, more than halfway through January, MCD stock is struggling to keep up with both the index and its restaurant peers.
Goldman Sachs analysts believe the Winter Olympics are a near-term risk to restaurants, though they are favorable to the restaurant sector.
Red Lobster turns 50 years old this month. Yahoo Finance’s Alexis Christoforous sits down with CEO Kim Lopdrup to talk about the future of the restaurant.