|Bid||78.30 x 800|
|Ask||78.35 x 1300|
|Day's Range||77.26 - 78.64|
|52 Week Range||50.02 - 99.72|
|Beta (5Y Monthly)||0.80|
|PE Ratio (TTM)||27.67|
|Forward Dividend & Yield||1.64 (2.09%)|
|Ex-Dividend Date||May 07, 2020|
|1y Target Est||N/A|
Illinois on Friday became the next big state to allow a number of businesses to reopen as states continue to ease restrictions imposed to fight the spread of the coronavirus around two months ago —although Chicago must wait until June 3. Meanwhile, New York City is on track to begin the first phase of reopening on June 8, Gov. Andrew Cuomo said Friday, making it the last part of the state to reach that phase.
Demonstrators marched, stopped traffic and in some cases lashed out violently at police as protests erupted Friday in dozens of U.S. cities following the killing of George Floyd after a white officer pressed a knee into his neck for more than eight minutes while taking him into custody in Minnesota.
Global coffee giant Starbucks is one of top growth stocks to watch in 2020, but is it a buy in the current stock market rally?
(Bloomberg Opinion) -- The IPO market just got a shot of caffeine from JDE Peet’s BV. Don’t expect other consumer listings to get such a rush.The owner of Peet’s Coffee, Douwe Egberts, Kenco and Tassimo on Friday priced shares in its initial public offering at 31.50 euros, in the upper half of the offering range, valuing the company at 15.6 billion euros ($17.3 billion), and rose to about 35.50 in mid-morning trading.The biggest European IPO this year, pulled off in a swift 10 days, is a remarkable feat for a consumer business in the midst of a pandemic and a looming global recession. But JDE Peet’s has been uncannily well-placed to capitalize on changing consumer habits during lockdown, the prospects for reopening and a resurgence in equity markets. The Dutch company was floated by JAB Holding Co., the investment fund backed by Germany’s billionaire Reimann family. Cornerstone investors, including funds run by George Soros’s firm, had agreed to take up a third of the offering, setting the tone.In a world crowded with coffee chains, JDE Peet’s gets 80% of its sales from coffee that is drunk at home. That meant it benefited as corner cafes shuttered and people working from home were forced to become their own baristas. Now that they can start going out again, it’s ready to serve them their favorite hot beverage too at the Peet’s Coffee chain. And just as Nestle SA benefited from people looking to stock up on the Starbucks-branded coffee it sells in supermarkets, so JDE Peet’s may gain new customers at its cafes if they discovered its products in the grocery store during lockdown. As consumers navigate post-lockdown life, JDE Peet’s looks well insulated. That may explain why the valuation, as of mid-morning trading, is approaching that of Starbucks Corp. on a calendar 2019 enterprise-value-to-Ebitda basis. With consumers likely pulling in their purse strings, homemade coffee may be more popular than pricey takeaway lattes. Yet the valuation may also reflect optimism about reopening, and expectations that people will be eager to get out and about. Early indications from U.S. retailers, such as discount-chain owner TJX Cos Inc. and even department store Macy’s Inc., are that sales have been stronger than expected since Americans were able to shop in person once again.And let’s not forget about the IPO timing with stock markets gaining from their lows in March. That may be one reason why Peet’s was so keen on an accelerated book build: to avoid any sudden market turbulence.The fortunate confluence of factors may not come together for other consumer-facing groups looking to float or spin off a division. L Brands Inc.’s desire to eventually separate its Victoria’s Secret lingerie chain comes to mind. It was grappling with a tired image and too many stores even before the Covid-19 outbreak.As for Peet’s, the successful float leaves it with firepower for further acquisitions. It plans to use the proceeds to cut debt — it aims to reduce the leverage ratio from 3.6 times to below 3 times by the end of the first half of 2021 — but it gets an acquisition currency in the form of equity.Competition for coffee assets has been intense. There was a flurry of deals two years ago with JAB’s $2 billion purchase of Pret A Manger, which sells coffee as well as food to go; Coca-Cola Co.’s $5.1 billion swoop on Costa Coffee; and Nestle’s $7 billion deal for the rights to sell Starbucks coffee in supermarkets.But JDE Peet’s could get lucky here, too, particularly in the market for drinking coffee outside the home. With the lockdown-induced distress in malls and on main streets, it may be able to grab something to go for a better price.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
This season has been more subtle than previous years, as the coronavirus pandemic has slowed campaigns. Many assumed that investors would quietly increase stakes. But while the broader market still trades below February highs, many sectors aren’t exactly cheap.
(Bloomberg) -- Starbucks Corp. and Nestle SA, the maker of Nescafe and Nespresso coffee, could see their brands grab a bigger share of the market as the virus lockdowns end, limiting consumer choices.Futures prices for arabica coffee, the kind used by Starbucks, have fallen 26% in New York this year. The drop comes as the pandemic has curbed demand at coffee shops, restaurants and offices, and as global supply has surged.Bigger coffee makers like Nestle and Starbucks have more capacity to survive the closures than smaller, specialty producers, according to James Watson, a senior beverage analyst for Rabobank International. The result: “We may see a lot of coffee-shop closures, creating a bit of a vacuum” when communities open up, Watson said.“Big players, with ready access to retail will be positioned to fill that gap,” Watson said by telephone. “That may happen through an acquisition, or taking the business accounts from another company. There might be a lot of closures, and there may not be many high-end options for consumers.”Nestle decline to comment for this story, but in an April 24 earnings call, Francois-Xavier Roger, the company’s chief financial officer, said being an out-of-home business in the coronavirus era is a “tremendous burden.”As a result, he said, “we want to offer prompt and pragmatic assistance to some of our out-of-home and food service partners to help them to weather the crisis and help them to restart the business, that’s really the idea.”Meanwhile, Starbucks CEO Kevin Johnson said last week that his company’s sales are recovering as the coffee chain moves toward normalizing its operations. The Seattle-based chain aims to reopen 90% of its U.S. locations by early June, with most limited to drive-through, delivery and pickup at store entries.“Over the last week, we have now regained about 60-65% of prior year comparable U.S. store sales while reopening under modified operations and with reduced hours,” Johnson said in a statement.Supermarket SalesFor the time being, consumers are buying more coffee to get their fix at home, aiding producers like Nestle. In the 13 weeks ended May 17, U.S. retail sales at supermarkets and other outlets rose 15% from a year earlier, according to data from Chicago-based market researcher IRI.But “at-home increases for coffee will never compensate for food-service loss,” according to Judy Ganes, the president of J. Ganes Consulting, which follows the industry. “Recovery won’t be quick.”Before the virus hit, Chris Nolte and Paul Massard sold about 2,000 pounds a week of their Per’La Specialty Roaster to Miami-area hotels, restaurants and in the single coffee ship they ran. They started the roaster operation in late 2015, mostly focusing on hotels, and added the coffee shop two years ago.Once the closures began, bringing the city’s tourist season to a brutal halt, that number dropped by 85%, according to Nolte. Now the two men, who met during their first semester in business school back in 2001, have pivoted to social media and online sales to overcome at least some of the sales dearth.Still Positive“We are using mostly Instagram and Facebook,” Nolte said in a phone interview from their roasting plants just outside Coral Gables. Initially, the company had nine employees, but Nolte and Massard are the only two left working.Nolte, though, remains positive.“I am very optimistic that we have what it takes to survive this test and come out on the other side, even stronger,” Nolte said. “It would be impossible for me to be an entrepreneur and not be optimistic.”Their challenges mirror the headwinds facing thousands small producers and shops globally.Job LossesThe restaurant industry alone is set to lose 7.4 million jobs, consulting firm Challenger, Gray & Christmas Inc. estimates.Massimo Zanetti, an Italian based roaster, with operations in Europe, U.S. and the Americas, has already said that weak food-service sales, particularly in Southern Europe will hurt its profits.“In order to reduce as much as possible this impact, we are working to reduce our operating expenses and our CapEx by selecting and working only on high-priority projects,” Pascal Heritier, Massimo Zanetti’s chief operating officer, said on a call.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Jason Dressel, Managing Director at History Factory By John Jannarone The coronavirus pandemic has created questions among senior executives around the world they’ve never needed to address. One place they’ve been looking: Their counterparts at other corporations. And with the recent launch of History Factory’s COVID-19 Corporate Memory Project, there is a living […]
Pershing Square Capital Management hedge-fund manager Bill Ackman told investors on a call on Wednesday that he is dumping Warren Buffett’s Berkshire Hathaway. The stocks he bought more of and is keeping are worth paying attention to.
Starbucks (SBUX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
On a hot summer day, would you choose an ice-cold can of Coca-Cola (NYSE: KO) or a Starbucks (NASDAQ: SBUX) blended Frappuccino? Coke is the eternal classic, while Starbucks is the drink of a new generation. The two companies have very different operating models, the first noticeable difference being that Starbucks mostly operates through owned retail stores while Coke is a manufacturer that wholesales its products to stores and restaurants.
Billionaire hedge fund manager Bill Ackman said that his Pershing Square Capital Management Ltd. has exited investments in Warren Buffett’s Berkshire Hathaway, the Blackstone Group Inc. (BX) and Park Hotels & Resorts (PK).Pershing Square’s stock holding in Berkshire was valued at about $1 billion as of the end of March. Ackman divested the Blackstone position as shares have soared about 57% over the past two months, erasing all of their losses from earlier this year.Despite strong stock market volatility triggered by the coronavirus pandemic, Pershing’s portfolio this year returned 27% on its investments as of May 26.Speaking on an investor conference call, Ackman said that Pershing Square has about 85% to 98% of its assets invested in its funds and is holding cash positions of between 15% and 20%.“We think it's a very different environment than when we made the investment in Berkshire a year ago”, said partner Ryan Israel, who oversaw Pershing’s Berkshire investment, on the investor call. “We continue to think Berkshire will be a strong investment over the longer term, but we also think the current environment means there may be more than typical opportunities for us to see very high-returning investments and we wanted to make sure we have enough cash.”At the beginning of the year, Ackman moved to protect the firm’s stock portfolio against coronavirus-related panic selling in markets by buying credit default swaps. Pershing Square yielded a stellar $2.6 billion from hedging its stock portfolio through the credit protection.Ackman said that today, “we have $10 billion of capital to invest; we can be much more nimble," adding that he wants to “take advantage of that nimbleness, preserve some extra liquidity in the event that prices get more attractive again."The billionaire investor informed investors that Pershing increased its positions in Agilent Technologies Inc. (A) by 16% at an average price of $64.57, while the stock is now trading at $86.18 a share. He also ramped up the portfolio’s stakes in Lowes Companies (LOW) at $84 a share (now trades at $128 a share), Howard Hughes, Restaurant Brands International (QSR), as well as rebuilt the Starbucks position at $60 a share. Shares in the coffee chain are currently trading at $78.60.“So far so good,” Ackman said. “Everything we currently own is undervalued.”Some analysts view Blackstone as a worthwhile investment. CFRA recently upgraded Blackstone to Buy from Hold, citing the company’s attractive valuation. “We view positively the secular growth opportunities at Blackstone, evidenced by 2019 asset inflows that topped $134 billion” CFRA said.“Though near-term results could be uneven amid market uncertainty and volatility, demand for private-equity investments will be fueled by the persistently low interest-rate environment” the firm explained, adding that Blackstone is also poised to deploy its more than $150 billion of unallocated capital in a marketplace where asset values have become more attractive.Shares in Blackstone rose less than 1% to $56.46 as of Wednesday’s close.Turning now to the Street’s outlook on Blackstone stock, TipRanks data shows that Wall Street analysts are still cautiously optimistic. The Moderate Buy consensus consists of 8 Buy and 4 Hold ratings. However, in view of the recent share rally, the $53.85 average price target now implies 4.6% downside potential over the coming year. (See Blackstone stock analysis on TipRanks).Related News: Gates Foundation Buys Up Amazon, Apple, Twitter Stock; Trims Berkshire Hathaway Stake Billionaire Ackman Takes New Bet On Blackstone, Trims Chipotle Stake Buffett’s Berkshire Shaves Off 84% Of Its Goldman Sachs Stake More recent articles from Smarter Analyst: * Elon Musk Reaps Payout Worth $775M, As Analyst Admits Tesla Is ‘Turning A Corner’ * Costco Pulls Back On Earnings; Top Analyst Sees Buying Opportunity * Cisco To Buy ThousandEyes For Reported $1B; Top Analyst Sees Strong Synergy Potential * Salesforce Sinks 3.5% After-Hours As Guidance Slashed
Ackman still likes Berkshire, calling it a “strong investment” but thinks his fund is better equipped to move quickly as new opportunities present themselves.
Warren Buffett isn't going to invest in every good value stock that's available on the markets -- there are just too many of them out there. With a good mix of value, stability, and moat, the three stocks listed below could appeal to investors who want to invest like the Oracle of Omaha. Walgreens Boots Alliance (NASDAQ: WBA) is a household name and the pharmacy retailer provides many day-to-day essentials for customers.
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]
You could ask 100 different analysts what they think about buying and selling stocks during COVID-19, and you might just get 100 different opinions. If you have $1,000 to invest, now could be a great opportunity to start a new position, and billion-dollar hedge fund managers have been scooping up shares of IDEXX Laboratories (NASDAQ: IDXX), Goodyear Tire (NASDAQ: GT) and Starbucks (NASDAQ: SBUX). You may not recognize IDEXX Laboratories, but if you're a pet owner there's a chance you've crossed paths with its products or services already.
Senate legislation builds in a three-year grace period, meaning New York will remain home to Chinese companies’ listings for some time.
Dunkin’ Brands and Starbucks get about 60% of their sales before 11 a.m., meaning there’s more downside risk to their stocks from a lack of breakfast bounce-back than to peers, according to Evercore ISI.
The coronavirus crisis has effectively reset the board. While both the economy and stock market will someday return to their earlier-year strength, neither will look the same. That means some of the best stocks to buy right now might look much different from top picks just a few quick months ago.The market might very well have another leg down. It's far too early to say we're out of the woods given that most of America is under quarantine and we have yet to see what first-quarter earnings and second-quarter guidance looks like. But we're getting late in the game for a truly defensive posture. That's closing the barn door after the horse has already bolted. While a few protective picks might be in order, now is the time to start planning for the next bull market.Even professional bears are seeing the light at the end of the tunnel."I'm selectively buying in my personal accounts," says John Del Vecchio, co-manager of the AdvisorShares Ranger Equity Bear ETF (HDGE). "There were plenty of companies that went into this crisis on life support, kept alive by cheap debt. You're going to see a lot of these companies fail. But at the same time, a lot of high-quality blue chips are on sale right now at prices we may never see again in our lifetimes."Many companies will be gutted. It might take years for airlines to return to pre-crisis passenger numbers, and they might go through bankruptcy or a government conservatorship in the meantime. Likewise, retailers and restaurants might be dealing with the fallout from lockdowns for months or years, as will their banks and landlords.However, some of Wall Street's best stocks could come out of this with relatively minor scratches. Many have massive stores of cash that will help them weather short-term profit drops. Some might actually benefit from a coming recession by picking up market share when its competitors fold. Many of these beneficiaries are tech stocks, but certainly not all. Plenty are in the gritty, old-fashioned real economy.Today, we'll look at 20 of the best stocks to buy now as investors shift their focus to the recovery. These companies boast a blend of well-positioned businesses, strong balance sheets and/or leading positions within their industries. SEE ALSO: 25 Dividend Stocks the Analysts Love the Most
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It has been a difficult year for restaurant stocks to say the least. Thanks to the novel coronavirus, the sector has been absolutely walloped. Even with the market generally recovering strongly, most of the restaurant names remain down in the dumps. Dunkin' Brands (NASDAQ:DNKN) stock, however, is one exception.Source: JStone / Shutterstock.com Shares fell from $75 to $38 during the crash, but are back up to $65 now. And with good reason: Dunkin' should get back to its old highs as investors realize it is one of the best-positioned restaurants in this new economic environment. Why would that be? First, let me tell you a story.Because my youngest son was born in New York and spent the first eight years of his life there, he "grew up" with Dunkin' Donuts. Soon, he became one of the restaurant chain's biggest fans. Almost every weekend, we'd drive to the local Dunkin' shop to pick up a dozen doughnuts, along with a box of doughnut holes.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut then we moved to California and left the East Coast Dunkin' behind. My son never really got over it. Every time I traveled to the East Coast for business, he'd ask me to bring back a doughnut or two, if I could. And if I couldn't, he'd ask me to at least take a photo of a Dunkin' Donuts shop and send it to him. * 7 Dow Jones Stocks to Buy With Fortress-Like Balance Sheets That's a powerful example of "brand value," and that's one of the traits that will enable Dunkin' Brands to thrive in the post-Covid-19 world. And that tradition will continue well into the next generation and beyond. Plenty of Room for Brand GrowthWhile many East Coasters, like my son, are huge fans of Dunkin' Donuts, much of the country isn't so familiar with Dunkin' yet. The company launched its initial public offering in 2011 in part to raise funds and enhance its public stature as part of a big expansion push across the United States. That is well under way now, as the company has found new franchisees outside of its core East Coast market.There's also a large overseas opportunity for Dunkin' Donuts. International revenues account for just 17% of the company's total sales at this point. However, this could grow a ton. As of year-end 2019, Dunkin' Donuts had more than 13,000 locations. Nearly 10,000 of those are in the United States, and the other 3,500 are international. Three thousand five hundred is an impressive number and shows the potential for the company to become a coffee and fast-food leader around the world, following in the footsteps of McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX). Dunkin' Is a Natural Social-Distancing WinnerThe Canton, Massachusetts-based company's other main winning trait is a business model that relies heavily on "takeaway" purchases and mobile deliveries.Takeout orders represented 90% of the company's business even before the quarantines started. Unlike Starbucks, few people go to Dunkin' to hang out and enjoy the ambiance. Dunkin' has never marketed itself as a public space to linger with friends or get work done. So it loses little from switching to all takeout and delivery for the time being.On top of that, Dunkin' is actively finding new clients through delivery services. The company has added delivery alliances with GrubHub (NYSE:GRUB), UberEats (NYSE:UBER), DoorDash and Postmates. Put it all together, and the company has doubled its pre-coronavirus delivery capacity. The Verdict on DNKN StockDunkin' has a fantastic brand. And, unlike a McDonald's or Starbucks, it's not fully saturated yet. There are plenty of markets, both in the United States and overseas, for Dunkin' to tap in to.On top of that, Dunkin' has a unique advantage right now: Its brand is based around its products, but not its in-store experience. People like Dunkin's doughnuts and drinks (and the ice cream at Baskin-Robbins), not the look of its restaurants. Thus, Dunkin' can seamlessly switch to delivery and takeout only for some time, while many competitors lose much of their appeal without dine-in eating.So, I expect Dunkin' Brands to snap back quickly and thrive in the post-coronavirus world. Dunkin' was set to earn more than $3 per share before the virus hit. And the company has historically grown earnings at more than 10% a year thanks to its new-store growth and large share buyback.For a fast-growing franchisee restaurant chain, the market normally would pay at least 25x earnings, which would support a stock price up toward $80. As investors figure out that sales should be steady, and perhaps even increase as the new delivery options kick in, expect shares to continue moving higher.Eric Fry is an award-winning stock picker with numerous "10-bagger" calls -- in good markets AND bad. How? By finding potent global megatrends … before they take off. And when it comes to bear markets, you'll want to have his "blueprint" in hand before stocks go south. Eric does not own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Dunkin' Brands Has the Perfect Recipe to Overcome Coronavirus Challenges appeared first on InvestorPlace.