From Nasdaq: 2025-02-06 22:50:44

Starbucks stock (NASDAQ: SBUX) has seen a 21% increase this year, reaching around $111 per share. Despite challenges in key metrics, CEO Brian Niccol’s leadership has shown promise with the ‘Back to Starbucks’ strategy. First-quarter earnings were positive, but issues like rising coffee prices and Chinese market difficulties may lead to short-term declines.

In the fiscal first quarter, Starbucks reported flat net sales of $9.4 billion. Net income dropped to $780.8 million, with same-store sales down 4%. Operating expenses increased, squeezing margins to 11.9%. Strategic adjustments are needed, especially internationally. To invest with less volatility, consider the Trefis High Quality portfolio.

Over the past four years, SBUX stock returns have varied, with Trefis’ HQ Portfolio outperforming the S&P 500. Forecasting a $37.9 billion revenue for 2025, with an estimated EPS of $3.05, Starbucks’ valuation is revised to $100 per share. This is based on a 32.9x P/E multiple, 8% lower than the current market price. Comparisons with peers and market portfolios provide valuable insights.



Read more at Nasdaq: Should You Pick Starbucks Stock At $111?