Starbucks' Slowing Lines Leads to Dissapointment, Belus Capital Advisors Comments on Earnings Results

In a report published Thursday, Belus Capital Advisors CEO and Chief Equities Strategist Brian Sozzi commented on

earnings results. On January 14th, Sozzi downgraded shares of Starbucks from Buy to Hold. Belus' CEO noted that the results confirm his initial motives on downgrading the results. Sozzi commented, “One must show respect to comments by a founder not just collecting checks, rather he is very much still in the trenches daily. So when he notes fundamental shifts in how good are consumed that has to be appreciated, and it wasn't reflected in the stock's valuation. Looking through the report, that “seismic” shift (which amounts to another attempt to reset Street expectations) noted by the company this evening appears in another quarter of slowing Americas transactions sequentially.” Belus Capital Markets added that Satrbuck's long lined may reduce customer's inclination to purchase drinks that take longer to make and items that need to be heated. Sozzie remarked that this may influence transaction value in the United States and globally. Belus' CEO further wrote that U.S. demand trends would have to become more transparent before considering an upgrade to Buy. Shares of Starbucks closed at $73.39 on Thursday.