Market Overview

Brian Sozzi: Starbucks' Slowing Lines Lead To Disappointment

Share:
Related SBUX
Kate Spade, Starbucks, Gold And Tech: Fast Money Picks For April 28
Jim Cramer Recommends Buying This $5 Stock, A Hot Retailer And More
Starbucks opens store in Ferguson, Missouri (Seeking Alpha)

In a report published Thursday, Belus Capital Advisors CEO and Chief Equities Strategist Brian Sozzi commented on Starbucks Corporation (NASDAQ: SBUX) earnings results.

On January 14, Belus downgraded shares of Starbucks from Buy to Hold. Belus' CEO Brian Sozzi 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.”

Sozzi added that Starbucks long lines may reduce customer's inclination to purchase drinks that take longer to make and items that need to be heated. Sozzi remarked that this may influence transaction value in the United States and globally. Sozzi 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.

Latest Ratings for SBUX

DateFirmActionFromTo
Apr 2016Goldman SachsMaintainsBuy
Apr 2016Stephens & Co.MaintainsEqual-weight
Apr 2016Deutsche BankDowngradesBuyHold

View More Analyst Ratings for SBUX
View the Latest Analyst Ratings

Posted-In: Belus Capital Advisors Brian SozziAnalyst Color Earnings News Analyst Ratings

 

Related Articles (SBUX)

View Comments and Join the Discussion!