27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
While Starbucks Corporation (NASDAQ: SBUX) reported disappointing comps, a reacceleration can be expected going ahead, BTIG’s Peter Saleh said in a report. He maintained a Buy rating on the company, while reducing the price target from $75 to $64.
Starbucks reported its 3QF16 adjusted EPS at $0.49, marginally ahead of the BTIG estimate of $0.48.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Comps Disappoint
The company’s global comps grew 4 percent, significantly below the BTIG estimate of 5.2 percent and the consensus expectation of 5.7 percent. The shortfall was on account of softer results across all regions. Management indicates that the weaker results were on account of political and economic uncertainty as well as marketing execution.
Americas same-store sales came in at 4 percent. This was “driven entirely by check growth with transactions flat as the transition of My Starbucks Rewards early in the quarter competed with the spring Frappuccino promotion,” analyst Peter Saleh noted.
Comps To Reaccelerate
Saleh expressed confidence in Starbucks being able to “reignite growth with the help of menu innovation and digital enhancements.” He projected an improvement in Americas comps in 4QF16 to 5.0 percent.
While some investor may be discontent with the given recent results, following very impressive comp trends, the setback is likely to be “temporary and not reflective of any brand or long-term issues,” the analyst commented.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.