UPDATE: Cleveland Research Increases Starbucks FY14 Estimate as La Boulange Invites Traffic

In a report published Thursday, Cleveland Research analyst Jason Whitmer reported that Starbucks Corp. SBUX has a FY14 estimated of $2.72 versus consensus of $2.66 with upside potential to $3. Cleveland Research noted that Americas comps are likely in line with consensus expectations. Whitmer reported, “We believe growing food sales, incremental in-store/digital promotions, and growing afternoon day parts have been the primary sales drivers during the quarter. Our research has been more mixed on September to finish the quarter as we believe core beverage may have moderated (likely lapping a tougher comp from last year's promotions) offset by strong performance on food items (particularly sandwiches and salads).” La Boulange has also outperformed expectations with a growing afternoon demand. Cleveland Research modeled a 12-15% revenue growth and EPS growth of 23% over the following two years. From international expansion, American sales and margin expansion, and development growth, Whitmer noted probable long-term gains. SBUX closed at $76.34 on Wednesday.