Sozzi: Starbucks Faces Challenges In 2015 Despite Recent Positive Developments
"Consider these issues to be partly a by product of Starbucks' own success," Sozzi wrote. "To keep its sales and earnings percolating for hungry investors, Starbucks has introduced a host of new drinks such as shaken iced teas from Teavana and food items such as paninis to its menu."
Shares recently traded at $81.92, up 0.8 percent.
Sozzi also wrote that these new product offerings "have ratcheted up preparation complexity" for baristas, creating a new set of challenges the company prepares to tackle in 2015. Otherwise, Sozzi speculates that declining food and drinks sales will be dealt with "harshly" by investors who continue expecting Starbucks to maintain "robust" growth.
Sozzi has earned a reputation as being an analyst utilizing a "boots on the ground" analysis and presented two Vines demonstrating the reality of Starbucks' issues.
Latest Ratings for SBUX
|Feb 2017||Argus Research||Downgrades||Buy||Hold|
|Oct 2016||RBC Capital||Maintains||Outperform|
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