Starbucks' Investor Day Proves Company Remains A Global Growth Story

How is it possible that it seems like there is a Starbucks Corporation SBUX coffee shop on every corner and in every mall, yet the chain is still considered a global growth story?

According to Jeffrey Bernstein, a restaurant analyst with Barclays, Starbucks' 2016 Investor Day presentation confirms that Starbucks is indeed a leading global growth story. After all, the company's five-year plan calls for up to 20 percent in earnings per share growth and a 4–6 percent comp growth.

Bernstein stated that Starbucks can achieve its long-term goals through continued innovation and the newly created Starbucks Reserve concept as well as digital and mobile initiatives.

Moreover, Starbucks has significant runway for international growth in China, and the company also hopes to develop its channel development business to rival the scale of the global retail platform.

Not So Fast ...

Despite Bernstein's optimism of growth, the analyst cautioned investors that Starbucks' five-year growth profile is already priced into the stock, which is trading at around 27.5x forward earnings — in the lower half of its three-year range of 24x to 36x and in line with its 28x average.

The analyst also suggested that management should have offered a more tempered and conservative long-term comp profile and then "beating the prudently conservative level," which would have been "favorably received."

Shares remain Equal-Weight rated with an unchanged $57 price target.

At last check, Starbucks shares were up 0.23 percent at $58.90.