Starbucks Corp SBUX shares are trading lower Wednesday on the heels of the company's fiscal second-quarter results. The company beat expectations, but maintained a cautious outlook. Several analysts are out with updates following the print.
- Q2 Revenue: $8.72 billion beat estimates of $8.4 billion
- Q2 EPS: 74 cents beat estimates of 65 cents
Starbucks said global comparable store sales increased by 11%, driven by a 6% increase in transactions and a 4% increase in average ticket. Operating margin was 15.2%, up from 12.4% year-over-year.
The company opened 464 new stores in the quarter bringing total locations to 36,634 globally.
"This momentum was made possible by the investments we are making in our stores and partners, and allowed us to continue unlocking capital to further reinvest in our business," said Rachel Ruggeri, CFO of Starbucks.
On a conference call following the print, Ruggeri reaffirmed the company's full-year 2023 guidance and noted that sales growth in China is expected to moderate in the second half of the year, per Reuters.
"We've already seen it start to moderate," she said, adding Starbucks is "still navigating a rather uncertain environment globally."
Analyst Assessment:
- Wedbush analyst Nick Setyan reiterated Starbucks with a Neutral and maintained a $110 price target.
- Stephens & Co. analyst Joshua Long reiterated Starbucks with an Equal-Weight and maintained a $103 price target.
- JPMorgan analyst John Ivankoe maintained Starbucks with an Overweight and lowered the price target from $114 to $113.
- Barclays analyst Jeffrey Bernstein maintained Starbucks with an Overweight and raised the price target from $123 to $127.
- Credit Suisse analyst Lauren Silberman maintained Starbucks with an Outperform and raised the price target from $122 to $128.
- Wells Fargo analyst Zachary Fadem maintained Starbucks with an Overweight and raised the price target from $120 to $125.
SBUX Price Action: Starbucks has a 52-week high of $115.48 and a 52-week low of $68.39.
The stock was down 5.03% at $108.70 at time of publication, according to Benzinga Pro.
Photo: Engin Akyurt from Pixabay.
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