Starbucks has worked to trim costs by closing underperforming stores and limiting the number of new store openings, and it is making an aggressive push into China.
Shares of Starbucks hit a 52-week high on Thursday of $60.44. The stock's 52-week low of $33.72 was set on Aug. 9.
"As it relates to the single-serve arena, the company is unique vs. peers in that it now owns both the content and distribution and we believe SBUX shares will benefit as the company transitions from the 'stealth' way to a clear and obvious way for investors to play the premium single-serve opportunity," Piper Jaffray analysts wrote in an April 3 report. "Looking out to FY16, we would note that our estimates reflect the company's CPG segment contributing approximately 30% of the Starbucks' consolidated [earnings before interest and taxes]."Starbucks has an estimated price-to-earnings ratio for next year of 26.02 times; the average for restaurants and bars is 19.94. For comparison, Dunkin' Brands Group (DNKN) has a lower forward P/E of 22.03. Twenty-three of the 31 analysts who cover Starbucks rated it buy. Seven analysts gave the stock a hold rating and one rated it sell. TheStreet Ratings gives Starbucks an A+ grade with a buy rating and $76.36 price target. The stock has risen 31.05% year to date. -- Written by Alexandra Zendrian
>To contact the writer of this article, click here: Alexandra Zendrian >To submit a news tip, send an email to: firstname.lastname@example.org. >To follow the writer on Twitter, go to Alexandra Zendrian.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV