The specialty coffee retailer reported its 2015 fourth quarter earnings results yesterday, which were in-line with analysts' expectations.
Starbucks reported fourth quarter earnings of 43 cents per share on revenue of $4.91 billion. Analysts had estimated for earnings of 43 cents per share on $4.9 billion in revenue.
On CNBC this morning, Starbucks Chairman and CEO Howard Schultz said that the company is advantaged by its innovations.
"We are, as I said in the call, playing the long game, investing ahead of the curve, but at the same time putting up the kind of comp store sales numbers all over the world, with 4% traffic," Schultz said. "We do not have a company [competitor] our scale, even coming close."
Starbucks also reported same-store-sales growth of 8% in the Americas versus consensus estimates of 7%, which is "a tremendous result considering a choppy spending environment," Credit Suisse said.
"While SBUX continues to outdistance itself from the restaurant peer group, this fundamental superiority has been largely captured in the stock," the firm said. "We have a difficult time setting a PT materially above the current valuation, as SBUX is likely to manage EPS growth toward the 15- 20% LT target and as the current run-rate on (same-store-sales) is unsustainable longer-term."
Credit Suisse raised its fiscal year 2016 earnings projection to $1.89 from $1.85 per share.
Shares of Starbucks stock were up 0.05% to $62.53 in late morning trading on Friday.
Separately, TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate STARBUCKS CORP (SBUX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: SBUX