NEW YORK (TheStreet) --Starbucks (SBUX) reported better-than-expected earnings and revenue results for the 2016 fourth quarter after the market close on Thursday. The Seattle-based coffee giant posted earnings of 56 cents per share on revenue of $5.71 billion. Wall Street was looking for earnings of 55 cents per share and revenue of $5.69 billion.
However, despite the top and bottom line beat the company failed to top estimates for U.S. same-store-sales, and guided below fiscal 2017 earnings estimates.
"Look, Starbucks is a great, great company. I think the shares are still a little pricey even after languishing for the past year, but it should be on everybody's buy list," Lebenthal Asset Management CEO Jim Lebenthal said during Friday's "Fast Money Halftime Report" on CNBC.
However, he cautioned investors to wait until the stock becomes cheaper before buying shares.
"It's possibly a value trap. I don't think you'd lose money in it, but there's nothing to take it higher in the short-term," he added.
TIAA Global Asset Management managing director Stephanie Link is put off by the price of the stock as well.
"It's expensive for a decelerating growth story," she noted.
Shares of Starbucks were higher in mid-afternoon trading on Friday.
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Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Starbucks' strengths such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and good cash flow from operations outweigh the fact that the company has had lackluster performance in the stock itself.