Posts Tagged ‘Starbucks’

Shares Of Starbucks Slide, After Company Warns That Commodity Inflation Will Whack Earnings

Courtesy of Joe Weisenthal, Business Insider 

Starbucks logo

Image: Starbucks.com

A strong quarter from Starbucks is marred by this jolt of reality

  • The company now expects EPS of $1.43 to $1.47, reflecting 15% to 20% growth over fiscal 2010 non-GAAP EPS on a 52-week basis. No restructuring charges are anticipated in fiscal 2011.
  • The company also expects EPS for fiscal Q2 and Q3 to be in the range of $0.32 to $0.33 in each period, and EPS in fiscal Q4 is expected to be approximately $0.35.
  • Commodity costs, which are now expected to have an unfavorable impact on EPS of approximately $0.20 for the full fiscal year attributable primarily to higher coffee costs, are reflected in the revised EPS target.

Current estimates had been at $1.49. The stock is off about 2% after hours.


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HOWARD SCHUULTZ EXPLAINS HOW QE IS HURTING STARBUCKS

HOWARD SCHUULTZ EXPLAINS HOW QE IS HURTING STARBUCKS

Courtesy of The Pragmatic Capitalist 

Great commentary right now on CNBC by Starbucks CEO Howard Schultz.  He succinctly summarizes what QE is doing.  Coffee prices have risen almost 50% since QE2 rumors first began in August.  Schultz says the price rise is hurting his business and that he will not be passing the costs along to the consumer.  He says the only people benefiting from this price rise are the commodity speculators because the consumer remains too weak to accept the price rise.

So what do we have?  It’s quite literally a ponzi scheme.  We have a Fed that has openly admitted that they want prices “higher than they otherwise should be”.  And speculators are taking them up on their offer by borrowing in dollars and buying any and all inflation hedges.  Meanwhile, the real economic benefit of this all is nil.  In fact, it is doing nothing but generating margin compression, excess volatility in financial markets and promoting the financialization of this country – the same thing that nearly destroyed it just two years ago.

Updated: 


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There’s No Deflation In Coffee

More bad news for coffee drinkers and people using the local starbucks as offices. Starbucks will be raising prices and now that intoxicated feeling is going to cost a lot more. – Ilene 

There’s No Deflation In Coffee

Courtesy of Jr. Deputy Accountant 

F**k. The one thing that I actually care about (I was tripping about something going wrong in coffee in February of 2009… seriously… you guys can f**k with bacon but please leave my coffee alone) is now getting messed with too. Bad move, Starbucks. My dirty Fed money and I are headed to the warehouse store for some Costco sh*t. Remember image doesn’t count in the "new normal", you can’t convince me that I’m any less cool if I’m shmobbing around with a mug of my own sh*t made at home.

USA Today:

Starbucks customers will soon get a jolt before any caffeine touches their lips. The world’s biggest cafe chain is raising prices.

Raw coffee prices have been rising. Starbucks (SBUX) said on Wednesday that it has absorbed the higher prices until now, but no more. It said the price increases will be focused on big and labor-intensive drinks. It didn’t say which drinks, or how much.

Most of its basic coffee and espresso drink prices will stay the same or even drop in some cases, including its $1.50 tall brewed coffee.

I hate to break this to Starbucks but now is not the time to start overcharging for their already overpriced coffee. A quadruple black eye costs me nearly $5 now but I’m addicted to the substance itself, not the particular "brand" of Starbucks. If anything I drink it to get some f**king air with my liquid crack before I go squirrel myself back into my office under the florescent lights. There’s a certain price point and frankly Starbucks reached it long ago.

My local work hood Starbucks is smart and offers me great discounts on drinks. They make it up by pawning off mediocre coffee on European tourists confused by our money that all looks the same. So it’s a win-win.

Meanwhile, Phil’s Stock World reminds us that caffeine intoxication is a legitimate mental disorder therefore I am never responsible for anything that I do from here on out. Starbucks is merely cutting themselves off from my cash flow, I’ll get my fix out of the coffeemaker for way less and stick my…
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It Would Sell Itself If They Had Just Called It “Nookie”

TLP: It Would Sell Itself If They Had Just Called It "Nookie"

Courtesy of Jr. Deputy Accountant 

electronic readers

The appeal of Amazon has always been that you don’t have to get off your ass to shop. Excellently lazy. Barnes & Noble, meanwhile, puts the lazy into its stores with big chairs and Starbucks cafes. Now that both booksellers have electronic readers – and what could be lazier than turning pages with your thumb? – the smackdown is on.

And B&N is making its play by both going old school and looking ahead.

NYT:

In September, the chain will begin an aggressive promotion of its Nook e-readers by building 1,000-square-foot boutiques in all of its stores, with sample Nooks, demonstration tables, video screens and employees who will give customers advice and operating instructions.

By devoting more floor space to promoting the Nook, Barnes & Noble is playing up what it calls a crucial advantage over Amazon in the e-reader war: its 720 bricks-and-mortar stores, where customers can test out the device before they commit to buying it.

“I think that’s everything,” William Lynch, chief executive of Barnes & Noble, said in an interview. “American consumers want to try and hold gadgets before they purchase them.”

Amazon’s Kindle e-reader is for sale on Amazon.com and in Target and HMSHost stores.

Barnes & Noble has already installed small counters in its stores where customers can test out the Nook. The new display space would be much larger, and it would be located next to each store’s cafe, to encourage customers to stop by the Nook space, coffee or tea in hand.

Points for placement, B&N. And points for foresight in making room for the expanded Nook boutiques by clearing out some of the CD bins. (Can you remember the last time you bought a CD?) Pretty soon, B&N will be thinking about moving all the music online.

Just like, uh, Amazon. 


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TLP: What It Really Means When You Spend $4 On A Latte

TLP: What It Really Means When You Spend $4 On A Latte

Courtesy of Jr. Deputy Accountant 

economic indicators

Unemployment numbers, capital investment figures and housing starts may mean something about where the economy is headed. But those are f^*king boring statistics. Instead, check the length of the line at Starbucks.

WSJ:

As economists look for clues on the direction of consumer spending, they may want to look into how much Americans are willing to spend on their coffee.

Consumers have been more willing to spend since the lows of the recession, but recent declines in retail sales and confidence have sparked worries over whether spending can continue to grow in the second half of the year.

Enter the coffee indicator. A “tell-tale sign of how consumers feel about employment, income and the future is where they buy their coffee and whether they step up for the more expensive concoction,” wrote Majestic Research economist Steve Blitz in a recent research note.

Majestic Research tracks anonymous credit-card data, and can see how much consumers spend by category and store. Blitz broke out the average dollar transactions at Starbucks and Dunkin’ Donuts. The data show that during the worst of the recession consumers spent less at the two coffee outlets, but as the employment picture started to improve people were willing to spend more per transaction.

Or maybe people are so depressed by the way things are in this economy that the last thing they want first thing in the morning is a sh*^ty cup of coffee. 

 


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Why Starbucks’ Pricing Challenges Are About to Get Worse

Why Starbucks’ Pricing Challenges Are About to Get Worse

Twilight actress Ashley Greene heads to a local Starbucks after spending the day with her acting coach, to review a script

Courtesy of Justin Rohrlich at Minyanville 

Perhaps taking a cue from the Dollar Menus at McDonald’s (MCD) and Burger King (BKC), the Super Value Menu at Wendy’s (WEN), and a Happy “Hour” at DineEquity Inc.’s (DIN) Applebee’s Neighborhood Grill & Bar that actually extends from 11:00 a.m. to 7:00 p.m., then kicks in again from 10:00 p.m. to closing time,Starbucks (SBUX) is making a rather obvious effort to lure back lost customers with a raft of new initiatives.

There’s the recently-introduced “Pike Place Brew” — a cup of regular coffee for $1.50. 

There’s the “guns allowed” policy, which means no sales lost to those packing heat. 

Today, customers were treated to a free pastry with the purchase of any “handcrafted or brewed beverage” at participating stores. 

 And now, in a thinly veiled admission that not everyone across the United States of America reads the New York Times, Starbucks will be offering USA Today to its customers after 10 years of the Times, the Times, and nothing but the Times.

FORBIDDEN CITY BEIJING CHINA

"Consumer news is part of the coffeehouse experience," said Chris Bruzzo, VP for brand content and online at Starbucks Coffee. "We’re delighted to be able to provide our customers with more selection in how they choose to source their news content and customize their Starbucks experience." 

It’s certainly nice of Starbucks to give patrons “more selection in how they choose to source their news content and customize their Starbucks experience,” and that customers won’t have to remove their weapons from their holsters while purchasing a now-reasonably-priced cup of coffee while thumbing through the Reader’s Digest of newspapers. But what effect will it have on the stock?

Analyst John Staszak of Argus Research tells Minyanville that he’s “confident Starbucks can boost traffic” as a result of its new initiatives. He has a Buy rating on Starbucks, as he sees same-store sales improving and costs remaining low.

Greg Schroeder, founder and managing director of Wisco Research, has a slightly different take.

“Starbucks is introducing a lot of new initiatives, and while each one, individually, probably is not a huge driver of traffic, they’ve each done a pretty good job of adding incremental sources of revenue,” he…
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Phil's Favorites

Wuhan coronavirus: we still haven't learned the lessons from SARS

 

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Wuhan coronavirus: we still haven't learned the lessons from SARS

Courtesy of Diana Bell, University of East Anglia

The SARS outbreak in 2002-2003 was the first global pandemic of the 21st century. There were 8,422 reported cases and 11% of those infected with the virus died. Its cause was a newly identified coronavirus (a type of virus that causes respiratory infections): SARS Co-V. Early cases were linked to wildlife markets and...



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Zero Hedge

First, They Think You're Crazy...

Courtesy of ZeroHedge View original post here.

Authored by Sven Henrich via NorthmanTrader.com,

80's Party

First they think you’re crazy and then they’ll join you.

On January 14th I outlined a rather obvious appearing correlation between the Fed’s repo operations and the market’s behavior: Every day, no ...



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Kimble Charting Solutions

Bad News For Crude Oil Should Come From This Pattern, Says Joe Friday

Courtesy of Chris Kimble

It’s a good idea for investors to be aware of key indicators and inter-market relationships.

Perhaps it’s watching the US Dollar as an indicator for precious metals or emerging markets. Or watching interest rates for the economy. Experience, history, and relationships matter. And it’s good to simply add these to our tool-kit.

Today, we look at another relationship that has signaled numerous stock market tops and bottoms over the years, and especially the past several months, Crude Oil.

When crude oil tops or bottoms, it seems that ...



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Insider Scoop

5 Software-Application Stocks Moving In Thursday's After-Market Session

Courtesy of Benzinga

Gainers

Atlassian Corporation, Inc. (NASDAQ:TEAM) stock surged 9.7% to $145.50 during Thursday's after-market session. According to the most recent rating by Morgan Stanley, on January 13, the current rating is at Overweight.

Diebold Nixdorf, Inc. (NYSE:DBD) shares increased by 8.1% to $11.48. The most recent rating by DA Davidson, on December 13, is at Buy, with a price target of $17.00.

Telaria, Inc. (NYSE:TLRA) stock rose 4...



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The Technical Traders

January 2018 Stock Market Repeat - Yikes!

Courtesy of Technical Traders

Our research team caught a very interesting price pattern that correlates with the Put/Call ratio.  We are alerting our friends and followers with this research post of this exciting, yet unconfirmed, set up today.

In late 2017, the US stock market rallied from July through December with moderately low volatility throughout this span of time.  Near the end of 2017, the US stock market price activity stalled, then began a renewed price rally in early 2018 (see the first BLUE & YELLOW BOX on the chart below). Then, in January 2018, a very broad market reversion event took place which ultimately resulted in a very broad market correction in October through December 2018 of just over 20%.

...

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Biotech

Snakes could be the original source of the new coronavirus outbreak in China

Reminder: We are available to chat with Members, comments are found below each post.

 

Snakes could be the original source of the new coronavirus outbreak in China

Chinese cobra (Naja atra) with hood spread. Briston/Wikimedia, CC BY-SA

Haitao Guo, University of Pittsburgh; Guangxiang “George” Luo, Univers...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Monday, 16 September 2019, 05:22:48 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: This chart says SP500 should go back to 2016 levels (overshoot will occur of course)



Date Found: Tuesday, 17 September 2019, 01:53:30 AM

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Comment: This would be HUGE...got gold!


...

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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

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How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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