Turnaround plan will push this stock higher

Article Excerpt

Starbucks’ shares have gained 45% since it named Brian Niccol as its new CEO in August 2024. Investors expect his experience turning around Chipotle Mexican Grill after a food safety crisis will help the company attract more customers and spur its earnings. In fact, it now looks like his new growth plan is starting to pay off. STARBUCKS CORP. $109 is a buy for aggressive investors. The company (Nasdaq symbol SBUX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 1.1 billion; Market cap: $119.9 billion; Price-to-sales ratio: 3.2; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.starbucks.com) is a leading seller and roaster of specialty coffee. It has 40,576 outlets (53% company-operated and 47% licensed) in more than 85 countries. North America accounts for roughly 70% of Starbucks’ sales. International outlets supply a further 20%, while the remaining 10% comes from selling coffee and other beverages through supermarkets. As the COVID-19 shutdowns eased, Starbucks’ overall sales rose 53.8%, from $23.52 billion in 2020 to $36.18 billion in 2024…