Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, August 16, 2024

Article Excerpt

STARBUCKS CORP., $94.81, Nasdaq symbol SBUX, remains a buy for aggressive investors. The company is a leading seller and roaster of specialty coffee. It has 39,477 outlets in 86 countries. Licensees operate about half of those stores. The stock shot up 23% this week after the company replaced Laxman Narasimhan as its chief executive officer with Brian Niccol, the former CEO of Chipotle Mexican Grill Inc. (New York symbol CMG). Note—Chipotle is a recommendation of Power Growth Investor, our newsletter that focuses on aggressive stocks. It’s unclear what new strategies the new CEO will bring in to fuel Starbucks’ sales. However, his experience helping Chipotle recover from food safety problems in 2015 and the COVID-19 pandemic, including faster service, should help Starbucks attract more customers. The company’s recent problems have also attracted two activist investors—Elliott Management and Starboard Value. Their involvement should also push management to improve sales and earnings. For the current fiscal year, ending September 30, 2024, Starbucks will probably earn $3.56 a..