Starbucks Stock is Crashing - Here's Everything You Need to Know
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- Опубликовано: 9 июн 2024
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Starbucks Stock is Crashing - Here's Everything You Need to Know
#sbux
00:00 - Introduction
00:31 - Previous Guidance
01:00 - Earnings Highlights
04:46 - Global Store Growth
05:31 - Cash Flow Highlights
07:30 - New 2024 Outlook
09:44 - Competitor Growth
11:09 - Transcript Highlights
13:38 - Starbucks Price Today
16:00 - Final Thoughts
Hello everyone, I am Daniel Pronk and in today's video we discuss Starbucks recent earnings and if the stock is looking cheap today.
Disclaimer: Before we dive into this discussion, I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. All trading and investing activities must comply with the regulations set forth by the Securities and Exchange Commission (SEC). I will never ask you to send me money to trade for you, and if you come across any suspicious emails or fake social media profiles claiming to be me, please report them immediately. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose. While my videos may contain affiliate links or sponsorship to products I believe will add value to your life, it's crucial to conduct your own research before making any financial decisions. 
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Join my Patreon to get access to my buys and sells, portfolio, and more videos!
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Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
ANGELA LYNN SCHILLING' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement of about $150k. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Laila artine kassardjian' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Their CEO isn't too smart. Someone is getting fired.
I saw his interview with Jim Cramer yesterday. It was embarrassing. Had no direction.
Just like PTON, I can see SBUX price jump up when this CEO is replaced. The CEO just wanted to BS through Cramer with absolutely zero value added to Cramer's good questions.
He envoked trust in me. Maybe u t just a judgmental unhumble human
I've been holding cash since 2020 pandemic crash, just went 'all in' and bought about $250k worth of ETFs & individual stocks at discount, hoping to average down on ailing companies, in order to achieve my retirement goal of $1m, tho not sure of the economy right now.
the markt to me is like a lucrative chess game, tho it's incredibly difficult to outperform, it's all about understanding how the world moves, its history and psychology
That's quite well put. I think you need to be a student of both the past and the future😂😂
The issue is that most people have the “I want to do it myself mentality” without being qualified enough, hence get burnt during crash, no offense. Generally speaking, advisors are ideal reps for investing jobs, and at first-hand encounter, I've attained nearly 7-figure after routine diversification and subsequent investments, since the rona-outbreak in Jan.2020 to date.
Simply to due diligence, the advisor guiding me is 'Katherine Nance Dietz', she's well qualified and established.
I've shuffled through a few advisors in the past, but settled with 'Katherine Nance Dietz' her service is exemplary. I'd suggest you research her further on your browser, sure you'll find her basic info.
CEO is clowning.
I’m glad I found your channel. Super informative!
Thanks for the outlook!
Well my $82 limit order got filled….
I’m going to watch it and DCA, once consumer spending increases and rates cut eventually it’ll bounce back. The business is massive and they’ve got enough funding to expand the business and increase revenue.
China, Arab and African market will be hit hard
Good risk reward
Enough funding? How? They have to repay a lot of debt this year, plan 3B in capex and most od the rest is committed to the dividend... Taking on more debt at these rates? Not sure...
All my colleagues stopped going to Starbucks their coffee prices have doubled .
Always love your analysis…
Deep analysis…
Thank you Mr. Earnings. Good video 💪
Thanks for the video
People are not going to get a coffee from Starbucks anymore. All my friends and family members are now going to local coffe shops, including myself. I used to go Starbucks almost every week. Is stopped during covid
not rly, ppl still line up at sbux here.
Not really tbh, Starbucks is still well known around the world & will still expand its revenue just like MDC... it's a leading company in its sector
They are at airports and places where there isn’t other coffee shops .They’ll bounce back
Agreed, their coffee tastes burnt.
Your family experience means absolutely nothing.
Another great video. I'm friends with a few people who work at Starbucks and it's a disaster. Workers are very over worked and stressed. Customer count is down and thus employees assigned per shift is down which hurts customer service and employee morale.
Plus they're way overpriced. I could get a breakfast sandwich and coffee at Tim's for under 10 dollars. And it's pretty good. No chance of that happening at Starbucks.
If I don't love the product, there's NO way I'm buying the stock.
I think they are ridiculously priced, but I know a few teenagers that won't go elsewhere and happily pay the high cost.
It seems to show brand is still somehow maintaining it's cool factor, especially with young women.
Just a question, where do you find balance sheets infos like you show in your video ? Which website / platform?
As a consumer I find Starbucks expensive. Lots of alternatives here in downtown Toronto so I also question the moat.
I agree. $7 for a coffee is just too much.
But in China it seems shops are still full. And coffee around 5$
Nobody buys a Gucci bag and say it's expensive. Nobody deliberately buy Mercedez Benz and say it's expensive.
I very rarely go to Starbucks. Social media and financial gurus have been bashing Starbucks for decades and now it’s just ingrained me that it’s overpriced, however, on the rare occasion I’m at Starbucks I am surprised that their regular coffee is the same price as a Dunkin donuts. And so are their ice coffees. It’s only expensive if you get their fancy sugary drinks.
Few companies have a moat like Starbucks. I am buying
What is the moat of Starbucks
@@kyoli9847 The brand. Consistent product. When I go anywhere in the country I know I can get a decent coffee if I find a Starbucks. They are the coke of coffee
@@kyoli9847nobody else makes coffee
@@kyoli9847 a trench around the coffee shop that is filled with steaming hot coffee.
@@HepCatJackthis dude gets it
Daniel is a perfect example of the 99% of investors who say they worship Buffett and his strategy but are incapable of actually implementing it. Just riding every quarterly up and down with no long term view.
One quarter of guidance completely changes his view-classic.
I think the new CEO is probably going to be replaced. But if you can’t ride out the difficult times when a world class brand is going through tough times, you’re literally not able to do what Buffett and co. do.
He’s actually done this time and time again. Just recently with Meta he sold wayyy early because the “valuation” was high. Just totally against the Buffett mentality.
The one thing to add is the buyback yield. Historically they've done about another 3% of buybacks on the current valuation. In the recent quarter they've had to pay for it with the balance sheet (as opposed to net earnings) but, within reason, you could see that as a fairly likely +3% on top their dividend yield, i.e. 6%+ real yield direct to the investor currently. If they implode, this will not matter, but if they stabilise at all, even without same-store growth - 6% yield plus inflation plus store growth - it's 10%+ with an (uncertain) upside of a recovery in the operating margin.
Another great video, thanks! I think the market is over-heated. And I am concerned that people are focusing less on fundamentals and just chanting the mantra of dollar cost averaging and driving the market higher without considering fundamentals. It is a catch-22 for me. I mean I like stock prices going higher but I also hate buying over-priced stocks and ETFs. Personally, I have stopped buying growth ETFs- they are ridiculously over-valued. Dividend stocks and ETFs are a little better but they are still over-valued. There is some hope with small and mid caps. I am not sure they are undervalued but at least they are less over-valued..This pattern offers a valuable insight for strategic planning. Despite these trends, i have delve deeply into active trading and managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Tobias Hawke, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
He mostly interacts on Telegrams, using the user-name.
@TobiasHawke .
Exploring new investment opportunities demonstrates your proactive stance towards financial growth during these volatile times. Diversifying your portfolio can play a crucial role in effectiveIy mitigating risks..
Over the years, I've been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Tobias insights. It's akin to finding a diamond in a coal mine.
The market is not necessarily a rollercoaster if you know your way around it, but If you are not too savvy with the market, just buy and hold on strong companies with good earnings, or consult with advisors on ETFs and actively managed funds. Took my own advice and as of today, my cash reserve has yielded from $350k to nearly $1m in months.
Hey @daniel,
can you make video for ADSK & ADBE
appreciate your guidance.
Didn't you say in 5 Undervalued Stocks I am Buying in April 2024 that you were buying SBUX? Did you sell? or just holding and not buying more?
i remember getting a frappe at Starbuck not to long ago this year and the price was Around $5 plus cents by surprise i went to Starbucks the other week same size frappe is now over $6....
will the share price go lower on ex-date?
I am not sure how the situation is in US but Starbucks is being highly boycotted in Europe and Asia...
Would you mind elaborating on why people are boycotting it in Europe and Asia? I have not heard anything about this
A coffee is still a coffee. Regardless how strong a brandname is, when a coffee starts costing USD 7,- or more there is no moat. It will not take long and you will be offered excellent coffee elsewhere......at very different prices.
In Germany a doppio espresso is 3,40€ at starbucks. If u go to a local coffee store or a little kiosk that sells coffee as a side husle, u py up to 5€. So starbucks is basically cheaper if u dont order ten different syrups on top
Being so optimistic between 2 quarters only to severely drop guidance in the latter tells me there is an ego problem in the Starbucks C-Suite.
Shareholders deserve transparent leadership, and if I was on the board I would be getting my files ready to lodge a change at the top.
Excellent presentation! / Their fancy drinks are too expensive for an average worker, and their snacks are out of this world 😮
overall, agree to your opinion. but when you make the comparison, please consider the geography. the company you mention basically have no meaning present in both US and China, two major market of sbux. I think the major problem of Sbux is their problem in China. They considering China as their growth engine, but personally, I do not really agree. The competition in China is rediculous high, not only from luckin, but also other bubble tea. Further, the shrinking size of the Chinese middle and high-income class is the biggest problem.
Completely agree with you. 把我想说的说了
agreed not easy to charge smart Chinese for expensive coffee, you can do that to Americans not Asian believe me bc i am one😅
@@theresamorgavi9196 by your own logic, that’s because Asians are poor. Not because they’re smart. If they were smart they wouldn’t be poor.
Then again your logic is absolute garbage so there’s also that.
Not to mention ridiculously high prices and general consumer strains
Daniel, you r much smarter than me, because you patiently sat through the ER, whereas I sold a put position for penny before ER and now have to own 100 shares @$80. With such disastrous earnings result, I can’t say I’m confident the stock will recover anytime soon. Great analysis Daniel.
A lot of people can't paid $10.00 for a coffee
I bought SBUX stock just before earnings call ... A mistake that I'll not do again. But, I'm not sad because I follow my strategy, I still have 3 investments ready to add to SBUX stocks so I'll stand and see how SBUX stocks is going to evolve now.
Thanks a lot for your video sir !
Starbucks has a lot of growth to go in India.
No India love their local coffee. Which they can get for less than a $1
selling coffe for 50 rupees????
No offend but Indians are cheap and smart, they ain’t buy starbucks 😅
@@javaChai50 cents
people who can afford are few...majority people live in slums... most struggle to afford a good KFC or MC
Good analysis, thx!
Here’s the thing. There’s still a lot of companies that have a hybrid WFH work schedule. Typically WFH Monday & Friday. That affects Starbucks - people use their own cheaper coffee when they work from home. I don’t see hybrid WFH ever going away, and that’s going to hurt Starbucks.
I agree with the management bit. But not a single earnings call i ever have attended are has been like that. They always a sales purson. And trying to focus your attention away from the bad stuff.
I think it's possible that Starbucks is seeing weakness because it is a more expensive product set in a more challenging environment for patrons. There may be a swing taking place towards cheaper products because people are hurting right now, which might be why Tim Hortons is swinging upwards. I guess we can't be sure, but it would be interesting to watch and see if Tim H starts declining in growth and Starbucks takes on those customers again when folks eventually start feeling flush with cash. Appreciate the video!!!
Here is an example of the benefits of long term investing. I have been reviewing my IRS schedule D from 1999.I bought 400 shares of SBUX for about $9000. I sold a few weeks later for a small profit. Had I held the 400 shares and factored in the stock splits I now would hold 6400 shares. At $75 per share my original SBUX would now be valued at approximately $480,000. This does not factor dividends into the equation only market value. This is at a time when SBUX is running over a few speed bumps. So, a long term holder/believer ought to be adding to the SBUX position at this challenging time.
The thing is we cannot trust them they are not being honest with shareholders. Honestly it should be down more.
What retails does not understand is that Starbucks has stores in good location where people have big pockets or in general like to spend, It needs time but they ll bounce back.
And a drop is totally normal since with high rates is difficult to expand and pass the higher prices quickly so this is an adjustment year.
On top of that Starbucks earns passively % with their fidelity program and credit left asleep on those cards.
In China, coffee market are actually in a price competition. The domestic brand sell their coffee around 2 dollars and it's quite tasty...while Starbucks sell their coffee 5-7 dollars with boring flavor. Also, ppl don't have much money to buy expensive coffee just for brand.
Did they even root cause the problem? same-store sales drop - is ugly but is regionalized, if so, why?
Most of you guys are guys. Starbucks is a luxury coffee brand. Every girl on Insta and Snap has her requisite coffee for every video/photoshoot/etc. I wouldn’t walk away from this brand after one tough year in China. Also - have you tried the pumpkin spice at Tim’s? Tastes like copper. Yuck.
Honestly, this concerns me and has left me uneasy. Especially the potential recession. I'm unsure about my $800k account strategy, considering the uncertainty of a recession mostly.
you need a certified financial planner straight up! personally, I would invest in ETF's and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022
I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you
‘Marisol Cordova’’ is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals and scheduled a call..
Im just not willing to buy 10 dollar grande caffe latte with no add-ons...
Their product is expensive, and their CEO doesn't inspire confidence... Especially with such a miss between company's expectations and actual results.
If it drops another 10+%, it might be worth a look.
you need to watch Cramer interview their CEO. Funny! Jim almost called him a liar! 🙂
Only 10 bucks for cup of coffee, so cheap
Does it make sense to buy a starbucks share now as a beginner to get some experience?
Yes if you aim to diversify and believe this year rates cut are still on Fed menu.
This low price is a historically good entry point as shown very well in the video.
Thank u sir (or madam)
You buy a cup of ice coffee at Starbucks for $8, it’s 66% ice and 34% of water down coffee. Everything at Starbucks is double the price compared to other places. Corporations nowadays are just raising prices on people to maximize profits and think people will keep on buying their stuff without any thoughts. Hanging out at a Starbucks or buying overpriced items at Starbucks are not status symbols, it just shows that the buyers are idiots. Starbucks is losing money worldwide due to inflation and people are spending their money more carefully now. China unemployment are at record breaking high, so forget about Starbucks making money there.
Debt to equity is too much plus the declining revenue from the previous years.
I'm NOT going to pay €5 for a freaking cup of cappuccino. NOWAY!
I live in China. there is Luckin coffee _ Cotti coffee...they are smashing it and also sell very cheap compared to Starbucks. If you taste their coffee its not bad, so many people buy. starbucks its used a lot as a cool place to hang out or have meetings but people cant afford 5$ coffee in CN when Luckin sells some coffee with 1$. No wonder they are losing market here
$30 I will be buying
$25 max after div cut 😂
High interest rates to combat inflation? As more people service renewed mortgages at rates that cause their payments to increase hundreds of dollars per week, and rent also increase, the first thing you do is stop spending on nice to have item. Groceries first, servicing debt second, Starbucks last.
Starbuck needs happy hour at least for certain days
I would prefer if they suspended the dividend and instead pay down their high interest rate debt and also buy back as much of their shares at these prices.
Alot of dividend growth investors have SBUX for the growing dividend. If they decrease or cut it, there will be another massive sell.
Do SOFI, as the price looks fantastic and they killed the numbers in earnings release. Seems like people are worried that they only have PRIME loans with high FICO scores with 26% increase in revenue. What is the reason for the drop?
What the heck is a Tim Hortons?? Never heard of it. I dunno why but it reminds me of an Elephant??
Cafe Amazon are all across Asia, at half the price of Starbucks. Starbucks has competition for sure. Maybe they can start selling Burgers?
They have the most expensive coffee anywhere.
people can't afford a cup of coffee for 8 bucks every day. Times are tough
Hahahahaha one blip in earnings and the story changes. RUclips never fails
No bubble tea a trendy company on its way out
its been crashing for over five years now. I don't understand the title of this video.
Starbucks is almost a half Chinese company now. I won’t buy it due to China risk. Thanks for your analysis anyway 🙏😊
Many investors are selling sbux because of their support for Isreel. It's more about ethical and moral reasons why sbux is losing customers. Boycotting companies with ties to an apartheid regime does work, along with stiffer competition, and over priced coffee, as seen by their recent numbers.
Many consumers around the world are boycotting Starbucks because of their link to Israel and support of apartheid and genocide in Gaza. I am glad to see BDS working
Starbucks is moat. It will come back strong( pin this comment). We should buy stock when sentiment is negative. There is a lot of room left to grow in Asia. Indian people love starbucks and brand. In fact Starbucks CEO is Indian American.
Starbucks employees having a full blown meltdown for not giving a 200% tip is finally impacting sales - There are 240 stores in Manhattan which is insane 😅
Starbucks is way to expensive here in Rip off Britain, people are going else where like McDonalds or Costa
not impressed w the CEO
You really can’t compare Starbucks in Canada with Tim Hortons dominates close to Starbucks in America where it’s the premier coffee and most people don’t consider Tim Hortons even though I liked Tim Hortons personally
I'll grab a Timmy coffee for $2 than a Starbucks one for $6 any time not a hard choice 😂
This is the way 🤣
@@danielpronkMcDonald's is the way.. Especially when then have the $1 offer going on..
I lived in Canada, every morning , I saw 50+ people in drive thru line up in Tim Horton coffee, i saw non drive thru at Star buck. then you know how bad the business starbucks has.
Everyone I know is boycotting this crap lmao
keep boycotting!
MCD coffee 1dollar😂
Tim Hortons has the worst chain coffee. It is the only coffee that tastes like burnt carrots for the first half of the cup.
*People don't understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments don't match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that*
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I've been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Erlichman demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I believe McD's is actually better coffee than TH's and is a greater competitor to SBUX worldwide.
I agree 🇬🇧👍🏻
Starbucks is going to have to change their menu items. they need to bring back their holiday panini during the holidays and they need to bring more tea varieties ti their menus as well, along with more coffee items on their menu. i just say this as a california resident that has seen some crappy changes made to the menu over the past 5 years.
As a coffee drinker Starbucks is just better. They are built on high quality coffee. They have struggled in the past when they lost focus on this, and with massive expansion in China it might be hard to keep on top of quality control. But if recession is happening it might be something people spend less on
Lord have mercy you goofy investors, look at Starbucks historical data. Starbucks will continue to be a growth monster. Literally walk into any Starbucks and if you aren’t shocked how busy it is than be my guest and miss out on a great buying opportunity like all other dumb dumb investors.
where is the money goes? investors money is gone...
Somebody just discovered big money in stock market.
A legend grapples with the sudden free fall of SBUX!!
Cylons don't like the name.
What do you hear Starbuck?
Starbucks tanked because Blank Street is taking over.😊
I've never understand why people are visiting Starbucks. They make the worst coffee in the world.
#boycottstarbucks #BOYCOTTstarbucksFOREVER
its very simple, boycott destroyed the stock!
This is actually my fault. I bought Starbucks stocks last week for the first time
You took one for the team. God bless you
Starbucks is too expensive. Ppl will go elsewhere.
Bibi embarrassing the whole Western world since forever, that’s the reason …
I’ve seen other investor RUclipsrs analysing bucks and absolutely no one had anything to say about the horrific policy Bibi is doing, affecting everything that touches it
It’s one thing to defend, another to blindly anihilate anyone, regardless of their degree of involvement
Truly disappointing on both sides
Starbucks is just not 'hip' anymore. All in all it's just a overpriced coffee shop.
Biden said Americans have plenty of money and Yellen said inflation is transitory. Ssssoooooo cringe!
Overly priced bad coffee. Cost 50 cents to make. My Nestle instant coffee tastes better than Starbucks
Based on the chart, the stock is cheap.
Recession is here