Starbucks ( #SBUX ) Weekly Special Report based on 1 Lot Calculation:
GLOBAL COFFEE MARKET:
- Coffee is one of the world’s most popular beverages today. Hot and cold coffee beverages can be produced from a variety of beans and be served in many forms, such as espresso, cappuccino, americano, etc. Due to its caffeine content, many people drink coffee to give themselves an energy boost; however, it is also believed to offer health benefits, such as lowering the risk of liver cancer, protection against Parkinson’s disease, and an overall healthier heart.
- The Coffee Market size is estimated at USD 132.13 billion in 2024, and is expected to reach USD 166.39 billion by 2029, growing at a CAGR of 4.72% during the forecast period (2024-2029). (Source: Statista)
STARBUCKS (#SBUX)
- THE COMPANY: Established in 1971, Starbucks is a worldwide coffeehouse chain boasting over 36,000 locations across 83 countries. The brand offers an array of coffee beverages, teas, and snacks. With a strong presence in the U.S. and China, comprising 61% of its locations, Starbucks is celebrated for its commitment to a welcoming atmosphere in its stores.
- ONE OF THE MOST VALUABLE BRANDS IN THE WORLD: According to BrandDirectory, Starbucks ranks as the 15th most valuable brand globally in 2024 rising from the number 18 position last year.
- READY-TO-DRINK MARKET SHARE: 1. Starbucks (40.8%), 2. Stok (20.7%), 3. International Delight (17.6%), 4. Califia Farms (6.2%), 5. Coca Cola (4.6%) (Source: Statista)
NEWS AND EVENTS:
- EVENT (CONFIRMED: January 30th, 2024 AFTERMARKET - Q1 2024 EARNINGS): Starbucks is expected to have a 16.47% increase in earnings and 9.7% increase in revenue per annum, respectively. Starbucks has beaten 6 of their last 8 revenue estimates and 5 of the last 8 earnings estimates. (Source: Bloomberg)
- STARBUCKS ANNOUNCES INDIA EXPANSION: Starbucks recently announced its intention to open 1,000 stores in India by 2028. As Starbucks expands into India, it will also be busy growing its presence in the Chinese market, a tea-drinking nation with a newfound taste for coffee.
- STARBUCKS GROWTH IN CHINA: 65% growth in Starbucks store numbers since 2019, reaching 6,800-plus stores in 800 cities. 9000 stores by 2025. 21 million active loyalty members in China, up 22% year-on-year - mostly younger customers. 5% year-on-year increase in China same-store sales. 8% revenue increase. (Source: Starbucks)
STOCK PRICE ACTION AND FORECASTS:
- PRICE ACTION: Starbucks stock is currently trading at ~26% below its all-time high of $126.06 (July 26th 2021). The stock has an upside potential of ~35%. Although the price could go down. (Source: Bloomberg)
- ANALYST FORECASTS: Barclays: $123, Morgan Stanley: $120, Deutsche Bank: $118
STARBUCKS (#SBUX) January 23, 2024
Current Price:93.18
|
Starbucks |
Weekly |
|
Trend direction |
|
|
130.00 |
|
|
115.00 |
|
|
105.00 |
|
|
82.00 |
|
|
77.00 |
|
|
74.00 |
Example of calculation based on weekly trend direction for 1 Lot1
|
Starbucks |
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|
|
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|
Profit or loss in $ |
36,820.00 |
21,820.00 |
11,820.00 |
-11,180.00 |
-16,180.00 |
-19,180.00 |
|
Profit or loss in €² |
33,771.14 |
20,013.21 |
10,841.25 |
-10,254.25 |
-14,840.22 |
-17,591.81 |
|
Profit or loss in £² |
28,911.42 |
17,133.28 |
9,281.18 |
-8,778.65 |
-12,704.69 |
-15,060.32 |
|
Profit or loss in C$² |
49,571.69 |
29,376.81 |
15,913.56 |
-15,051.91 |
-21,783.54 |
-25,822.51 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 09:00 (GMT) 23/01/2024
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