Back to top

Analyst Blog

Shares of the coffee giant, Starbucks Corporation (SBUX - Analyst Report), reached a new 52-week high of $75.50 on Sep 11. Its share price has been on an upward swing after the announcement of solid fiscal-third quarter 2013 results on Jul 25.

Growth Drivers

Estimates have been rising higher for this company after it delivered solid third-quarter fiscal 2013 results, beating the Zacks Consensus Estimate for both revenues and earnings. Both the metrics also grew year over year. Robust increase in global traffic despite challenging consumer spending environment, increasing popularity of its Starbucks loyalty cards, efficiency improvements/cost controls and lower coffee costs boosted profits. Starbucks raised earnings expectations for the fourth quarter and fiscal year 2013 and also issued an impressive guidance for fiscal 2014.

Starbucks’ strong global retail footprint, successful food/beverage innovations, rapid growth in international markets and solid turnaround in the U.S. have enabled it to outperform even in this difficult consumer spending environment. In fact, Starbucks has beaten the Zacks Consensus Estimate in six of the past 10 quarters.

Moreover, the company has compelling growth drivers like La Boulange bakery items, Verismo at-home-coffee machine, Evolution juices, Teavana tea, K-Cups portion packs, loyalty program and food innovations to sustain earnings momentum in the upcoming quarters.

Other Stocks to Consider

Starbucks carries a Zacks Rank #3 (Hold). Other restaurateurs such as Burger King Worldwide, Inc. (BKW - Analyst Report), CEC Entertainment Inc. and Cracker Barrel Old Country Store, Inc. (CBRL - Snapshot Report) are currently doing well and have a bright outlook. All these stocks carry a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%