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Coffee Battle for Earnings Season: Starbucks (SBUX) vs. Dunkin (DNKN)

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In this video, we take a look at two restaurant stocks that are synonymous with coffee in order to get a better taste of which one is poised to deliver this earnings season. After all, while they might be in the same niche, they have seen very different trading lately while their fundamentals aren’t the same either.

First, let’s take a look at Dunkin Donuts , a New England favorite with incredible growth potential. However, the road has been rocky and this earnings season isn’t looking especially promising. Shares have a Zacks Rank #3 (hold) while the Earnings ESP is nearly negative 2%, so not exactly a great combination. Additionally, the stock has a VGM score of ‘F’, meaning that its fundamentals leave much to be desired too.

DUNKIN BRANDS Price, Consensus and EPS Surprise

DUNKIN BRANDS Price, Consensus and EPS Surprise | DUNKIN BRANDS Quote

Starbucks (SBUX - Free Report) on the other hand, is looking a bit more promising, even though it too has a Zacks Rank #3 (hold). The strength for SBUX comes from its much stronger fundamental outlook which is predicated on its VGM score of ‘B’. Plus, take a look at this price and consensus chart below, SBUX really knows how to steadily increase expectations and growth, year after year.

STARBUCKS CORP Price and Consensus

STARBUCKS CORP Price and Consensus | STARBUCKS CORP Quote

So while neither look likely to perk up a portfolio this earnings season, SBUX is hard to bet against given its stronger fundamental outlook and top-notch history. DNKN could surprise though, but it is worth pointing out that recent analyst shifts anticipate more sluggish results. 

Make sure to watch the video for more insights on both of these companies, as well as a more thorough discussion of their charts. And if you’d like more information on how to trade earnings reports, make sure to check out our podcast below:


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