Shares of the coffee giant, Starbucks Corporation (SBUX - Free 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.
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. , CEC Entertainment Inc. and Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) are currently doing well and have a bright outlook. All these stocks carry a Zacks Rank #2 (Buy).