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Starbucks (SBUX - Free Report) reported robust results for fourth-quarter fiscal 2023 on Nov 2, supported by a robust consumer demand. The company has a VGM Score of A (as of Nov 3). The world’s largest coffee house chain belongs to the Zacks Retail and Wholesale sector and currently has a Zacks Rank #3 (Hold).
According to Reuters, after reporting its earnings results, the company gained about 9.5% on Thursday, boosting its market capitalization by nearly $10 billion driven by an optimistic outlook on its annual profit estimates.
Earnings in Details
Starbucks has reported earnings per share (EPS) of $1.06, which beat the Zacks Consensus Estimate of 97 cents by 9.27%. The upbeat performance of the company in the current quarter was supported by the 39% increase in the reported EPS from the year-ago quarter.
SBUX reported net revenues of $9.37 billion for the fourth quarter, beating the Zacks Consensus Estimate of $9.22 billion by 1.63%. Net revenues of the coffeehouse witnessed a notable upswing of 11.4% from the year-ago quarter.
GAAP-compliant operating margin for the company also surged to 18.2% from 14.2% in the prior year, driven by in-store operational efficiencies, sales leverage and pricing.
Segment Details
Fourth-quarter fiscal 2023 revenues generated from the company’s North America segment grew 12% from the year-ago quarter reaching levels of $6.9 billion. The return of the Pumpkin Spice Latte (PSL) in August, along with new menu items like the Iced Pumpkin Cream Chai Tea Latte and apple-flavored Espressos, contributed to an 8% increase in U.S. comparable store sales for the quarter.
The international segment of the coffeehouse giant also witnessed an upswing in the revenues for the quarter, increasing about 11% from the year-ago quarter, reaching a figure of $1.98 billion.
Fiscal 2024 Guidance
The company forecasts its global revenues to grow by 10-12%, and EPS growth remain at 15-20%.
According to the Reuters article, the company anticipates achieving cost savings of $3 billion over the next three years by enhancing store efficiencies and optimizing manufacturing and sourcing processes.
ETFs in Focus
Investors wanting to invest in the coffee house chain can consider the following ETFs with exposure to the company.
AdvisorShares Restaurant ETF employs an active strategy of investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenues from the restaurant business. The fund has a basket of 26 securities and has gathered an asset base of $2.3 million.
AdvisorShares Restaurant ETF has an exposure of 4.35% in SBUX and charges an annual fee of 0.99%.
Monarch Blue Chips Core seeks to track the performance of the Kingsview Blue Chips Core Index with a basket of 25 securities. The fund has gathered an asset base of $48.1 million and charges an annual fee of 1.25%.
Monarch Blue Chips Core has an exposure of 4.13% in SBUX.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund seeks to track the performance of the Consumer Discretionary Select Sector Index with a basket of 56 securities. The fund has gathered an asset base of $15.89 billion and charges an annual fee of 0.10%
Consumer Discretionary Select Sector SPDR Fund has an exposure of 3.55% in SBUX.
Brookstone Value Stock ETF employs an active strategy of investing in companies that offer strong value. The fund has a basket of 31 securities and has gathered an asset base of $14.5 million.
Brookstone Value Stock ETF has an exposure of 3.24% in SBUX and charges an annual fee of 0.95%.
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Starbucks Brews Strong Q4 Earnings: ETFs in Focus
Starbucks (SBUX - Free Report) reported robust results for fourth-quarter fiscal 2023 on Nov 2, supported by a robust consumer demand. The company has a VGM Score of A (as of Nov 3). The world’s largest coffee house chain belongs to the Zacks Retail and Wholesale sector and currently has a Zacks Rank #3 (Hold).
According to Reuters, after reporting its earnings results, the company gained about 9.5% on Thursday, boosting its market capitalization by nearly $10 billion driven by an optimistic outlook on its annual profit estimates.
Earnings in Details
Starbucks has reported earnings per share (EPS) of $1.06, which beat the Zacks Consensus Estimate of 97 cents by 9.27%. The upbeat performance of the company in the current quarter was supported by the 39% increase in the reported EPS from the year-ago quarter.
SBUX reported net revenues of $9.37 billion for the fourth quarter, beating the Zacks Consensus Estimate of $9.22 billion by 1.63%. Net revenues of the coffeehouse witnessed a notable upswing of 11.4% from the year-ago quarter.
GAAP-compliant operating margin for the company also surged to 18.2% from 14.2% in the prior year, driven by in-store operational efficiencies, sales leverage and pricing.
Segment Details
Fourth-quarter fiscal 2023 revenues generated from the company’s North America segment grew 12% from the year-ago quarter reaching levels of $6.9 billion. The return of the Pumpkin Spice Latte (PSL) in August, along with new menu items like the Iced Pumpkin Cream Chai Tea Latte and apple-flavored Espressos, contributed to an 8% increase in U.S. comparable store sales for the quarter.
The international segment of the coffeehouse giant also witnessed an upswing in the revenues for the quarter, increasing about 11% from the year-ago quarter, reaching a figure of $1.98 billion.
Fiscal 2024 Guidance
The company forecasts its global revenues to grow by 10-12%, and EPS growth remain at 15-20%.
According to the Reuters article, the company anticipates achieving cost savings of $3 billion over the next three years by enhancing store efficiencies and optimizing manufacturing and sourcing processes.
ETFs in Focus
Investors wanting to invest in the coffee house chain can consider the following ETFs with exposure to the company.
AdvisorShares Restaurant ETF (EATZ - Free Report)
AdvisorShares Restaurant ETF employs an active strategy of investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenues from the restaurant business. The fund has a basket of 26 securities and has gathered an asset base of $2.3 million.
AdvisorShares Restaurant ETF has an exposure of 4.35% in SBUX and charges an annual fee of 0.99%.
Monarch Blue Chips Core ETF (MBCC - Free Report)
Monarch Blue Chips Core seeks to track the performance of the Kingsview Blue Chips Core Index with a basket of 25 securities. The fund has gathered an asset base of $48.1 million and charges an annual fee of 1.25%.
Monarch Blue Chips Core has an exposure of 4.13% in SBUX.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund seeks to track the performance of the Consumer Discretionary Select Sector Index with a basket of 56 securities. The fund has gathered an asset base of $15.89 billion and charges an annual fee of 0.10%
Consumer Discretionary Select Sector SPDR Fund has an exposure of 3.55% in SBUX.
Brookstone Value Stock ETF (BAMV - Free Report)
Brookstone Value Stock ETF employs an active strategy of investing in companies that offer strong value. The fund has a basket of 31 securities and has gathered an asset base of $14.5 million.
Brookstone Value Stock ETF has an exposure of 3.24% in SBUX and charges an annual fee of 0.95%.