Starbucks (SBUX) on Tuesday withdrew its outlook for 2025, sending shares sharply lower before paring back most losses in intraday trading Wednesday. Bank of America analysts said a reset was largely expected and anticipate "easy wins."
The bank suggested the withdrawal of guidance, which came after CEO Brian Niccol took the reins last month, was effectively priced in. The coffee giant previously guided for 15% to 20% growth in earnings per share in fiscal 2025, but the Street consensus is for a decline of 0.3%, analysts said.
Starbucks said the decision “will allow ample opportunity to complete an assessment of the business and solidify key strategies.”
Shares of Starbucks initially tumbled on the news, but have since recovered and were little changed in Wednesday afternoon trading.
Starbucks' "brand remains fundamentally strong" the analysts said, adding "we see easy wins, think EPS growth still possible."
New CEO Brian Niccol could also be “well suited for SBUX turnaround," the analysts said, given similar challenges Niccol faced at Chipotle Mexican Grill (CMG). They cited comparable “reputational issues," but noted they are "not the widely circulated bear cases that surrounded both.”
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。