Shares of the coffee giant,
), 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
Other Stocks to Consider
Starbucks carries a Zacks Rank #3 (Hold). Other restaurateurs
Burger King Worldwide, Inc.
CEC Entertainment Inc.
Cracker Barrel Old Country Store, Inc.
) are currently doing well and have a bright outlook. All these
stocks carry a Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
CEC ENTERTANMNT (CEC): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
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