Starbucks Corp (NASDAQ:SBUX) Earnings Model
Author: Apoorva Nanjappa, Published: July 21, 2019 10:10pm Category: Earnings Preview (Fiscal 3Q2019)
Model Summary: The three fundamental elements that generate this model are the estimated net new stores, comp store sales, and the operating expenses excluding depreciation as a percentage of revenue. The primary inputs were influenced by management's guidance as a check to maintain that the estimated values were within reasonable ranges. The principal assumptions were stronger results in the U.S due to changes in the customer loyalty program and new beverage launches. as well as increased competition in China from Luckin and other companies, and stronger economic downturn in Europe. On behalf of these assumptions, I modeled an increased growth of revenue in the Americas and a slight decline in Europe and CAP segments over the next fiscal year.
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.