Starbucks Corp (NASDAQ:SBUX) Earnings Model
Author: John Groshek, Published: July 21, 2019 11:15pm Category: Earnings Preview (Fiscal 3Q2019)
Model Summary: There are multiple primary drivers controlling this model, in each geographic region (Americas, CAP, and EMEA). The primary drivers are net new company operated stores added, comp store sales, and the ratio of operating expenses (excluding depreciation) as a percentage of revenue. This model assumes that the CAP segment will face increased competition from companies such as Luckin, who has a better delivery and mobile app presence in the region. The model also assumes that the U.S. segment will have improved results because of new beverage offerings and beneficial changes to the customer loyalty program, and the European segment will be facing economic downturn. These assumptions have led me to forecast growth in U.S. operating margin and revenue, as well as a decline in CAP operating margin and revenue growth rate.
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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.