Starbucks Corp (NASDAQ:SBUX) Earnings Model
Author: Joshua Egan, Published: July 17, 2019 11:30am Category: Earnings Preview (Prior to the F3Q2019 SBUX Results)
Model Description: The primary drivers of this model are the estimates of comp store sales, net new stores, and the ratio of operating expenses (excluding depreciation) as a percentage of revenue, for each geographic region. Management's guidance is used as a reasonableness check against the forecasts entered into this model. Key assumptions include increased competition in China over the next few quarters from Luckin and other companies, an intensified economic downturn in Europe, and stronger results in the U.S. driven by the recent changes to the customer loyalty program and new beverage launches. As a result of these assumptions, I am modeling a strong improvement in the Americas revenue and operating margin over the course of the next four quarters. I am also modeling a slight decline in the CAP Segment revenue growth rate, with a slight contraction in operating margin in the first half of fiscal year 2020.
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.