Starbucks Corp (NASDAQ:SBUX) Earnings Model
Author: Alec Costanza, Published: October 27, 2020 9:07pm Category: Earnings Preview (Fiscal 4Q2020)
Model Description: This model predicts earnings and cash flows for Starbucks Corp (NASDAQ:SBUX) driven by estimates of comp-store sales and store count estimates. Ratio analysis is used to complete the financial statements.
Note From the Model Developer: Over the past few months, I monitored the changing phases for the retail stores in person. From complete closure of stores in March/April, to current day where of all stores in my area are open and operating with employees in-store. My model assumes that even with the possibility of what may or may not be a second wave of COVID, Starbucks has cultivated within their stores a way for consumers to still buy products whether it be through a drive-thru, mobile orders (especially with the new direct-pay rewards feature) or even in store. The model assumes a lower rate of traffic through 4Q2020, as winter approaches and capacity isn't at its peak. 1Q2021 and beyond assumes a quick growth for a return to normal and then stagnation to match a slow-growing market post-COVID.
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.