Starbucks stock rises as Hedgeye adds it to long position
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2024
0mins
Should l Buy SBUX?
Source: SeekingAlpha
Starbucks Corp's stock rose by 4.31%, reaching a 20-day high, amid positive market conditions with the Nasdaq-100 up 1.70% and the S&P 500 up 0.99%.
The increase in stock price is attributed to Hedgeye introducing Starbucks as a new long position, highlighting significant improvements under CEO Brian Niccol's leadership, including labor reintegration and reduced corporate complexity. Analyst Bennett Cheer expressed a positive outlook, indicating that Starbucks is transitioning towards comp acceleration and margin recovery, with early signs of this shift already visible.
This endorsement from Hedgeye could bolster investor confidence in Starbucks, especially as the company navigates challenges in revitalizing its global operations. The positive sentiment surrounding the stock may lead to increased interest from investors looking for growth opportunities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SBUX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to rise
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 95.390
Low
59.00
Averages
96.12
High
115.00
Current: 95.390
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CGUS Stock Performance Analysis and ETF Dynamics
- Price Fluctuation Analysis: CGUS's 52-week low is $28.95 and high is $41.38, with the latest trade at $40.83, indicating price volatility near the high point, which may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable insights for investors, helping to assess price trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding focuses on those experiencing notable inflows (new units created) or outflows (old units destroyed), assessing their impact on underlying assets and market sentiment.
See More
Starbucks Shareholders Pressure Board Over Labor Relations Oversight
- Shareholder Pressure: A group of long-term Starbucks (SBUX) shareholders is pressuring the board over alleged sustained failures in labor relations, urging other shareholders to vote against the reelection of independent director Jørgen Vig Knudstorp and governance chair Beth Ford.
- Escalating Labor Dispute: Contract negotiations with the Starbucks Workers United union have stalled since early 2024, with demands for a $20/hour wage and 5% annual raises, highlighting the company's ongoing tensions in labor relations.
- Strike Expansion: The 'Red Cup Rebellion' strike launched by workers has expanded to over 670 stores and 12,000 employees as of early 2026, indicating significant employee dissatisfaction and urgent demands for improved working conditions.
- Record Settlement Costs: Starbucks paid a record $38.9 million settlement to New York City for workweek law violations, intensifying pressure on the company regarding labor relations, even as it defends its workplace policies and employee benefits.
See More
Analysts Cut Wendy's Price Targets Following Earnings Miss
- Significant Stock Decline: Wendy's stock fell over 6% on Tuesday following analyst price target cuts, reflecting investor concerns about the company's future performance after its latest quarterly results missed expectations.
- Analyst Target Adjustments: At least ten analysts lowered their price targets after Wendy's fourth-quarter and full-year 2025 earnings release, with Goldman Sachs reducing its target from $8 to $7 and Morgan Stanley from $9 to $8, both maintaining sell ratings.
- Sales and Net Income Drop: Although Wendy's beat earnings expectations for the quarter, total sales fell 8% year-over-year to $3.4 billion, and non-GAAP net income plummeted 36% to $0.16 per share, indicating significant weakness in the company's fundamentals.
- Poor Future Outlook: Wendy's guidance for full-year 2026 non-GAAP net income is set at $0.56 to $0.60 per share, well below the consensus analyst estimate of $0.85, further exacerbating market pessimism regarding its growth prospects.
See More
Analysis of Big Tech's $650 Billion AI Investment
- Massive Capital Expenditure: In 2026, major tech companies are projected to invest $650 billion in capital expenditures, surpassing the combined spending of 21 major U.S. automakers and energy firms, reflecting immense confidence and enthusiasm for AI investments across the industry.
- Market Reaction and Risks: While the market remains optimistic about AI's potential, concerns about the timeline for returns and economic viability are intensifying, particularly as these companies face high expenditures and the looming risk of an economic bubble.
- Cloud Business Growth: Google Cloud's business grew by 48% over the past year with a 30% operating margin, indicating that while making substantial investments, cloud services remain a crucial revenue pillar for the company, potentially driving further income growth in the future.
- Semiconductor Sector Beneficiaries: As big tech ramps up spending on servers and semiconductors, companies like Nvidia and ASML are expected to be major beneficiaries, with their revenues and margins likely to see significant boosts in the short term, further solidifying their market positions.
See More
Cotti Coffee's Expansion Challenges European Market
- Increased Market Competition: Cotti Coffee's plan to launch a low-cost, digital-first coffee model across Western Europe and the UK is expected to pressure established chains like Starbucks and Costa Coffee, potentially leading to a redistribution of market share.
- Rapid Expansion Strategy: Since entering the European market in 2025, Cotti Coffee has opened stores in cities like Paris and Cologne, with plans to debut in London in 2026, showcasing its ambitious global expansion strategy.
- Innovative Business Model: By utilizing small pickup-oriented stores and app-based ordering combined with aggressive discounting, Cotti Coffee aims to attract value-seeking consumers, posing a threat to independent cafés and high-end roasters.
- Global Network Advantage: With over 14,000 outlets across 28 countries, Cotti Coffee's extensive global network enables rapid market entry and scale advantages, further solidifying its position as a major global value-focused coffee player.
See More
Dutch Bros Reports Strong Q4 Earnings Amid Expansion Plans
- Same-Store Sales Growth: Dutch Bros reported a 7.7% increase in same-store sales and a 5.5% rise in transactions for Q4, with company-owned stores outperforming at a 9.7% sales increase, indicating strong market performance and potential for increased market share.
- Clear Expansion Plans: The company opened 154 new shops in 2025 and expects to add at least 181 more in 2026, with a clear target of 2,029 shops by 2029, demonstrating its strategic clarity and execution capability in expansion.
- Strong Cash Flow: Dutch Bros generated $54.4 million in free cash flow for 2025, while reducing capital expenditures per shop from $1.8 million to $1.3 million, showcasing its ability to self-fund expansion and effective cost control.
- Revenue and Profit Growth: Q4 total revenue surged 29% year-over-year to $443.6 million, with adjusted EBITDA skyrocketing 49% to $72.6 million, reflecting the company's strong growth potential in both revenue and profitability.
See More
CGUS Stock Performance Analysis and ETF Dynamics
- Price Fluctuation Analysis: CGUS's 52-week low is $28.95 and high is $41.38, with the latest trade at $40.83, indicating price volatility near the high point, which may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable insights for investors, helping to assess price trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding focuses on those experiencing notable inflows (new units created) or outflows (old units destroyed), assessing their impact on underlying assets and market sentiment.
See More
Starbucks Shareholders Pressure Board Over Labor Relations Oversight
- Shareholder Pressure: A group of long-term Starbucks (SBUX) shareholders is pressuring the board over alleged sustained failures in labor relations, urging other shareholders to vote against the reelection of independent director Jørgen Vig Knudstorp and governance chair Beth Ford.
- Escalating Labor Dispute: Contract negotiations with the Starbucks Workers United union have stalled since early 2024, with demands for a $20/hour wage and 5% annual raises, highlighting the company's ongoing tensions in labor relations.
- Strike Expansion: The 'Red Cup Rebellion' strike launched by workers has expanded to over 670 stores and 12,000 employees as of early 2026, indicating significant employee dissatisfaction and urgent demands for improved working conditions.
- Record Settlement Costs: Starbucks paid a record $38.9 million settlement to New York City for workweek law violations, intensifying pressure on the company regarding labor relations, even as it defends its workplace policies and employee benefits.
See More
Analysts Cut Wendy's Price Targets Following Earnings Miss
- Significant Stock Decline: Wendy's stock fell over 6% on Tuesday following analyst price target cuts, reflecting investor concerns about the company's future performance after its latest quarterly results missed expectations.
- Analyst Target Adjustments: At least ten analysts lowered their price targets after Wendy's fourth-quarter and full-year 2025 earnings release, with Goldman Sachs reducing its target from $8 to $7 and Morgan Stanley from $9 to $8, both maintaining sell ratings.
- Sales and Net Income Drop: Although Wendy's beat earnings expectations for the quarter, total sales fell 8% year-over-year to $3.4 billion, and non-GAAP net income plummeted 36% to $0.16 per share, indicating significant weakness in the company's fundamentals.
- Poor Future Outlook: Wendy's guidance for full-year 2026 non-GAAP net income is set at $0.56 to $0.60 per share, well below the consensus analyst estimate of $0.85, further exacerbating market pessimism regarding its growth prospects.
See More
Analysis of Big Tech's $650 Billion AI Investment
- Massive Capital Expenditure: In 2026, major tech companies are projected to invest $650 billion in capital expenditures, surpassing the combined spending of 21 major U.S. automakers and energy firms, reflecting immense confidence and enthusiasm for AI investments across the industry.
- Market Reaction and Risks: While the market remains optimistic about AI's potential, concerns about the timeline for returns and economic viability are intensifying, particularly as these companies face high expenditures and the looming risk of an economic bubble.
- Cloud Business Growth: Google Cloud's business grew by 48% over the past year with a 30% operating margin, indicating that while making substantial investments, cloud services remain a crucial revenue pillar for the company, potentially driving further income growth in the future.
- Semiconductor Sector Beneficiaries: As big tech ramps up spending on servers and semiconductors, companies like Nvidia and ASML are expected to be major beneficiaries, with their revenues and margins likely to see significant boosts in the short term, further solidifying their market positions.
See More
Cotti Coffee's Expansion Challenges European Market
- Increased Market Competition: Cotti Coffee's plan to launch a low-cost, digital-first coffee model across Western Europe and the UK is expected to pressure established chains like Starbucks and Costa Coffee, potentially leading to a redistribution of market share.
- Rapid Expansion Strategy: Since entering the European market in 2025, Cotti Coffee has opened stores in cities like Paris and Cologne, with plans to debut in London in 2026, showcasing its ambitious global expansion strategy.
- Innovative Business Model: By utilizing small pickup-oriented stores and app-based ordering combined with aggressive discounting, Cotti Coffee aims to attract value-seeking consumers, posing a threat to independent cafés and high-end roasters.
- Global Network Advantage: With over 14,000 outlets across 28 countries, Cotti Coffee's extensive global network enables rapid market entry and scale advantages, further solidifying its position as a major global value-focused coffee player.
See More
Dutch Bros Reports Strong Q4 Earnings Amid Expansion Plans
- Same-Store Sales Growth: Dutch Bros reported a 7.7% increase in same-store sales and a 5.5% rise in transactions for Q4, with company-owned stores outperforming at a 9.7% sales increase, indicating strong market performance and potential for increased market share.
- Clear Expansion Plans: The company opened 154 new shops in 2025 and expects to add at least 181 more in 2026, with a clear target of 2,029 shops by 2029, demonstrating its strategic clarity and execution capability in expansion.
- Strong Cash Flow: Dutch Bros generated $54.4 million in free cash flow for 2025, while reducing capital expenditures per shop from $1.8 million to $1.3 million, showcasing its ability to self-fund expansion and effective cost control.
- Revenue and Profit Growth: Q4 total revenue surged 29% year-over-year to $443.6 million, with adjusted EBITDA skyrocketing 49% to $72.6 million, reflecting the company's strong growth potential in both revenue and profitability.
See More
