Starbucks: Long-Term Tailwinds, But Choppy Near-Term Recovery – Hold

Summary:

  • Near-term headwinds and consecutive downward revisions to guidance have contributed to recent stock price weakness.
  • Although the long-term strategic plan is sound, it is expected to take time to yield results.
  • In the immediate future, without a clear catalyst and with indications of additional near-term challenges, the market will likely remain on the sidelines.

Starbucks coffee sign hanging outside a shop

JohnFScott

Investment thesis

Starbucks (NASDAQ:SBUX) holds a dominant position in the growing and attractive coffee market. Yet, the company is facing significant near-term headwinds across geographies, resulting in disappointing Q2 results. This has sparked discussions among investors


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