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Starbucks (SBUX) Spruces Up Menu for Upcoming Fall Season
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Starbucks Corporation (SBUX - Free Report) announced the launch of limited-time seasonal bakery items and beverages for the fall season. The company stated that the items will be available in stores and online, starting from Aug 24.
It announced the return of Pumpkin Spice Latte and Pumpkin Cream Cold Brew across stores in the United States and Canada. The Pumpkin Spice Latte comprises espresso and steamed milk in combination with pumpkin, cinnamon, nutmeg and clove. Meanwhile, Pumpkin Cream Cold Brew comes with vanilla-flavored syrup along with a pumpkin cream cold foam and a pumpkin spice topping.
Moreover, the company announced the launch of two Starbucks Reserve whole-bean coffees — Starbucks Reserve Vietnam Da Lat and Starbucks Reserve Costa Rica Naranjo — across its stores in the United States. Coming to bakery items, it announced the addition of Pumpkin Cream Cheese Muffin and Pumpkin Scone.
The company stated that the items can be availed using the Starbucks app for order ahead and pick-up options, grab and go in store, drive-thru and curbside pick-up. Also, the items have been made available for ordering through the Uber Eats app.
Focus on Menu Innovations
Starbucks is strengthening its product portfolio with significant innovation around beverages, refreshments, health and wellness, tea, and core food offerings. To this end, the company is leaning toward fast-growing categories like Cold Brew, Draft Nitro beverages and plant-based modifiers, including almond, coconut and soy milk alternatives.
Apart from the numerous beverage innovations, Starbucks has also been making efforts to offer more nutritional and healthy products to customers. Meanwhile, the company’s Reserve Roastery and Tasting Room elevate the coffee experience to the next level, with small-batch super-premium coffee produced using innovative coffee-brewing techniques.
Price Performance
Image Source: Zacks Investment Research
Coming to the price performance, shares of Starbucks have gained 39.2% in the past year compared with the industry's 24.6% growth. The company benefits from initiatives, with respect to product innovation, brand building, opening stores in new and existing markets, remodeling existing stores, deploying technology and controlling costs. This along with the focus on Global Coffee Alliance with Nestle bodes well.
Meanwhile, earnings estimates for 2021 have moved up in the past 60 days, depicting analysts’ optimism regarding the stock’s growth potential. However, the company cautioned of a slower recovery in China. It has narrowed both international and China same-store sales growth expectations for fiscal 2021.
Some better-ranked stocks in the same space are Papa John's International, Inc. (PZZA - Free Report) , The Wendy's Company (WEN - Free Report) and Jack in the Box Inc. (JACK - Free Report) , each currently carrying a Zacks Rank #2 (Buy).
Papa John's 2021 earnings are expected to increase 122.9%.
Wendy's has a three-five-year earnings per share growth rate of 9%.
Jack in the Box has a trailing four-quarter earnings surprise of 26.4%, on average.
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Starbucks (SBUX) Spruces Up Menu for Upcoming Fall Season
Starbucks Corporation (SBUX - Free Report) announced the launch of limited-time seasonal bakery items and beverages for the fall season. The company stated that the items will be available in stores and online, starting from Aug 24.
It announced the return of Pumpkin Spice Latte and Pumpkin Cream Cold Brew across stores in the United States and Canada. The Pumpkin Spice Latte comprises espresso and steamed milk in combination with pumpkin, cinnamon, nutmeg and clove. Meanwhile, Pumpkin Cream Cold Brew comes with vanilla-flavored syrup along with a pumpkin cream cold foam and a pumpkin spice topping.
Moreover, the company announced the launch of two Starbucks Reserve whole-bean coffees — Starbucks Reserve Vietnam Da Lat and Starbucks Reserve Costa Rica Naranjo — across its stores in the United States. Coming to bakery items, it announced the addition of Pumpkin Cream Cheese Muffin and Pumpkin Scone.
The company stated that the items can be availed using the Starbucks app for order ahead and pick-up options, grab and go in store, drive-thru and curbside pick-up. Also, the items have been made available for ordering through the Uber Eats app.
Focus on Menu Innovations
Starbucks is strengthening its product portfolio with significant innovation around beverages, refreshments, health and wellness, tea, and core food offerings. To this end, the company is leaning toward fast-growing categories like Cold Brew, Draft Nitro beverages and plant-based modifiers, including almond, coconut and soy milk alternatives.
Apart from the numerous beverage innovations, Starbucks has also been making efforts to offer more nutritional and healthy products to customers. Meanwhile, the company’s Reserve Roastery and Tasting Room elevate the coffee experience to the next level, with small-batch super-premium coffee produced using innovative coffee-brewing techniques.
Price Performance
Image Source: Zacks Investment Research
Coming to the price performance, shares of Starbucks have gained 39.2% in the past year compared with the industry's 24.6% growth. The company benefits from initiatives, with respect to product innovation, brand building, opening stores in new and existing markets, remodeling existing stores, deploying technology and controlling costs. This along with the focus on Global Coffee Alliance with Nestle bodes well.
Meanwhile, earnings estimates for 2021 have moved up in the past 60 days, depicting analysts’ optimism regarding the stock’s growth potential. However, the company cautioned of a slower recovery in China. It has narrowed both international and China same-store sales growth expectations for fiscal 2021.
Zacks Rank & Key Picks
Starbucks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same space are Papa John's International, Inc. (PZZA - Free Report) , The Wendy's Company (WEN - Free Report) and Jack in the Box Inc. (JACK - Free Report) , each currently carrying a Zacks Rank #2 (Buy).
Papa John's 2021 earnings are expected to increase 122.9%.
Wendy's has a three-five-year earnings per share growth rate of 9%.
Jack in the Box has a trailing four-quarter earnings surprise of 26.4%, on average.