I think we can all agree that coffee is awesome. I think it was back in 2012 when I quit coffee for a year, under the presumption that most homeless people — worldwide — were avid coffee drinkers. I endeavored to separate myself from that chaff and went on a year long journey to extricate myself from the muddied beverage. You can search the archives and read about me and my Earl Grey Tea and how it was the only form of beverage suitable for a gentleman, such as myself.
After I fell off the wagon, like most things I do, I because obsessed with coffee. I read books about it and now consider myself an expert, an amateur barista/aficionado, if I might be so bold as to say so.
I understand the differences between arabica and robusta, the flavor profiles between a Vienna and a French Roast and I can make any of the bullshit drinks that you enjoy in Starbucks. My tour de force is my seasonal Pumpkin Latte, which blow Starfucks completely out of the water.
I digress.
I think we can also agree on the fact that Starbucks is boring and mostly trash. Even if you like their coffee — you don’t love it. If I had a coffee shop, you’d fucking love it — else I’d kill you. But I think it’s fair to say, most people love local coffee shops. There is nothing like a good hipster coffee shop. I generally wear my Bernie Sanders t-shirt when visiting these locales and ask for grass fed lattes while holding my Hillary Clinton book.
Seriously, Starbucks is sliding hard today and I cannot think of another major company in more trouble than them. They’re closing down 379 Teavana’s this year — taking the blackpill for their misguided acquisition.
Their mall based shoppes are under pressure due to lack of foot traffic.
Local coffee shoppes are popping up everywhere, eating away at the margins.
Starbucks On Call sees Q4 EPS of $0.54-0.55 vs $0.58 consensus, expects FY revs growth to come in at low end of previous guidance, and comps growth of 3-4% vs prior msd guidance (59.50 +1.56)
Will be closing all 379 Teavana mall stores in the coming year
Trends and ongoing macro pressures have them a little more cautious
Comp trends softened in backhalf of quarter and has continued into July
Stifel downgraded them, citing lack of visibility. This is wrong. The earnings and revenues visibility is crystal clear: they’re heading lower.
Stifel downgrades SBUX to Hold from Buy and lowers their tgt to $58 from $66 Buy following solid F3Q17 results but disappointing F4Q17 guidance, implying further deceleration in global and U.S. comparable store sales growth. Broadly, firm believes decelerating global comp growth (F3Q17 is the third consecutive quarter the 2-year CAGR decelerated, with further slowdown anticipated in F4Q17) suggests a combination of macroeconomic pressures in retail/restaurants and share loss. They think share loss is most meaningful as it likely requires increased investment to change the current glide path, which could likely lead to mgmt reducing long-term EPS growth targets in conjunction with F4Q17 results in November 2017. They believe lack of visibility on the timing of a sustained acceleration in comp growth will result in shares remaining range-bound near-term.
I think Howard Schultz is a genius. I read his book about turning Starbucks around and respect his leadership. From 2006-2009, SBUX was in a serious decline because Schultz had left and the company was literally falling apart. He came back and tried to reinvigorate the brand through a sundry of common sense changes, such as making the coffee shoppes smell like coffee again. They had been using vacuum sealed coffee, which resulted in the stores being bereft of the scent of java. Fucking retarded. But, like all things in life, they die.
Schultz is gone again, retired, and now it’s time for SBUX to being its long, arduous, winding road towards irrelevancy.
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It sure did not help Starbucks’ image when pinko marxist trash Chief Executive Officer Howard Schultz, who wrote he had a “heavy heart” over U.S. President Donald Trump’s immigration order, said the company plans to hire 10,000 refugees illegals over five years around the world.
https://tinyurl.com/y9acx9vo
Haven’t stepped foot there since and i don’t think m the only one.
Can’t blame Jim Donald this time.
A large McDonald’s coffee with two creams….for $1. ‘nuf said….
Maybe they can reinvigorate by taking a page from McDs and start uberBucks delivery.
The Mexicans ask for 6 creams and 6 sugars.
Flavor to suit…
why did u change the image?I liked the first one. ‘SUCKS’
It was low reso and irritated me.
Nonsense. Every hipster eventually starts a family in the suburbs and drinks Starbucks daily.
And don’t forget the Starbucks boycott over Shultze’s commitment to hire 100,000 male army-aged Muslim refugees.
You know, the one I’m part of.
Put that coffe down! Coffee is for closers.
https://youtu.be/r6Lf8GtMe4M
traderconfessions goes into Shariabucks wearing his “I’m with Her” shirt whilst crying about his feelings about drumpf and requesting his free birthday coffee even though it’s not his birthday. Sad!
One thing I haven’t figured out about SBUX is that their food SSUX. Every so often I am hit with hunger pangs or an attack of optimism and I try some slice of their ERSatz edibles. What a mistake. I have pretty much given up on anything in the store- but I still buy their beans, as I have been unable – so far- to find anything that beats their Sumatra – I grind it at home in small batches – as it is now as expensive as cheap caviar. But mostly I drink the cheap shit Arabica. If they actually could figure out how to get decent food in the stores they might be something. But for now the queues of X/Y/Z generations are still lined up for their sugary somethings. And behind the glass the inedible picture-perfect food from last year persists past its sell-by date. Yuck.
Good post Fly. I agree with your observations and sentiment. You know why things are as you observe, and many of us do too. Perhaps Fly or someone else would like to opine. I’m not in the mood to write today. Have a good weekend.
I bought fidget spinner no need for coffee now. Long fidget spinner
Try Segafredo, when in Miami
Coffee needs massive deflation. Five bucks for coffe is retarded.
Mc Donalds will gain more Mc cafe revenue.
And Walmart has a Mc Donalds in every store so they should promote cheap coffee to draw traffic. Or free coffee with online purchase to combat amazon.
You guys notice trump is finally starting to drain the swamp. And his new pitbull spokes people keeps the dnc reacting to hang themselves and the liberal sold out media.