Starbucks [$SBUX] posted a better-than-expected Q4 back in October, and forecasted a quicker recovery from the virus-laden economy. That was a refreshing change from the summer, when the pandy caused it to post a loss and caused management to caution that a rebound might take longer than bulls imagined.
Wall Street analysts have asserted that the virus is only a temporary roadblock.The company has stayed resilient and boosted its customer-retention efforts while pivoting to a new strategy, optimists argue.
Despite that, with the virus still claiming thousands of Americans lives a day, even bulls forewarn that this week’s earnings report may not show much progress toward a bounce back.
Make no mistake, fewer people are visiting Starbucks, though Placer.ai mentioned that things started to look up toward the end of 2020. Visits during the week of December 28 were down 17.5% YOY, the company’s best showing since mid-October.
Starbucks has gained nearly 17% in the past year, but the stock is off 3% in 2021. Analysts are seeking an EPS of 55 cents and revenue of $6.91 billion. Which is compared with 51 cents in the previous quarter and 79 cents in the year-earlier period.
Ultimately, The Street is pretty evenly split on the stock, with 47% of analysts having a Buy rating or the equivalent, while the remaining 53% rate it at Hold. The average price target is $109.47.