Importantly, Starbucks is giving more responsibility to third-party partners outside North America instead of directly managing as many stores itself. This approach could free up more time and money for company-owned locations, especially in the U.S., where most of its directly operated stores are located. The company has said it wants to double its international store count to about 40,000, mostly through licensed partners.
As part of that strategy, Starbucks entered a joint venture for its China business last year and is reviewing options for its Japan operations. At the same time, Starbucks’ business has been improving after a long sales slump. The company has introduced new products, refreshed its marketing, and started remodeling stores as part of its turnaround plan. As a result, its international comparable sales rose by about 3% in the three months through March 29, which marked the third straight quarter of growth.
Is SBUX Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 17 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average SBUX price target of $110.88 per share implies 10.2% upside potential.Disclaimer & DisclosureReport an Issue
