Today Starbucks Corporation (NASDAQ:SBUX) announced that they will be closing four Teavana tea bars, three in NYC and one is Beverly Hill, after poor perfromance. The company will however leave open their one remaining Teavana bar in Seattle in order to test new ideas.
Starbucks Corporation (NASDAQ:SBUX) acquired Teavana in late 2012 and a year later began opening tea bars in addition to the 350 Teavana retail locations. The bars were set up similarly to that of a typical Starbucks, but served tea instead of coffee as their primary offering. The four locations will now be converted into regular Starbucks retail stores.
“These changes to the Teavana specialty retail portfolio of more than 350 stores will allow the company to focus on new product innovation and elevating the Teavana tea experience through its Starbucks stores, reaching more customers with its expansive store footprint,” stated the company. “Additionally, Teavana will focus on evolving a customized tea experience throughout specialty retail by bringing exotic blends, great flavors, wellness and innovation to customers globally.”
The stock is down 0.12% or $0.07 following the news, hitting $58.96 per share. About 28.21M shares traded hands or 181.82% up from the average. SBUX has risen 10.88% since June 17, 2015 and is uptrending. It has outperformed the S&P500 by 19.74%.
From a total of 8 analysts covering Starbucks Corporation (NASDAQ:SBUX) stock, 6 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $71 while the lowest target price is $59. The mean of all analyst targets is $65.27 which is 10.70% above today’s ($58.96) stock price. Starbucks Corporation was the topic of 13 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. BMO Capital Markets maintained shares on October 30 with a “Outperform” rating. Zacks upgraded shares to a”Hold” rating and a $59 target share price in their report from an August 24. RBC Capital Markets maintained SBUX stock in a recent report from October 30 with a “Outperform” rating. Finally, Vetr downgraded the stock to a “Buy” rating in a report they issued on a September 3.
The institutional sentiment increased to 1.24 in Q2 2015. It’s up 0.28, from 0.96 in 2015Q2. The ratio improved, as 41 funds sold all their Starbucks Corporation shares they owned while 439 reduced their positions. 115 funds bought stakes while 482 increased their total positions. Institutions now own 941.87 million shares which is 54.43% less than the previous share count of 2.07 billion in 2015Q2.
Pacifica Capital Investments Llc holds 20.74% of its total portfolio in Starbucks Corporation, equating to 559,051 shares. R.H. Dinel Investment Counsel Inc. owns 162,300 shares representing 9.63% of their total US portfolio. Moreover, Mader & Shannon Wealth Management Inc. has 7.57% of their total portfolio invested in the company, equating to 107,008 shares. The Maryland-based Park Circle Co has a total of 7.39% of their portfolio invested in the stock. Polen Capital Management Llc, a Florida-based fund reported 6.34 million shares owned.
Since March 16, 2015, the stock had 0 insider buys, and 7 sales for a total of $83.90 million in net activity. Teruel Javier G sold 61,534 shares worth $3.38M. Shennan James G Jr sold 19,724 shares worth $1.09M. Weatherup Craig sold 87,654 shares worth $5.05M. Maw Scott Harlan sold 23,440 shares worth $1.33M. The insider Schultz Howard D sold 39,819 shares worth $2.36 million.
Starbucks Corporation is the roaster, marketer and retailer of specialty coffee. The company has a market cap of $87.47 billion. The Firm purchases and roasts coffees that it sells, along with coffee, tea and other beverages, and a range of fresh food items, through Company-operated stores. It has 36.15 P/E ratio. It also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts.