Starbucks (SBUX) is scheduled to announce its second-quarter earnings on April 25 after the market closes. As of April 17, the company was trading at $75.12—a rise of 16.0% since the announcement of its first-quarter earnings on January 24. Starbucks stock was trading at a premium of 58.6% from its 52-week low of $47.37 and at a discount of 2.4% from its 52-week high of $76.95.
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What drove the stock?
In the first quarter, Starbucks posted an adjusted EPS of $0.68 on revenues of $6.63 billion, which beat analysts’ EPS estimate of $0.65 and revenue expectations of $6.49 billion. The company’s overall SSSG (same-store sales growth) was 4.0%, which beat analysts’ expectation of 2.8%. The company’s SSSG was driven by a strong performance in the Americas segment and the China and Asia-Pacific segment. The strong first-quarter performance and investors’ optimism about the company’s initiatives to drive its SSSG led to a rise in the stock price.
Since the beginning of 2019, Starbucks has returned 16.6%. During the same period, McDonald’s (MCD) and Dunkin’ Brands (DNKN) have returned 7.9% and 18.8%, respectively. The broader comparative index, the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests in restaurant and travel companies, has returned 20.5%.