How to Trade Starbucks After Fiscal Q4 Performance

<p><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-starbucks-q4-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_idea_of_the_week_Starbucks-1.png" data- data- data-alt="Trade idea of the week Starbucks" data-height="376" data-width="800"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_idea_of_the_week_Starbucks-1.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_idea_of_the_week_Starbucks-1.png"></source></picture></a></p><p>Consumer discretionary stocks such as Starbucks are often used as an indicator of the health of the US economy. When the economy is healthy with low unemployment, consumers tend to spend more on discretionary items such as coffee. When economic times are tough, consumers tend to hold back on such purchases. </p><p>Learn more about Starbucks' fiscal fourth-quarter performance, what the management team say about the economy and what analysts are forecasting for the stock.</p><table border="1">
<tbody>
<tr>
<td><b><span>Stock:</span></b></td>
<td><b><span>Starbucks Inc</span></b></td>
</tr>
<tr>
<td><span><b>Symbol for Invest.MT5 Account:</b></span></td>
<td><a href="https://admiralmarkets.com/instrument/starbucks-corp-sbux" target="_blank" rel="noopener">SBUX</a></td>
</tr>
<tr>
<td><span><b>Date of Idea:</b></span></td>
<td>7 November 2023</td>
</tr>
<tr>
<td><span><b>Time Line:</b></span></td>
<td>1 – 6 months</td>
</tr>
<tr>
<td><span><b>Entry Level:</b></span></td>
<td>$104.00</td>
</tr>
<tr>
<td><span><b>Target Level:</b></span></td>
<td>$125.00</td>
</tr>
<tr>
<td><span><b>Position Size for Invest.MT5 Account:</b></span></td>
<td>Max 5%</td>
</tr>
<tr>
<td><span><b>Risk:</b></span></td>
<td>High</td>
</tr>
</tbody>
</table><ul>
<li>The <a href="https://admiralmarkets.com/start-trading/admiral-invest-stocks-and-etfs" target="_blank" rel="noopener">Invest.MT5</a> account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.</li>
</ul><div>
<div data-symbol="SBUX" data-interval="D"></div>
<div>Source: <a rel="nofollow noopener" href="https://www.tradingview.com/" target="_blank"><span>TradingView</span></a>. Past performance is not a reliable indicator of future performance or results.</div>
</div><p><span>All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a </span><a href="https://admiralmarkets.com/start-trading/forex-demo" target="_blank" rel="noopener">demo account</a><span> first to build your knowledge before investing. </span></p><p><a href="https://admiralmarkets.com/instrument/starbucks-corp-sbux" target="_blank" rel="noopener"><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-starbucks-q4-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_Starbucks-4.png" data- data- data-alt="Trade Starbucks" data-height="220" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_Starbucks-4.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_Starbucks-4.png"></source></picture></a></a></p><h2>Starbucks Fiscal Q4 2023 Performance</h2><p>Here are some of the key highlights from the latest fiscal fourth-quarter <a rel="nofollow noopener" href="https://investor.starbucks.com/financial-data/quarterly-results/default.aspx" target="_blank">earnings report</a> from Starbucks: </p><ul>
<li>Earnings per share of $1.06 vs 97 cents expected </li>
<li>Revenue of $9.37 billion vs $9.29 billion expected </li>
<li>Quarterly net income of $1.22 billion, up from $878.3 million a year earlier </li>
<li>Net sales up 11.4% to $9.37 billion </li>
<li>Same-store sales up 8% vs 6.8% expected </li>
</ul><p>Starbucks beat analyst <a rel="nofollow noopener" href="https://www.cnbc.com/2023/11/02/starbucks-sbux-earnings-q4-2023.html" target="_blank">expectations </a>on most metrics with earnings, revenue, sales and consumer traffic increasing. The management team highlighted that most of the growth in sales came from higher footfall in its stores.  </p><p>In Starbucks' second-largest market, China, customer traffic increased 8% but the average price of an order fell 3%. This is a stark contrast from this time last year in which sales in China fell more than 16% due to Chinese Covid restrictions.  </p><p>CEO Laxman Narasimhan <a rel="nofollow noopener" href="https://finance.yahoo.com/news/economy-growing-fastest-rate-3-201349474.html" target="_blank">attributed </a>much of Starbucks' success to a new plan that improved working conditions by improving pay and work hours and replacing old equipment. The plan was to "reinvigorate the partner culture at Starbucks." </p><p>However, while Narasimhan's plan to invest in productivity has started to pay off, much of this may now already be priced into the stock price. The issue now is whether or not customer traffic will continue to increase as we move into the holiday season and people focus on gifts rather than personal discretionary items.  </p><p>There may also be further pain headed for the consumer that will affect Starbucks' revenue. The Federal Reserve has already stated that while interest rates may currently be on hold, there is still scope to increase them in the future. Higher borrowing costs hit consumers hard and the first things to cut back on are items such as coffee.  </p><p>Therefore, it's important to keep abreast of the macroeconomic situation and central bank policy as these have a big impact on consumer behaviour.</p><h2 aria-level="2">Starbucks Stock Forecast – What do the Analysts Say?</h2><p>According to analysts polled by TipRanks for a Starbucks stock forecast in the past 3 months, there are currently 7 buy, 12 hold and 0 sell ratings on the stock. The highest price level for a Starbucks stock forecast is $125.00 with the lowest price target at $98.00. </p><p>The average price target for a Starbucks stock forecast is $111.33.</p><figure><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-starbucks-q4-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/starbucks_stock_price_analyst_forecast.PNG" data- data- data-alt="starbucks stock price analyst forecast" data-height="424" data-width="1163"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/starbucks_stock_price_analyst_forecast.PNG"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/starbucks_stock_price_analyst_forecast.PNG"></source></picture></a>
<figcaption>Source: <a rel="nofollow noopener" href="https://www.tipranks.com/stocks/sbux/forecast" target="_blank">TipRanks</a>, 7 November 2023</figcaption>
</figure><p> </p><h2 aria-level="2"><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-para>An Example Trading Idea for </span><span data-ccp-para>the <span data-ccp-para> Starbucks</span><span data-ccp-para> Stock Price</span></span></span></h2><p>An example trading idea for the Starbucks share price could be as follows:  </p><ul>
<li>Buy the stock on a break above the post-earnings high at $104.00 to allow for volatility. </li>
<li>Target just below the highest analyst price target of $125.00. </li>
<li>Keep your risk small at a maximum of 5% of your total account.   </li>
<li>Time Line = 1 – 6 months  </li>
<li>If you buy 10 Starbucks shares:  
<ul>
<li>If target is reached = $210.00 potential profit [($125.00 – $104.00) * 10 shares].</li>
</ul>
</li>
</ul><p>Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how sensitive Starbucks' share price is to changing consumer behaviour.</p><p>Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.</p><p>With the Admirals <a href="https://admiralmarkets.com/start-trading/admiral-invest-stocks-and-etfs" target="_blank" rel="noopener">Invest.MT5</a> account you can buy and sell US stocks with a commission from $0.02 per share. Buying 10 shares in Starbucks stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.</p><p>There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! </p><h2 aria-level="2"><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-para>How to Buy </span><span data-ccp-para> Starbucks</span><span data-ccp-para> Stock in 4 Steps </span></span><span data-ccp-props='{"201341983":0,"335559738":40,"335559739":0,"335559740":259}'> </span></h2><p><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span>With Admirals, you can buy shares in companies like Starbucks</span><span> with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. </span></span></span></span></span></span></p><ol>
<li><a href="https://admiralmarkets.com/signup" target="_blank" rel="noopener">Open an account</a> with Admirals to access the dashboard.   </li>
<li>Click on Trade on one of your live or demo accounts to open the web platform.   </li>
<li>Search for your stock in the search window at the top right to view the live price chart. </li>
<li>Click Create New Order from the bottom of the screen to open the trading ticket. </li>
</ol><figure><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-starbucks-q4-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/starbucks_monthly_stock_price_chart_admirals_mt5_web_platform.PNG" data- data- data-alt="starbucks monthly stock price chart admirals mt5 web platform" data-height="533" data-width="1100"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/starbucks_monthly_stock_price_chart_admirals_mt5_web_platform.PNG"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/starbucks_monthly_stock_price_chart_admirals_mt5_web_platform.PNG"></source></picture></a>
<figcaption>Source: Admirals <a href="https://admiralmarkets.com/trading-platforms/webtrader" target="_blank" rel="noopener">MetaTrader</a> 5. Starbucks. Monthly. Date: Jan 2018 to Nov 2023, captured on 7 Nov 2023. Past performance is not a reliable indicator of future results or future performance.</figcaption>
</figure><p> </p><p>Click on the banner below to trade Starbucks stock today! ▼▼▼ </p><p><a href="https://admiralmarkets.com/instrument/starbucks-corp-sbux" target="_blank" rel="noopener"><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-starbucks-q4-2023-earnings"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_Starbucks-5.png" data- data- data-alt="Trade Starbucks" data-height="220" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dynamic-images.admiralmarkets.com/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_Starbucks-5.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dynamic-images.admiralmarkets.com/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_Starbucks-5.png"></source></picture></a></a></p><h2 aria-level="2"><span data-ccp-props='{"201341983":0,"335559738":40,"335559739":0,"335559740":259}'><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-para>Do You See </span><span data-ccp-para>the Starbucks Stock Price</span><span data-ccp-para> Moving Differently? </span></span><span data-ccp-props='{"201341983":0,"335559738":40,"335559739":0,"335559740":259}'> </span> </span></h2><p>Remember that all analytics and trading ideas are based on the personal view and experience of the author.</p><p>If you believe there is a higher chance Starbucks share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.</p><p>The <a href="https://admiralmarkets.com/start-trading/account-types" target="_blank" rel="noopener">Trade.MT5</a> and <a href="https://admiralmarkets.com/start-trading/account-types" target="_blank" rel="noopener">Trade.MT4</a> account allows you to speculate on the price direction of stocks and shares using CFDs.</p><p>This means you can trade long and short to potentially profit from rising and falling stock prices.</p><p aria-level="3"><b>INFORMATION ABOUT ANALYTICAL MATERIALS:   </b></p><p>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   </p><ul>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    </li>
</ul><ul>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the <a href="https://admiralmarkets.com/risk-disclosure" target="_blank" rel="noopener">risks involved. </a></li>
</ul>