Starbucks Earnings: Will They Deliver or Disappoint?

STRABUCKS EARNINGS: WILL THEY DELIVER OR DISAPPOINT?

Starbucks is set to release its earnings today after the market closes, and all eyes are on the coffee giant. The company’s last earnings report showed a 20% dip, but the stock has rebounded strongly, gaining 40% since the correction. The question now is: Can Starbucks deliver solid results, or will it miss expectations again?

Known as the premium name in coffee, Starbucks has not only built a loyal customer base but also a strong brand reputation. As of 2024, Starbucks holds the title of the world’s most valuable restaurant brand for the eighth consecutive year, thanks to a 14% increase in brand value to $60.7 billion, according to Brand Finance. This recognition solidifies Starbucks’ status as a top-tier company, but the bigger question for investors is whether it’s time to add SBUX to their portfolios.

While SBUX currently trades at a premium, here are some trading strategies to consider ahead of the earnings report:

Trading Strategies for SBUX Earnings

1. For Those Looking to Trade Post-Earnings

If you prefer to wait for the dust to settle after the earnings release, consider these options:

• Bearish Outlook: Place a 110/115 Vertical Call Spread to capitalize on stagnation to correction.
• Bullish Outlook: Place a 70/65 Vertical Put Spread to benefit from a downside move.

2. For Those Wanting to Own SBUX Stock If Earnings Disappoint

If you’re bullish on Starbucks long-term and willing to buy on a dip, this strategy may work for you:

• Sell Cash-Secured Puts at $80 or Below: This approach allows you to collect premium while positioning for an entry at a lower cost basis if the stock pulls back.

Whether Starbucks delivers a blowout quarter or a disappointing miss, the company remains a powerhouse in the restaurant and coffee space. As an investor, aligning your strategy with your outlook on the stock can help you navigate the post-earnings action effectively.

Do you think Starbucks is a buy? Share your thoughts in the comments!

Disclaimer

This is not financial advice. Please do your research or consult a financial advisor before making investment decisions.