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business1d ago
Stephanie Link is buying shares of this turnaround story. The comeback could become clear this week
- Stephanie Link endorses Starbucks as a turnaround play, citing early signs of progress under Niccol.
- North America same-store sales were flat in the latest quarter, signaling stabilization after declines.
- International growth showed resilience with 3% growth and China up 2%, supporting the turnaround narrative.
- Profitability could rise to mid-teens margins from about 9%, according to Deutsche Bank's projections cited in the piece.
- Link sees earnings power potentially reaching $3.50 to $4, with a stock multiple around 24 times earnings upon earnings uplift.
- Analysts may re-rate the stock as expectations catch up with Link's view, potentially expanding the multiple.
- The article notes Wall Street remains largely skeptical, providing a potential entry point for investors.
- Niccol is expected to outline a detailed growth plan at an investor day following quarterly results.
- The Green Apron Service is highlighted as a key initiative to speed up delivery and overall service times.
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