Starbucks Soars 25%: Do You Believe in Investing in People or Data?

Tiger_comments
08-14

On August 13th, $Starbucks(SBUX)$ surged by 25%, pushing its total market value above $100 billion.

The primary reason for the stock's significant rise is Starbucks' announcement that Brian Niccol will be appointed as Chairman and CEO, starting his new role on September 9, 2024.

Who is Brian Niccol? Why did he bring a 25% rise in a single day?

Brian Niccol is currently the Chairman and CEO of $Chipotle Mexican Grill(CMG)$, a publicly traded multinational restaurant chain in the U.S., with 3,500 restaurants as of June 30, 2024.

Under his leadership, Chipotle's revenue nearly doubled, profits increased by nearly sevenfold, and its stock price soared by almost 800%.

During his tenure, Brian "transformed Chipotle" by focusing on talent and culture, brand and menu innovation, operational excellence, and digital transformation, setting new industry standards. He also raised wages for retail team members, enhanced benefits, and strengthened corporate culture.

Yesterday's surge indicates that the market highly values this CEO's ability to lead and transform a company.

Do you invest in people or data?

Investing in $Tesla Motors(TSLA)$ and $NVIDIA Corp(NVDA)$ may also imply a strong belief in the capabilities of their CEOs.

  • Even though Tesla's stock once fell to $135 this year, Elon Musk managed to pull it back above $200 with expectations around FSD (Full Self-Driving) and robotaxi.

  • Jensen Huang, with his remarkable foresight, led Nvidia to capitalize on every major trend in the stock market.

If you focus more on data, you might be more concerned with a company's valuation and excel at buying undervalued companies.

What’s your investing style?

Do you invest in people or data?

Do you believe in Brian’s ability in boosting $Starbucks(SBUX)$ stock prices?

What’s your target price for $Starbucks(SBUX)$?

Leave your comments and also post to win tiger coins~

# Should We Take CEO Buying/Selling Seriously?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment（20）

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  • AliceSam
    ·08-14
    在他的领导下，Chipotle的营收增长近一倍，利润增长近7倍，其股价暴涨近800%。
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  • Emotional Investor
    ·08-14
    To me its about people, without amazing people then the data won’t be used to the max
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  • 爱上投资学
    ·08-14
    先前的股价有被低估
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  • 紫南
    ·08-14
    还是相信人吧！人创造数据，数据创造不了人！
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  • TimothyX
    ·08-14
    布萊恩·尼科爾(Brian Niccol)現任董事長兼首席執行官$Chipotle墨西哥燒烤店(CMG)$是一家在美國上市的跨國連鎖餐廳，截至2024年6月30日擁有3,500家餐廳。

    在他的領導下，Chipotle的營收增長近一倍，利潤增長近7倍，其股價暴漲近800%。

    在任職期間，Brian通過專注於人才和文化、品牌和菜單創新、卓越運營和數字化轉型，“改變了Chipotle”，樹立了新的行業標準。他還提高了零售團隊成員的工資，提高了福利，並加強了企業文化。

    昨天的飆升表明市場高度評價這位首席執行官領導和改造公司的能力。

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  • highhand
    ·08-14
    invest in the fundamentals of company based on track record like top and bottom line growth over last 5 years. CEO does not need to be a superstar but he cannot be too bad. Starbucks CEO was probably considered bad, that's why stock spike. ultimately the best companies to invest in are those that do not rely on superstar CEOs to have consistent growth. boring is good in that sense as long as fundamentals are solid.
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  • MilkTeaBro
    ·08-14
    Invest in people. The integrity management team has a high likelihood to create wealth for shareholders in long term.
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  • WanEH
    ·08-14
    我个人不觉得换了一个CEO就真的可以扭转星巴克的处境。感觉只是股价死猫反弹。后续还要看接下来业绩有没有改善。
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  • MHh
    ·08-14
    TOP
    Both people and data are important and interlinked. Good leadership can generate profits and what is undervalued can be even more undervalued when the profits rose. On the other hand, even if the stock is cheap, with bad leadership, the stock price can sink even more. So, we want good stocks at cheap or right valuation so that we can make money.


    Based on past performance, I thinking everyone at Starbucks is anticipating Brian to repeat his performance at Starbucks and boost the profits and ultimately the stock price. If he is successful and there is no recession that force people to cut back on what can be considered a lifestyle extravagance, I believe Starbucks stock price should have no problems hitting $120.

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  • Success88
    ·08-14
    Yes $Starbucks(SBUX)$ coffee still needed for everyday essentials. I can believe in this coffee store @Tiger_comments
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  • MicroStrategist
    ·08-14
    Invest in coffee ☕️
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  • nomadic_m
    ·08-15
    Data is only as good as the people behind it. Talent trumps numbers. Brian Niccol's Chipotle turnaround expertise could brew a comeback for Starbucks, but his success hinges on navigating the brand's distinct hurdles. We'll be monitoring his vision, leadership, and execution to gauge the impact on $Starbucks(SBUX)$ stock.
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  • icycrystal
    ·08-15

    people or data, lots of information can be obtained. though data can be manipulated by people.

    still, how well the company performs will depend on the strategies the management employs... and shall wait and see if Brian can take $Starbucks(SBUX)$ to the next level...

    @Universe宇宙 @LMSunshine @Aqa @koolgal @Shyon @GoodLife99 @HelenJanet @TigerGPT @rL @SPACE ROCKET

    What’s your investing style?


    Do you invest in people or data?


    Do you believe in Brian’s ability in boosting $Starbucks(SBUX)$ stock prices?


    What’s your target price for $Starbucks(SBUX)$?


    Leave your comments and also post to win tiger coins~

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  • 第N次大变革大分流
    ·08-17
    这位墨式烧烤的CEO本身就是数据，他带领Chipotle的业绩翻了10倍，然后看看被炒掉的星巴克CEO，他在Starbucks上任两年，业绩停滞不前，护城河不断被侵蚀。
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  • Universe宇宙
    ·08-17
    @TigerGPT what is the lowest and highest target price for $Starbucks(SBUX)$
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    • TigerGPT: 

      Based on the valuation analysis, the lowest target price for Starbucks (SBUX) is $77.0, while the highest target price is $120.0. Please note that these target prices are provided by analysts and may vary over time.

      As for the earnings forecast, for the fiscal year 2024, Starbucks is expected to have an EPS (earnings per share) of $3.56 and a gross income of $36.51 billion. For the fiscal year 2025, the forecasted EPS is $3.97, and the gross income is projected to be $39.02 billion. For the fiscal year 2026, the forecasted EPS is $4.47, and the gross income is projected to be $42.15 billion.

      Regarding the capital flow analysis, on August 13th, there was a significant capital inflow of 683,909.3 thousand units (K) into Starbucks stock. However, it's important to note that capital flow data can fluctuate over time.

      In terms of trend analysis, the support price for Starbucks on August 16th was $91.45, and the resistance price was $94.85. The average cost on August 16th was $90.6. As of August 17th, the stock price of Starbucks is $94.81.

      Lastly, according to the valuation analysis, 30 analysts have provided target price estimates for Starbucks. The mean target estimate is $94.37067. However, it's important to consider that analyst recommendations and target prices are subjective and can vary among different analysts.

      Please note that the information provided above is for reference purposes only and should not be considered as investment advice. It's always recommended to conduct thorough research and analysis before making any investment decisions.

      08-17
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  • Shyon
    ·08-21
    My investing style is analytical and data-driven. I prioritize evaluating financial data, market trends, and economic indicators to inform investment decisions. This approach focuses on objective data rather than personal assessments of individual abilities.

    Regarding Brian’s ability to boost Starbucks ($SBUX) stock prices, the impact of a new leader or executive can be significant, depending on their track record and strategic vision. If Brian is a new or influential leader at Starbucks, his effectiveness would depend on his experience, strategies for growth, and ability to execute plans successfully. Evaluating his past performance and the company’s strategic direction under his leadership would be essential in assessing potential stock price impacts.

    Anyway, I trust Brian and I strongly believe the management does the same too, that's why they hire him, no? 😂 @Tiger_comments

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  • KarenAldridge
    ·08-14
    Data vs.
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  • Jolenechl
    ·08-14
    Yes
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