Starbucks (NASDAQ: SBUX) indicated plans to close 600 unprofitable domestic stores and incur pre-tax charges of $328-$348 million, including asset write-downs of $200 million.
Deutsche Bank says: "With US consumers still reeling and McDonalds (NYSE: MCD) on the cusp of a nationwide specialty coffee rollout, it is too early to call a bottom on fundamentals – maintain Hold."
SBUX July option implied volatility of 42 is near its 26-week average of 39 according to Track Data, suggesting non-directional price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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Reader Comments (Page 1 of 1)
7-02-2008 @ 12:08PM
Sycamore Fan said...
Call me boring. Call me traditional. But I like a regular cup of coffee (which Starbucks does sell). Does that Organic Sumatra-Peru Blend taste great? Probably. Is it worth four bucks? Maybe once in a while.
And while the puns are potentially endless on this post (Starbuck-less. Falling Starbucks. Better latte, then never), what's not funny is the fallout from the current economic woes.
Suddenly, there's competition for those barely above minimum wage fast food, retail, and low-skill factory jobs. And the people competing for those jobs may be folks whose white-collar job is gone, and they need something - anything - to get by.
http://40-year-oldblog.blogspot.com/