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Starbucks stock plunges nearly 35% in the past year. Time to grab this coffee? Let's find out!

Value Investor Daily provided the statistics used here. Subscribe to their newsletter below for more up-to-date insights.

Management launched a reinvention strategy in 2022 with initiatives including:

• Doubling global rewards members to 75 million

• Growing store count to 55,000 (up from 38,000 today)

• Implement $3 billion of cost savings over three years.

2024 management guidance includes 4-6% comp growth, 7% store growth, 7-10% revenue growth, and 15-20% EPS growth.

Based on these assumptions of 12% EPS growth, 4% terminal growth, and a 9% discount rate, the once-overvalued stock now appears undervalued.

As a great investor, this is what you love to see—revenues up, stock price down.

That’s it for today, but lots more to come. Thanks for reading once again!

Chloe Lin
Arigato Investor