Starbucks Corporation (SBUX) recently announced that its chief operating officer (COO), Troy Alstead, who has been with the company for 23 years, will go on an indefinite unpaid leave from March to spend time with his family.
Starbucks did not mention when Alstead — who will serve as the COO till Mar 1, 2015 — will rejoin.
Alstead has served as Starbucks’ chief financial officer and also led operations and development of Starbucks international business and its Europe, Middle East and Africa business unit.
The U.S. coffee chain stated that Alstead and Chief Executive Officer Howard Schultz will provide further details during the first-quarter fiscal 2015 earnings call to be held on Jan 22.
In the first quarter, adjusted earnings per share are expected in the range of 79–81 cents, representing 14–17% growth. The Zacks Consensus Estimate stands at 80 cents.
The first-quarter earnings growth rate is lower than the full-year target (16–18% increase) due to higher marketing investments incurred for the holiday season, costs related to the October leadership conference and ongoing employee investments.
Management expects to record a gain of $325 to $375 million after-tax or 43–49 cents per share in the to-be-reported quarter in relation to the Starbucks Japan acquisition.
Starbucks plans to take full ownership of its Japanese joint venture (JV) — Starbucks Coffee Japan, Ltd. — in a deal valued at around $914 million.
The company plans to purchase the remaining 60.5% share of Starbucks Japan in two stages. In the first stage, Starbucks purchased 39.5% controlling interest from Sazaby for about $505 million in October, bringing its total ownership in the JV to a controlling 79% interest. In the second stage, the remaining 21% equity stake owned by public shareholders will be purchased by the coffee company for about $408.5 million by the second quarter of 2015.
Stocks to Consider
Starbucks carries a Zacks Rank #3 (Hold). Better-ranked restaurateurs include Red Robin Gourmet Burgers Inc. (RRGB), Domino's Pizza, Inc. (DPZ) and BJ's Restaurants, Inc. (BJRI). While BJ's Restaurants sports a Zacks Rank #1 (Strong Buy), Domino's Pizza and Red Robin have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment