- RBC Capital has downgraded its rating on Starbucks (NASDAQ: SBUX) to “Sector Perform” from “Positive.”
- Despite the downgrade, Starbucks is aggressively pursuing global expansion, aiming to double its 22,000 international stores and add 5,000 more in the U.S.
- The company’s market capitalization stands at approximately $112.56 billion, with its stock price recently at $98.76.
RBC Capital downgrades its rating on Starbucks (NASDAQ: SBUX) to Sector Perform from a previous Positive rating. Starbucks is a global company that operates a large chain of coffeehouses. A “Sector Perform” rating suggests analysts expect the stock to perform in line with the average returns of its industry peers.
The stock price was $98.76 at the time of the downgrade. Starbucks has a current market capitalization of approximately $112.56 billion. Market capitalization is the total market value of a company’s outstanding shares and is used to measure a company’s size. The stock recently saw a positive change of $1.35, an increase of 1.39%.
Despite the rating change, the company is focusing on expansion. At the Evercore Consumer and Retail Conference, CEO Brian Niccol stated that the 22,000 stores outside the United States could potentially double. This signals a strong focus on international growth for the coffee chain.
In addition to global plans, Starbucks sees domestic opportunities. The company believes it can add at least 5,000 more stores in the US. As highlighted by Bloomberg News, Starbucks is also weighing options for its Japanese business, which could include selling a stake in the unit.
The stock has fluctuated between a day low of $96.90 and a day high of $99.56. Over the past year, the stock’s price has ranged from a low of $77.99 to a high of $108.88. The daily trading volume for Starbucks is over 8.6 million shares.
