Starbucks As a Macro Play?

10/31/12 03:11PM EDT

Starbucks releases its earnings tomorrow, and our Restaurant sector research team expects the company to report a shortfall versus both sales and earnings estimates for the quarter.

As the chart below suggests, Starbucks sales are highly levered to employment and the overall health of the economy. Industrial production is a good proxy for the overall health of the US economy.

Starbucks As a Macro Play? - star

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.