Looking for shorts this earnings season? Or simply stocks to stay away from on the long side?
Hedgeye’s Restaurants team is bearish on one well-known company it was bullish on for the better part of a decade: Starbucks (SBUX).
According to Restaurants analyst Shayne Laidlaw, expect sluggish sales in China to weigh on their earnings call scheduled for the first week of November.
“With the slowdown in their ‘growth market’ in China, and a slowdown in the U.S., and some misappropriated capital by management leads us to believe that this is going to be a pretty good short call going into the end of this year and calendar year 2019,” Laidlaw explains in the clip above.
Watch the full video for more.