Editor's Note: Below is an institutional research note written by Restaurants analysts Howard Penney and Shayne Laidlaw.
Takeaway: We are covering our SHORT on SBUX
By any measure, 3Q19 was an incredible quarter for Starbucks, with the company generating positive traffic in the Americas for the first time since 4Q17. The Americas same-store sales of 7%, with 3% traffic is a major shift in trend. This momentum is not likely to change over the next few quarters. I don’t need to belabor my epic fail with this call, but it’s time to move on from being critical of the CEO and this amazing company!