Starbucks has surged 150 percent since the March low but does it have more room to run? Matthew DiFrisco, restaurant analyst at Oppenheimer, shared his insights.
“We continue to have an “outperform” on it,” DiFrisco told CNBC.
“Their topline trends show signs [of a turnaround] and commentary from management in the last couple of times they have spoken suggested monthly sequential improvement in the topline, which is bucking the trend than what we’re seeing from casual diners and the 800-pound gorilla in the room, McDonald’s.”
DiFrisco said management at the coffee retailer took aggressive actions to change the company during downturn.
“They really identified their problems early,” he said. “They closed down stores that were underperforming, improved their value proposition and done a good job as far as getting bounce back and getting their core consumers to come back more often.”
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But the economy needs to get better in order for Starbucks to see a continued improvement, said DiFrisco.
“People drink coffee when they go to work so more workers and improvement in the numbers of those employed will be a benefit to Starbucks,” he said.
DiFrisco does not own any shares of Starbucks.
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