Trying to get “…meaningful moments of joy and connection…” out of a place like coffee giant Starbucks (SBUX), can be a challenge. But that is the current plan, as explained by Bhagyesh Phanse, Starbucks’ chief data and analytics officer. Seeing how that connection is made, or at least attempted, is quite a step in and of itself. Investors, meanwhile, seem like they want to be convinced, as evidenced by the fractional rise in Starbucks shares in Thursday afternoon’s trading.
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Phanse’s plan to make a Starbucks experience better with data calls on three key aspects to drive it: getting better data and learning how to best use it, improving analytics and data science use, and building on AI adopting that reflects “…ways that are responsible, human-centered, and aligned with Starbucks values.”
Phanse elaborated, noting, “We operate at the intersection of two rapidly evolving spaces: technology and consumer retail. That makes our work both dynamic and deeply relevant, requiring us to move at the pace of innovation while staying grounded in the needs of our partners and customers. Data and AI will be foundational to how we scale innovation, empower our partners, and deliver the elevated experiences our customers expect.”
Jim Cramer Asks a Telling Question
Then, in a move that gives me a whole new respect for CNBC mainstay Jim Cramer, Cramer asked a rather pointed question: “Do you think it’s possible when Brian (Niccol) came in he may not have realized how broken Starbucks really was?”
Things are absolutely starting to look up for Starbucks. It just came off an amazing week of sales. Its China business is looking like an easy sell. The Back To Starbucks plan is meeting some friction in contact with reality, but does have some useful ideas embedded in it. So while some are selling off their Starbucks shares now, others are doing so with an eye to getting back in. Though that point, Cramer acknowledged, may be tougher to spot than some may think.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, eight Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 16.52% loss in its share price over the past year, the average SBUX price target of $101.59 per share implies 22.6% upside potential.
