BTIG remains Buy-rated on Starbucks, says turnaround taking longer

BTIG notes that Starbucks (SBUX) announced it will be closing several hundred locations in North America as the next part of its turnaround efforts, and a further reduction in corporate staff. The store closures, which should be completed over the next several days, seem roughly in-line with investor expectations, representing about 4.5% of the company-owned North American portfolio. The firm remains Buy-rated with a $105 price target but acknowledges the turnaround here is taking longer than it initially anticipated. BTIG is encouraged by the longer-tail portfolio restructuring and further cost reductions, and we eagerly await a return to positive transaction counts in the U.S. as the ultimate catalyst.