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Highlights from the Starbucks China modeling conference call

Published 02/01/2018, 02:32 PM
© Reuters.  Highlights from the Starbucks China modeling conference call
CSGN
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SBUX
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BABA
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  • Credit Suisse (SIX:CSGN) updates on a conference call hosted by Starbucks (SBUX -1.4%) yesterday to discuss China modeling.
  • Call highlights as posted by CS: (1) SBUX East China region comprises 4 of the 10 most affluent cities in China; (2) Shanghai has the highest number of SBUX’s of any city in the world with 600); (3) East China’s store count is only 1/5th the US, but it has ~6.2M My Starbucks Rewards vs. 14.2M in U.S.; (4) mobile ordering makes up ~60% of tender; (5) delivery and mobile order & pay are not yet rolled out in China but were called out as longer-term opportunities.
  • The firm takes its 2018 EPS estimate to $2.45 from $2.42 and 2019 EPS estimate to $2.76 from $2.75.
  • Now read: Starbucks Growth To Be Augmented By Alibaba (NYSE:BABA)


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