S&P shifts Starbucks view to stable

S&P said it revised Starbucks Corp.’s outlook to stable from negative and affirmed its BBB+ issuer rating.

“Strengthening economic conditions and ongoing execution of traffic-driving initiatives are fueling Starbucks' recovery. Consumer sentiment is rising amid stronger labor market conditions, unprecedented fiscal stimulus, and accelerating economic growth. Starbucks' sales in the U.S., its largest market, have fully recovered since the start of the Covid-19 pandemic; comparable store sales grew 9% during the most recent quarter,” the agency said in a press release.

S&P said it forecasts sales leverage and margin enhancements will push free-cash-flow generation beyond $3.5 billion forcing leverage below 3x this year.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.