Today’s Research Reports on Stocks to Watch: Starbucks and Tyson Foods
Both Starbucks and Tyson Foods were in the red on Tuesday. Starbucks announced it would be cutting many corporate jobs while Tyson Foods reported fourth quarter financial results that missed on revenues.
RDI Initiates Coverage on:
Tyson Foods, Inc.
Starbucks Corporation shares closed modestly in the red on Tuesday on about 13.5 million shares traded. First reported by the Wall Street Journal, the coffee giant is planning to lay off approximately 5 percent of its global corporate workforce, according to a memo sent by CEO Kevin Johnson. In the memo the CEO wrote that around 350 employees in marketing, creative, product, technology and store development would be affected. Separately Johnson spoke with CNBC’s Jim Cramer about the U.S./China trade war and said that the company isn’t feeling a negative impact but isn’t fully immune. Johnson said, "We really built Starbucks in China for China. It really is operating as an entity in China that is relevant to the consumer, to the culture." He added, "We think we’ve got one of the world’s most admired and trusted brands, and we’ve got the right strategy to really drive the growth agenda here over the next several years."
Access RDI’s Starbucks Corporation Research Report at:
Tyson Foods, Inc. shares closed down 5.58% on about 7.8 million shares traded on Tuesday. The company reported fourth quarter results that missed what analysts were expecting for revenue. "We are not currently shipping product to China – beef, pork or poultry," said new Chief Executive Noel White. "So if there is any change, that would provide upside export potential for us." Sales saw a drop of 1.4 percent to $10 billion. Analysts were waiting for $10.26 billion. Earnings at $1.58 per share was however ahead of the $1.35 analysts waited for. White said on the earnings call, "It’s my pleasure to join you today on my first earnings call as CEO of Tyson Foods. I’m honored to be in this role and I’m energized by the many opportunities ahead for this great company." He also said, "Our algorithm for growth continues to be 3% value-added sales growth and a high single-digit EPS growth annually over time. Our 2018 value-added growth of 4.2% exceeded our goal. EPS was $6.16, an increase of 16% over last year, including $0.78 from tax reform. We exceeded our revised guidance due to the strong finish in the fourth quarter in the beef and pork segments."
Access RDI’s Tyson Foods, Inc. Research Report at:
Our Actionable Research on Starbucks Corporation (NASDAQ: SBUX) and Tyson Foods, Inc. (NYSE: TSN) can be downloaded free of charge at Research Driven Investing.
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