Nasdaq’s Bear Market: Starbucks is holding up 

سوق ناسداك الهابطة 


Nasdaq’s Bear Market: Starbucks is holding up, The Nasdaq Composite is down 34% so far this year, and many experts are predicting a recession in the near future.


Top consumer Brand
Starbucks (NASDAQ: SBUX)
The Bright Side of a Recession
The Power of Starbucks’ Brand






Top consumer brand


This has led to a lot of pressure on asset prices, and interest rates are rising quickly to curb inflation. However, there are still opportunities for traders and investors who are willing to take on some risk. For example, commodities like gold and silver have been outperforming the stock market this year, so there may be opportunities in those markets. There may also be opportunities in sectors that tend to do well during recessions, such as healthcare and consumer staples. So even though the overall market is struggling right now, there are still chances for profit if you know where to look.



Starbucks (NASDAQ: SBUX)


Is one of the top consumer brands and it has not been spared in the recent downdraft. Its shares are down 22%. However, investors shouldn’t run for the exits and wait for stock prices to start rising again before buying. Now could be an opportune time to get in on this top restaurant stock.

The company’s fundamentals remain strong with same-store sales growth of 4% last quarter.
Starbucks also continues to expand its store base globally which should drive long-term growth. And despite the recent selloff, Starbucks’ shares still trade at a premium valuation relative to other restaurant stocks.

Starbucks is the undisputed king of coffee. The company has a global footprint of 35,711 total stores and generates a record $32.3 billion in revenue in fiscal 2022 (ended Oct. 2). Customers can choose from numerous cheaper options to get their caffeine fix, but Starbucks reigns supreme. The company has become ubiquitous and its premium product is sought after by customers around the world.





The Bright Side of a Recession


The effects of economic recessions on coffee companies like Starbucks.
As many of you know, we are currently in the midst of an economic recession.
This has caused many people to tighten their budgets and cut back on non-essential spending.
This includes things like buying coffee from Starbucks.

While this may seem like bad news for companies like Starbucks, there is actually a silver lining.
In a recession, people tend to drive and travel less.
This means that they have fewer opportunities to stop by a Starbucks location and purchase coffee.
However, those who do still purchase coffee from Starbucks are more likely to do so because they view it as a treat or luxury item rather than an everyday necessity.
So while the number of purchasers may go down in a recession,
the average spend per customer may actually go up!

This is good news for traders and investors in Starbucks stock because it shows that even during tough economic times,
People are still willing to spend money on quality coffee products.



The Power of Starbucks’ Brand


it’s important to understand the power of branding.
And there’s no company that exemplifies this better than Starbucks.
Starbucks has been able to create consumer habits around its products that are extremely difficult to break.
In its most recent fiscal quarter (Q4 2022), Starbucks saw revenue and same-store sales jump 3% and 7%, respectively, on top of the remarkable growth registered in Q4 2021.

This is a company with a very strong brand that continues to perform well regardless of economic conditions.
So, if you’re looking for a safe investment with the potential for long-term growth,
Starbucks is definitely worth considering!

The coffee giant Starbucks has seen better days. In its latest quarter,
same-store sales fell 16% year over year in China—its fastest-growing market.
This can be attributed to pandemic-related lockdowns that have crushed the business in the world’s most populated country.

Despite these disappointing results, the leadership team is still very bullish on China’s potential.
“In China, we will continue to rapidly expand our store footprint, with approximately 13% growth expected in the fiscal year 2023,” CFO Rachel Ruggeri said on the Q4 2022 earnings call.

Starbucks was able to post a solid quarter despite uneven results in its two most important markets (the U.S and China). Looking ahead, management remains optimistic, expecting fiscal 2023 revenue to rise 11% (at the midpoint),
with earnings per share forecast to increase from 15% to 20%.
So, if you’re looking for a top restaurant stock to buy, Starbucks is worth considering even after its recent pullback.