Down 32%, Is Starbucks Stock Ready for a Turnaround?
Famed coffee chain Starbucks Corporation (NASDAQ: SBUX) recently laid out some ambitious plans at its 2022 Investor Day, detailing a path to grow its bottom line from 15% to 20% annually over the next several years. That should perk up shareholders about its price, which is down 32% from the stock's peak.
But hitting this level of growth could prove harder than it looks; investors should know some notable risks before owning Starbucks stock. Here's what to look for over the next several years and how to determine whether the stock reflects those potential hurdles in its valuation.
Management targets 10% to 12% annual revenue growth over the next several years. This would mean growth accelerated from recent history; the company averaged 9.5% yearly growth over the past decade and just 7.4% over the past five years. In the chart below, you can see this steady slowdown followed by a massive rebound in growth after sales dropped during COVID-19.
Source Fool.com
