Why You Should Buy Starbucks Before the Earnings Release
After losing almost 40% of its price in the March crash, Starbucks (NASDAQ: SBUX) stock turned positive year to date just last week. Revenue is steadily improving, and the company beat on sales and earnings in its most recent quarterly report. Since then, the company has continued to modify its model to meet current consumer behaviors, and numbers are likely to look good in the fourth-quarter report, which will be released on Oct. 29. Let's take a deeper look at why now's the time to buy.
Starbucks launched a new loyalty program in September, and this small change can be a game changer for the company. It's had a rewards program since 2008 when it brought out prepaid loyalty cards, that developed into the improved program in which customers could get stars when loading cash into the Starbucks app. Alternatively, they could use a prepaid Visa (NYSE: V) card. Starbucks revamped the program, and it now offers the option to load a credit or debit card or certain mobile wallets into the app and then scan it to pay.
Image source: Starbucks.
Source Fool.com
