Starbucks (SBUX), Green Mountian (GMCR) Stocks React to Nielson Data

December 4, 2013 1:59 PM EST
Get Alerts SBUX Hot Sheet
Price: $57.59 -0.52%

Rating Summary:
    28 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Starbucks (NASDAQ: SBUX) pod share grew over the past 4-weeks, but momentum decelerated, noted analyst Bonnie Herzog of Wells Fargo, citing Nielson data. Green Mountains (Nasdaq: GMCR) share remained stable.

"SBUX pod share was 14.5% this period - up from 13.4% last period but slightly lower than LY. GMCR pod share remained stable over the last period at 42.0% - vs. 52.5% LY. SBUX's pod relative price gaps declined slightly, which may have been a driver behind the strong 37% pod unit growth for SBUX – accelerating from 23.5% last period," said Herzog.

"Overall, the pod category's growth continues to be strong but gradually decelerating, with $ sales up +35.8% vs. +77.4% LY and unit growth up +44% vs. +77.1% LY. Category pricing declines continue to accelerate, down -5.7% this period – vs -4.6% last period and +0.1% LY). Both GMCR and SBUX's pricing outpaced the category, down only -5.2% and -3.4%, respectively. Private label (PL) pods' pricing also decreased -4.3%, however this was not enough to drive PL $ share gains (PL share was 8.4% vs. 8.8% last period) or unit share gains. Relative pod price gaps to SBUX pods have remained stable for the past year, and are virtually unchanged vs. last period or LY. We believe relative price gaps should remain stable over time as the category continues to mature," she added.

Wells Fargo has a Outperform rating on Starbucks (NASDAQ: SBUX) with a price target of $74-$76.

For an analyst ratings summary and ratings history on Starbucks click here. For more ratings news on Starbucks click here.

Shares of Starbucks closed at $80.55 yesterday.

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