Restaurants taking hint from customers’ obsession with ‘secret’ food items
Traditional items on the food menu may get boring after a while. That's why customers show a propensity for ordering ‘secret’ items on menus, which in reality just means personalizing the food or drink by scrambling the ingredients. This is not so much of a secret, as restaurants have started adding these items with a fun nickname that takes on a new level of appeal among customers.
Consumer behavior experts believe that people love secrets as they make them feel powerful and superior that the usual mass. This applies to food as well, and if a customized product becomes too popular, it is possible that it will soon find its way to the official menu.
Though this may also mean that the secrecy is lost, but it gives birth to new products with improved value. Here are some examples of restaurants taking the hint:
Starbucks’ (SBUX) ‘Dragon Drink’ that basically replaces water with coconut milk in the much popular pink colored Strawberry Acai Refreshers. McDonald’s (MCD) Triple Breakfast Stacks that became popular after customers tweaked traditional menu items to build the super-sized sandwiches. In-N-Out Burger’s not-so-secret-anymore 4x4 Quad Quad, a burger with four beef patties, that now appears on the restaurant’s website. Finally, Chipotle Mexican Grill’s (CMG) Mexican entrée, quesadillas, has put long rumors to rest when the company made this item readily available on the children’s menu.
SBUX's Indicator enters downward trend
The Aroon Indicator for SBUX entered a downward trend on June 02, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 136 similar instances where the Aroon Indicator formed such a pattern. In of the 136 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 19, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on SBUX as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SBUX turned negative on May 03, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
SBUX moved below its 50-day moving average on May 22, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SBUX crossed bearishly below the 50-day moving average on May 24, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBUX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SBUX's RSI Oscillator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SBUX advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .
SBUX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (8.694). P/E Ratio (32.258) is within average values for comparable stocks, (163.145). Projected Growth (PEG Ratio) (1.374) is also within normal values, averaging (2.118). Dividend Yield (0.021) settles around the average of (0.032) among similar stocks. P/S Ratio (3.373) is also within normal values, averaging (50.707).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. SBUX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a producer of coffee and tea
Industry Restaurants
SBUX and
Correlation & Price change
A.I.dvisor indicates that over the last year, SBUX has been closely correlated with YUM. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if SBUX jumps, then YUM could also see price increases.
| Ticker / NAME | Correlation To SBUX | 1D Price Change % | ||
|---|---|---|---|---|
| SBUX | 100% | +2.03% | ||
| YUM - SBUX | 68% Closely correlated | +1.72% | ||
| DRI - SBUX | 60% Loosely correlated | +1.43% | ||
| SHAK - SBUX | 54% Loosely correlated | +1.55% | ||
| EAT - SBUX | 54% Loosely correlated | +4.72% | ||
| TXRH - SBUX | 53% Loosely correlated | +1.96% | ||
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