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May 04, 2020
Starbucks (SBUX, $71.99) get credit rating downgrade to BBB from Fitch

Starbucks (SBUX, $71.99) get credit rating downgrade to BBB from Fitch

Starbucks  received a credit rating downgrade from Fitch Ratings to BBB (the second lowest investment-grade rating) from BBB+. Fitch also mentioned a negative outlook on the coffee chain, which implies a potential further downgrade.

The downgrade followed Starbucks’ proposal for $3 billion of unsecured notes, which creates a “higher leverage profile” for Starbucks according to Fitch.

Fitch also mentioned that Starbucks’ fiscal second quarter earnings came in worse than expected amid the coronavirus pandemic.

Related Ticker: SBUX

SBUX sees MACD Histogram crosses below signal line

SBUX saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 20, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 52 instances where the indicator turned negative. In of the 52 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on May 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SBUX as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

SBUX moved below its 50-day moving average on June 01, 2026 date and that indicates a change from an upward trend to a downward trend.

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 Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 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 305 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.

The Aroon Indicator entered an Uptrend today. In of 183 cases where SBUX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Fundamental Analysis (Ratings)

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 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 slightly 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 (5.512). P/E Ratio (73.198) is within average values for comparable stocks, (38.137). Projected Growth (PEG Ratio) (1.276) is also within normal values, averaging (1.600). Dividend Yield (0.026) settles around the average of (0.030) among similar stocks. P/S Ratio (2.845) is also within normal values, averaging (1.824).

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 steady price growth. SBUX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SBUX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.

Notable companies

The most notable companies in this group are McDonald's Corp (NYSE:MCD), Starbucks Corp (NASDAQ:SBUX), Yum! Brands (NYSE:YUM), Chipotle Mexican Grill (NYSE:CMG), Darden Restaurants (NYSE:DRI), Yum China Holdings (NYSE:YUMC), Dominos Pizza Inc (NASDAQ:DPZ), Shake Shack (NYSE:SHAK), Noodles & Co (NASDAQ:NDLS).

Industry description

The industry includes companies that operate full-service restaurants, fast food restaurants, cafeterias and snack bars. McDonald`s Corporation, Starbucks Corporation, YUM! Brands, Inc. and Restaurant Brands International Inc. are some of the largest U.S. restaurant-owning companies in terms of market capitalization. While restaurant spending could be viewed as discretionary for consumers, some companies in the business have been able to weather economic cycles by establishing strong loyalty among customers over the years. Many of them also have a strong global presence as well.

Market Cap

The average market capitalization across the Restaurants Industry is 9.87B. The market cap for tickers in the group ranges from 2.74K to 194.17B. MCD holds the highest valuation in this group at 194.17B. The lowest valued company is BFICQ at 2.74K.

High and low price notable news

The average weekly price growth across all stocks in the Restaurants Industry was -5%. For the same Industry, the average monthly price growth was -4%, and the average quarterly price growth was -9%. CHSN experienced the highest price growth at 20%, while VSTD experienced the biggest fall at -35%.

Volume

The average weekly volume growth across all stocks in the Restaurants Industry was 14%. For the same stocks of the Industry, the average monthly volume growth was 31% and the average quarterly volume growth was 31%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 45
P/E Growth Rating: 61
Price Growth Rating: 60
SMR Rating: 68
Profit Risk Rating: 88
Seasonality Score: 8 (-100 ... +100)
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a producer of coffee and tea

Industry Restaurants

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Industry
Restaurants
Address
2401 Utah Avenue South
Phone
+1 206 447-1575
Employees
381000
Web
https://www.starbucks.com
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