Arabic version: تعافي ستاربكس يدعم اقتراح استراتيجية خنق قصير

According to Cnbc, Starbucks’ recovery plan is showing signs of progress as the company works to improve the in-store experience under chief executive Brian Niccol. The report says stores had become less distinctive as mobile ordering accelerated, with longer lines, dirtier locations and overwhelmed baristas. Recent visits cited in the report found employees becoming friendlier and more engaging.

Starbucks shares have risen 12% this year, although they remain well below recent highs and have delivered little movement over the last five years, the report said. Starbucks expanded from 700 stores in the mid-1990s to 16,000 today. The company’s earlier appeal was built around offering customers a brief break from an urban setting, with features such as sandstone floors, comfortable chairs and Wi-Fi.

The recovery effort faces a valuation challenge. Consensus forward adjusted earnings per share are about $3.12, placing the stock at roughly 30 times forward earnings, according to the report. Its enterprise value is estimated at 17.6 times forward EBITDA, compared with an industry average of about 12 times. The report said the April finalization of a divestiture of 60% of China retail operations strengthened financial flexibility and could support future buybacks alongside dividend commitments.

The proposed options strategy is to sell one November $85 put and one November $105 call for a net credit of $2.25. The approach is based on implied volatility averaging above realized volatility during the past two years, suggesting options premiums have been expensive relative to the stock’s actual moves. If the stock stays where it is, the strategy would yield a 16% annualized return, the report said. Risks include being short at $107.25, 13% above the current price, or long at $82.75, 12% lower.