We're raising our fair value estimate to $234 per share for the wide-moat fast food company.
We anticipate raising our Starbucks fair value estimate to $109 from $107 prior, on operational improvements, an impressive ability to defray inflationary pressure, and sustained strength in consumer-packaged goods.
The firm's U.S. market, boosted by stimulus spending and February's chicken sandwich launch, healthily exceeded 2019 levels on a two-year stacked basis.
Strength in the U.S. market was encouraging, and we modestly raise our fair value estimate.
As restrictions ease, we expect a sharp jump in demand.