Starbucks should spin off its China business, Bank of America says

) should consider spinning off its China business due to its volatility, lower profitability, and slower growth compared to other markets.

The analysts note that Starbucks remains well-positioned in China, but the overall market growth has slowed.China’s GDP growth, which is closely correlated with Starbucks’ performance, has been sluggish, and deflationary pressures have resulted in negative ticket growth. In addition, BofA says while coffee consumption is on the rise, it remains low compared to other Asian markets like Japan.

Moreover, they explain that this strategy would allow Starbucks management, particularly new CEO Brian Niccol, to concentrate on the U.S. market, which accounts for 73% of its 2023 EBITDA before corporate expenses.

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Bank stock woes hold back the overall market, but Starbucks' new CEO is full steam aheadEvery weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
Fuente: CNBC - 🏆 12. / 72 Leer más »

Ride out future market and economic volatility with these all-weather stocks, Bank of America saysInvestors may want to keep an eye on these stocks to ride out any future market volatility, according to Bank of America.
Fuente: CNBC - 🏆 12. / 72 Leer más »

Bank of America likes these solid dividend-paying stocks for AugustInvestors should look for dividend payers that have above-market yields that are secure, says Bank of America.
Fuente: CNBC - 🏆 12. / 72 Leer más »