Coffee giant Starbucks (NASDAQ:SBUX) is expanding the food items on its menu to improve customer traffic outside of its morning rush hours, according to Bloomberg.
Reportedly, the global coffee powerhouse is adding a chicken, maple butter, and egg sandwich to its menu this week. It is also introducing a vanilla-bean custard Danish and a potato, cheddar, and chive bake.
The company is looking to drive traffic to its outlets in the afternoons as part of its overarching growth strategy. This includes the introduction of new beverages and products intended to attract consumers at specific times of the day. As reported by Bloomberg, the company saw sales for its all-day breakfast offerings jump 20% in North America during the year through October 1.
Concurrently, the company is adding a hazelnut oat milk variety to its beverage offerings. Shares of the company have contracted by nearly 7% over the past year amid labor woes and concerns over its growth.
Meanwhile, Starbucks is slated to announce its first-quarter results on January 25. Analysts expect the company to post an EPS of $0.95 on revenue of $9.7 billion for the quarter. In the comparable year-ago period, SBUX’s EPS of $0.75 had missed the Street’s estimates by $0.02.
Is Starbucks Stock Expected to Rise?
Overall, the Street has a Moderate Buy consensus rating on Starbucks, and the average SBUX price target of $110.79 implies a substantial 18.3% potential upside in the stock.
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