Starbucks Climbing Back

by The Investment U Research Team

In a rare bit of truly positive earnings, Starbucks (Nasdaq: SBUX) announced that it earned $151 million in the third quarter compared to a loss of $6.7 million last year. This news sent the shares up over 10%.

Even as overall sales were down, Starbucks’ focus on efficiency and cost savings at ever level has helped the bottom line – combined with store closings of almost 700 locations. These changes, combined with others, have started trickling down into its results.

Starbucks has been aggressively looking to change its image on a couple fronts. Starbucks gave away free pastries earlier this week, and is looking at natural products as well.

It’s also been looking to its stronghold Seattle market to test new store concepts

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For Immediate Release

Chicago, IL – July 10, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Dean Foods (DF), Hain Celestial (HAIN), United Natural Foods (UNFI), Del Monte (DLM) and Physicians Form Face (FACE).

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Here are highlights from Thursday’s Analyst Blog:

Organic Products in Demand

On account of mounting competition from alternative channels and evolving consumer needs towards a healthier life, the natural and organic sector is gaining importance. The natural products sector (which includes organic foods, nutritional and herbal supplements, cosmetics and medicines, among other categories) generated sales

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On account of mounting competition from alternative channels and evolving consumer needs towards a healthier life, the natural and organic sector is gaining importance. The natural products sector (which includes organic foods, nutritional and herbal supplements, cosmetics and medicines, among other categories) generated sales of over $68 billion in 2008. Over the last five years, the natural products industry grew 8% versus 2% for the overall grocery industry. Most recently in 2008, the natural products industry grew 7.4% versus a 2% decline for the grocery industry.

Food companies like Dean Foods (DF), Hain Celestial (HAIN), United Natural Foods (UNFI) and Del Monte (DLM) are market leaders in the natural products sector, and the competition is primarily based on brand recognition, price, taste preference and quality. Acquisitions have been a key part of these companies strategy to build their market share. Acquisitions have not only expanded their geographical

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United Natural Foods (UNFI) hosted its 2009 Financial Analyst Day in York, Pennsylvania. Steven Spinner, President and CEO, explained the company's strategy for growth, while Mark Shamber, CFO, reiterated sales and earnings guidance for fiscal 2009. Afterwards, analysts were invited to tour the company's newest and largest distribution center.United Natural Foods is the largest wholesale distributor to the natural and organic industry in the United States. Despite the current economic weakness having negatively impacted sales, the company has continued to grow the top line in the last two quarters, albeit at a low single-digit rate.The outlook for the natural products sector is positive, driven by increasing consumer awareness towards health and wellness. In fact, the natural products sector (which includes organic foods, nutritional and herbal supplements, cosmetics and medicines, among other categories) generated sales of over $68 billion in 2008.Over ...