Latest news with #Cavender
CNBC
10-07-2025
- Business
- CNBC
Why investors think Starbucks' China business may be overvalued
Starbucks' investors were excited for a brief moment after CNBC reported that the coffee giant received offers valuing its China operations at up to $10 billion, sending its Nasdaq-listed shares over 3% higher briefly before paring back gains. Starbucks China has attracted offers for a potential stake sale, valuing the coffee chain at between $5 billion and $10 billion, according to sources, and the bidding is likely to settle toward the higher end of that range. Following the report, Starbucks shares jumped over 3% at open to an intra-day high of $97.89, levels not seen in over three months, before drifting lower to close with a 0.33% gain. SBUX 5D mountain Starbucks Corp Analysts appeared to take the hefty valuation with a grain of salt, saying the outsized offer may not align with the company's underlying fundamentals, with most keeping their target price for the stock unchanged. "This may be overvaluing the business and not placing enough weight on how competitive China's coffee market is, or how much Starbucks is currently struggling to create a clear identity in the market," Ben Cavender, managing director of China Market Research Group, told CNBC on Thursday. Similarly, analysts at Citi Bank suggested that the $10 billion valuation would be a steep price unless the buyer sees a clear path to stronger sales and better profitability for Starbucks' China business. "We expect $10B would need to reflect the buyer's view that there is room to quickly recoup sales lost during COVID" or improve its profitability, analysts at Citi Bank said in a note Thursday, noting that Starbucks' same-store sales in China were still down about 33% from pre-pandemic levels. The investment bank has set its 12-month target price for Starbucks at $95. The stock closed at $95.03 Wednesday. Starbucks China has been grappling with intensifying competition from local rivals, such as lower-priced Luckin Coffee and premium boutique coffee chains, with its market share falling to 14% in 2024 from 34% in 2019, according to data from market research provider Euromonitor International. Luckin Coffee , which has 24,032 stores in China and 65 stores outside China as of March, had a market value of $11.26 billion in its over-the-counter shares, as of Wednesday close. In comparison, Starbucks had 7,758 stores across China as of March, according to its latest earnings report. "The market in China evolves so quickly that it makes it difficult for a brand with such a large footprint like Starbucks to adapt quickly enough," Cavender said. Starbucks' same-store sales in China were flat in the first quarter of this year after falling for four consecutive quarters . To lure back mainland customers, Starbucks in June launched sugar-free options and opted for its first-ever price cut in China, lowering the prices of more than 20 iced and tea-based drinks by an average of 5 yuan (70 cents), to target what it called "China's fast-growing non-coffee market." "$10 billion seems on the on the higher end of the valuation while the actual price private equity settled may be lower," said Jason Yu, general manager at CTR Market Research, citing the "competitive challenges Starbucks is facing." "As consumers today are tightening their belt but are still willing pay premium on emotional value a coffee can bring, Starbucks is caught in the middle," Yu added, referring to the promotion deals launched by Starbucks on its app to narrow the price gap with competitors while seeking to retain its traditional brand image position as a premium coffee brand. "Ultimately Starbucks either will win the efficiency games, matching its price and operation model with its Chinese counterpart or closing those less profitable outlets and focus on real brand experiences," Yu said, noting that "it is very difficult to stay in the middle." Starbucks kicked off the formal sale process of its China operation late last year, a person familiar with the matter told CNBC, inviting preliminary proposals from potential suitors. It has not, however, decided whether to sell a controlling or a minority stake in its China business, CNBC learned. The move to sell a partial stake in Starbucks' China business is part of CEO Brian Niccol's turnaround playbook, CNBC Investing Club's Jim Cramer said. Niccol was CEO of Taco Bell back in 2016 when the chain's parent Yum Brands spun off Yum China, and turned it into a separate, publicly traded company later that year. The spin-off allowed the parent company to focus on its core business and return capital to shareholders through dividends and share repurchases . "If you don't own it, you should buy it," said Jim Cramer, referring to Starbucks' stock.
South Wales Argus
13-06-2025
- Politics
- South Wales Argus
Planning committee refuses permission for Fleur de Lis home
Applicant Adam Cavender told Caerphilly County Borough Council's planning committee he had served 18 years in the army, including in Afghanistan and Iraq, and had 'lost my hearing for this country'. He resubmitted his bid to build a detached home and garage on 'disused' and 'overgrown' land near Summerfield Terrace, after a previous attempt proved unsuccessful. Mr Cavender questioned why planning permission for an 'extremely large' home had been approved nearby, and said he would 'just want to be treated fairly' by the council. Cllr Teresa Heron, Caerphilly Council's 'Armed Forces champion', told the committee there was a 'clear precedent' for development in the area, and argued Mr Cavender's plans should be supported. She explained the Armed Forces Covenant, to which the council has signed up, states serving or former members of the military should 'not be disadvantaged when accessing public services'. 'This is not about special treatment, it's about ensuring equality,' Cllr Heron added. Council planner Joshua Burrows said officers had recommended the application be rejected because the site is 'outside the settlement limits' set by the council, and within a so-called 'green wedge' of agricultural land. The proposed new home would be considered an 'unduly large structure', he added. But committee member Cllr Shane Williams said there are 'quite a lot of large houses in that area'. Cllr Kristian Woodland asked about Mr Cavender's claims of fairness, given another home had been approved nearby. Senior planning officer Carwyn Powell said planning permission for that property had been granted before the council published its current Local Development Plan – a strategic blueprint setting out where homes can and cannot be built. It was therefore 'not possible to compare' the two cases, he explained. Mr Powell also defended the officers' recommendations in light of the Armed Forces Covenant, which he said had been respected in this case. 'We would refuse an application for any other member of the public' for the proposed development, he said, adding: 'The person is not being treated differently to anyone else.' It ultimately took intervention from the committee chairman for a decision to be reached, after no committee members initially backed the officers' recommendation to refuse planning permission. Cllr Roy Saralis, the committee chairman, told colleagues 'the Armed Forces Covenant has been taken into account'. Planning permission was refused by a majority vote.
Yahoo
29-05-2025
- Business
- Yahoo
Federal and state funding cuts could affect local farmers' markets
JOHNSON CITY, Tenn. (WJHL) – Ashley Cavender is the Equitable Nutrition and Food Access Director at Appalachian Resource Conservation and Development, or ARC&D. Cavender said that recent funding freezes and cuts to state programs, as well as proposed funding cuts to federal programs, could affect local farmers' markets and the farmers who rely on them. 'I see on a daily basis how many consumers come to spend their SNAP and benefits at farmers markets, and I see the benefit that the farmers receive in that as well,' said Cavender. 'So, it's also going to affect consumer is being able to come to the market and also it's going to affect their access to whole foods.' Fort Blackmore United Methodist Camp opening new public pool in Scott Co. Heather Shipley is the president of the Johnson City Farmers' Market. She says one of the SNAP programs being cut is the Double Up Food Bucks, which doubles the amount of produce you can buy up to $20. 'They're limited now to dollars that they do have at the farmer's market or at the grocery store, wherever they decide to get their food items,' said Shipley. 'If you're not spending that $10 with us, you're going to spend it somewhere else, you're going to look for more bang for your buck.' Cavender said last year that shoppers spent $19,000 in double-up food bucks at Northeast Tennessee farmers' markets. She also said these cuts will affect farmers who provide the produce for farmers' markets. 'All of that money that is generated just through SNAP and EBT alone is a really large number. So, their income is going to be affected, and we're also seeing where federal funding is being cut for our farmers as well. So, any of those alternative options that they could seek out are also not an option.' 'When it comes to even our programming, we're at risk of having federal funding cuts as well.' Shipley and Cavender said there are ways the public can help. 'You can actually, as an individual or a company, is sponsor the EBT program yourself, whether you make a onetime donation or you make maybe a seasonal donation,' said Shipley. 'Go to your local farmer,' said Cavender. 'The prices are honestly at this point, probably less. They've always been a little higher. But go to your local farmers markets, go to your local grocery stores and try to purchase this locally as possible, because they're going to need that now more than ever.' Cavender also said that incentive programs, such as those at farmers' markets, are at risk. One incentive program is the Farmacy Fit program, offered in partnership with the Tennessee Department of Health. This grant awards tokens to those who walk a mile at the farmer's market to spend on certain products. Cavender said the Department of Health has delayed the funding cycle, meaning they will not know for sure if ARC&D will receive the grant until July. Deborah Byrd, executive director of Jonesborough Locally Grown, said they have their own private walking program, called the Farm Fresh Fit Walking Program. In a statement, Byrd says: 'We are able to continue our private walking program but don't have the funds to last all summer for the number of participants we've had, so we'll have to limit the number of participants until we have more funding.' Deborah Byrd, executive director of Jonesborough Locally Grown. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
11-03-2025
- Business
- Yahoo
Giddyup! Cavender's kicks up expansion with second Albuquerque store
Mar. 10—What's better than a pair of cowboy boots? A pair of Cavender's stores. Cavender's, a Western-wear retailer based in Texas, is expanding its footprint, or boot print rather, in Albuquerque with a second location on the city's West Side. Patrons can find cowboy hats, cowboy boots, Western-style shirts, jeans, dresses, leather belts and other accessories at Cavender's stores throughout the country. Entrepreneurs and married couple James and Patricia "Pat" Cavender founded the store in Pittsburg, Texas, in 1965. The retailer first opened a store in Albuquerque at 1431-A Mercantile NE in 2014. The second location will be on the corner of Coors and Ellison, in a space formerly occupied by a CVS that closed in 2021. "We have been impressed by the growth of the Mercantile Ave store, year over year," said Cavender's spokesperson Jennifer Green in a statement to the Journal. "Albuquerque has been a great market for us, (and) we are excited to open another location for our customers." The 14,375-square-foot West Side store at 3821 Ellison NW will carry about 8,500 pairs of boots and offer personalized services, including boot fitting, hat shaping and boot stretching, Green said. Green told the Journal the location is expected to open in April, with a grand opening taking place later this spring. Cavender's venture started with a single store selling only three styles of Tony Lama boots. In 1977, the business got its big break when James bought 7,500 boots from another big boot store that went out of business. James opened a store in Tyler, Texas — now the Cavender's headquarters — to support the inventory. Today, Cavender's is in its 60th year of business and is selling brands such as Tony Lama, Lucchese, Laredo, Rocky Mountain and Wrangler in over 100 stores across more than 15 states. James and Pat, who died in 2018 and 2019, respectively, passed the business on to their sons, who still own and operate it. "Cavender's success is rooted in our 60-year commitment to providing our customers with the best products and services at affordable prices," Joe Cavender, president of Cavender's, told the Journal in a statement. "We're excited to grow and offer customers an authentic Western experience." Roughly 20 people are expected to be hired for full- and part-time positions, said Lynne Haire, a district manager with Cavender's. Green said the company isn't planning any further New Mexico expansions "at this time."
