Starbucks sales momentum can continue, says RBC Capital After Starbucks reported higher than expected EPS but lower than expected revenue, RBC Capital thinks rewards redemptions and retail strength outside the American can enable the company's sales momentum to continue. The firm sees a number of positive catalysts that will boost the company's margins, and it keeps a $90 price target and Outperform rating on the shares.
EU says Starbucks tax deal in Netherlands may be illegal state aid, WSJ says The European Union said the tax deal struck by Starbucks (SBUX) in the Netherlands amounts to illegal state aid, reports the Wall Street Journal. European Commission regulators said it reached a preliminary view that the tax deal violated guidelines produced by the Organization for Economic Cooperation and Development. It said the tax deal "tolerates questionable adjustments which allow Starbucks Manufacturing BV to lower the resulting corporate income tax basis in the Netherlands." The EU is also investigating tax arrangements of Apple (AAPL) in Ireland and Amazon (AMZN) and Fiat S.p.A. (FIATY) in Luxembourg. Reference Link