Starbucks Corp.

The stable outlook on Starbucks reflects our expectation that the company will continue to capitalize on its positive operating momentum by issuing incremental debt to boost shareholder returns while managing to its 3x leverage target. We could lower our rating if Starbucks increased its capital return to shareholders through augmented debt issuance beyond what we currently contemplate such that leverage were sustained above 3x. Alternatively, we could lower the rating if operating performance meaningfully deteriorated, whether due to an economic slowdown, heightened competition, or execution issues, causing earnings and cash flow to weaken and leverage to extend beyond 3x. We could raise our rating on Starbucks if the company adopted a more conservative financial policy that resulted in adjusted leverage

...Menu innovation, digital efforts, and loyalty initiatives will continue to fuel Starbucks' growth at scale strategy. New beverage offerings, including Nitro Cold Brew, a revamped rewards program, and ongoing improvements to its mobile application are resonating with customers and driving traffic growth, resulting in global comparable store sales increasing 5% in fiscal 2019. We believe the company's efforts to strengthen customer engagement through improved convenience and in-store experience will contribute to strong sales momentum continuing in fiscal 2020....

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