Ari Felhandler

1 week ago | morningstar.com | David Swartz |Ari Felhandler

We assign a narrow moat rating to Dick’s Sporting Goods. Although sporting goods are sold through many channels, we believe that Dick’s has earned a competitive edge based on a brand intangible asset. The retailer is a key destination for consumers and athletic apparel and equipment vendors, standing resilient while many peers have shuttered. Supporting brand loyalty, we believe consumers are drawn to a vast, on-trend product assortment and differentiated in-store experience and service model.

2 months ago | morningstar.com | Sean Dunlop |David Swartz |Ari Felhandler

Starbucks' business strategy looks likely to change materially, consistent with new CEO Brian Niccol's "Back to Starbucks" plan. The firm continues to play in a global category of one, with the firm's $36 billion in 2024 revenue outpacing its closest global competitor, Inspire Brands' Dunkin', by a factor of 3 globally and by a factor of 2 in the firm's home US market.

2 months ago | morningstar.com | David Swartz |Ari Felhandler

Given that Starbucks’ SBUX turnaround is in its early stages amid a challenging restaurant landscape, expectations were tempered going into the firm’s fiscal 2025 first-quarter report. Although sales of $9.4 billion were flat and exceeded our $9.3 billion estimate, its earnings per share of $0.69 fell $0.03 short. We don’t anticipate making a material change to our $86 fair value estimate, leaving shares as rich.

Nov 15, 2024 | morningstar.com | Dan Su |Ari Felhandler

Celsius has amassed impressive volume share gains in the North American functional and reduced sugar energy drink category in recent years, surpassing $1.3 billion in sales in 2023 from just $75 million in 2019.

Sep 10, 2024 | morningstar.com | David Swartz |Ari Felhandler

We have upgraded our moat rating for Dick’s Sporting Goods to narrow from no moat. Although sporting goods are sold through many channels, we believe that Dick’s has earned a competitive edge based on a brand intangible asset. The retailer is a key destination for consumers and athletic apparel and equipment vendors, standing resilient while many peers have shuttered.