As Starbucks Corp (NASDAQ:SBUX) shares continue on a downward trajectory, Cerity Partners' Jim Lebenthal is running for the exits.
"I just don't see any money to be made here," Lebenthal said Friday on CNBC's "Fast Money Halftime Report." He's waiting to see the company's earnings results before making any portfolio moves.
"I was rapidly losing interest, but I wanted to give the company a chance to outperform," Lebenthal said. "Last week's quarter didn't do it for me."
Starbucks reported quarterly earnings of 72 cents per share, which came in below the 80 cent estimate. The company reported quarterly revenue of $8.1 billion, which beat the estimate of $7.97 billion.
Starbucks CEO Kevin Johnson noted the company "experienced higher-than-expected inflationary pressures, increased costs due to omicron and a tight labor market" during the quarter.
See Also: Starbucks Stock Slumps After Q1 Earnings: 5 Top Analysts React To Rising Costs, Guidance Cut
Lebenthal says the stock is trading at too high of a multiple for only growing at 10%. Starbucks is trading about 28 times forward earnings, according to data from Benzinga Pro.
"Look, fabulous product, they treat their employees well, they're a good corporate citizen," Lebenthal said. "But I'm in this to make money not to pat the company on the back so I've sold it."
SBUX Price Action: Starbucks has traded as low as $93.79 and as high as $126.32 over a 52-week period.
The stock was down 1.19% at $94.79 Friday afternoon.
Photo: Engin_Akyurt from Pixabay.
