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Purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, coffee-related accessories and equipment primarily through its operated retail stores.
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jblack91 (71.71) Submitted: 10/15/06 3:52 PM : Start Price: $37.90 SBUX Score: 53.29
Long-term, this is a loser. The coffee market infatuation that is driving this stock will get diluted in the future and also more competitive as everyone and their brother dives in (Dunkin, McDonalds, etc., etc.). Starbucks will have to move its model to be about food as well as coffee -- possible -- but also not something that any reasonable investor would bet on happening. And if you're buying this stock at current PE, you're betting on food and/or other retail concepts driving the future growth. Starbucks can move to a cash flow story from a growth story at some point down the road -- and show how valuable a company it is -- but my money is waiting on the sidelines until the growth story collapses to invest.
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bbcz (93.59) Submitted: 12/11/06 11:46 PM
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Spoken like a person who doesn't suffer from a caffiene addiction. Unfortunately, you are in the minority. The FAR minority :-)
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TMFBent (99.98) Submitted: 12/20/06 1:39 PM
Can't disagree too much on a valuation peek, but here's a riff on the model. This is essentially not a food or beverage play, but an ambiance play. They license and ambiance, a predictable place where people can enjoy a beverage -- sometimes coffee -- with predictable quality and predictable service.Sure, you can get better coffee at McDonald's, but are you going to sit around in one?
ELECENGRMAN (36.60) Submitted: 12/22/06 4:17 PM
I don't agree with you at all. Dunkin Donuts and Caribou Coffee are probably Starbucks main competitors. DD is an expanding regional (regional being used very loosely) but they have a long way to go. Starbucks on the other hand has 2 stores in several shopping center, one in the shopping center and the other in Target as well as in Barnes and Noble. When you can put stores that close together you're doing something right. People are also willing to pay $4 for coffee everyday. I do realize DD is everywhere up north but they don't seem to be building as fast as starbucks
xmojo (90.88) Submitted: 7/27/07 10:11 AM
I just had a third Starbucks open within two miles of my home in a suburban area.They're successfully saturating the locations where I shop and find entertainment. They're definately going to get the loyalty as the younger crowd will become lifelong customers. Convenience, proximity, quality... I'm on board.
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