$21.12
-0.56 (-2.58%)
Starbucks Corp (SBUX)
CAPS Rating:
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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Recs
P/E of 50? Oh, that's very nice. For the price of one share of this stock or two latte's, you can buy a nicely sized can of Folger's. As a bonus, unlike NYSE stocks and Starbucks coffees, cans of Folger's can be purchased with food stamps.
Then again, we all need that extra boost for a hard day of house flipping and making HELOC loans. The bell hasn't even begun to toll for this overextended company.
Overextended? This company has always carried very little debt. Yes they have had to close some US locations but they are not closing the good ones where they have already implanted themselves in the best spots. Still plenty of room to grow especially in China. I would have a hard time betting against this powerful brand and franchise. You are getting some Rec's but looks like you are losing points and I think that will continue. At 13.36/share we are getting up to the cost of a few lattes now, or maybe a couple lattes and a pastry, you deserve it though, treat yourself! Also watch for that P/E to come down dramatically once they report.
Actually, you can buy Starbucks coffee with food stamps at Kroger. I have red thumbed this stock and taken a beating as well. They have a great brand and are significantly better than any of their competition. I still struggle with this stock in the next three years or so. Things will be tight and that really expensive espresso drink has got to be one of the first things to go.
Yeah but then you'd have to drink Folgers.... life is too short to drink bad wine or bad coffee. They still have a strong brand and will recover at some point. I'm still in the black by a good margin. They are taking the right actions by closing weaker stores and cultivating the culture of the brand. They'll be back.
Ok so P/E of 50 you say.. Now its in three digits.. But what you need to ask is that is it really a good indicator for this stock.. Now they had to incur restructuring costs and so they lost a quarter or two of earnings but thats in the past. Their next year P/E is 17... The are going to generate 1/2 Billion dollar of free cash flow going forward. You read it right that a B as in Billion.. I have my concerns in terms of future growth as well but once the growth returns, it has to or what are they going to do with 1/2 a billion dollar, todays stock price will be considered cheap.
I dont want to irate non-coffee fans since I did not care for a long time what coffee it is as long as it was hot. Over the past month I have been lucky since my company is ordering starbucks.. Now I am addicted to it. The aroma of Starbucks coffee is so distinctive that it makes you feel good about your coffee.. I know lot of people do not get it and I was one of them for a long time... However, think about the ones you get it.. Even though I never got it what was so special about SBUX, i still used to go there occasionally for the ambience.. I know people who go there daily.. Now thats a Brand you want to own.. Keurig or no Keurig you cant beat that..
Just wondering how your pick is doing now? Up 18 percent in one day isn't too shabby. ha ha
Yeah, but folgers is crappy. The best part of waking up is not having to drink folgers.
Don't worry Financial. Starbucks offers an easily replicable product. I'm comfortable with this pick. I'll be particularly comfortable with it when the bread lines snake past the store fronts in five years.