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Starbucks, the ubiquitous purveyor of caffeinated beverages, is the world's leading specialty coffee retailer.
With moving into China and higher coffee prices, SBUX should do well over the next 2-5 years.
Many different streams of growth not being priced into the company's current valuation
Addition of Teavana and increased global presence in a variety of retail and store locations shows a lot potential for future growth.
Overvalued and facing stiffer competition for market share than it has in a long time. Dunkin' Donuts is slowly going national and as a regular customer of a nearby branch I assure you it is going to have enviable customer loyalty.
Don't focus on the wonky TTM P/E ratio that still includes the settlement with Kraft. Starbucks continues to have excellent pricing power, and so many potential levers to pull for revenue growth. It is constantly finding new ways to engage with its customers and keep the brand fresh, the growth plus that lasting brand strength keeping pricing power strong over the next several years makes this an outperform.
Starbucks has become more than a place to get coffee. It is a great brand that is differentiated in the marketplace. Starbucks will always do well because it is an emotional experience, not just a commodity.
- CEO Howard Schultz is a genius; focus on customer experience- stock advisor pick- Creating the place to go beside work and home- adding wine and cheese in the afternoon (quiet times)- CEO aims for $100b mkt cap
What makes Monkey love this investment going forward is not that there's a Starbucks in every Starbucks's bathroom––credit due to the fine folks over at The Onion for that one––but because there's genuine initiative to open stores that are unique and designed to reflect the culture and country and atmosphere of their location; check out this article for proof:http://www.wired.com/design/2014/01/starbucks-big-plan-to-be-your-cozy-neighborhood-coffee-shop/So the thing that made Monkey wear of an investment in SBUX––the generic, overcrowding of Corporate stores at the expense of mom and pop cozy cafes––is being directly addressed by the Starbucks's design team. And the value created by future expansion into food and tea, etc., is stupendous. Upshot: Monkey's got lots of bananas invested in this one and won't lose an minute's sleep when the market has one of its corrections because when things go sour, humans turn to the power of the coffee bean to make them feel better.
"My money is on Starbucks because of the teamwork with Oprah Winfrey and that everyonealready loves Starbucks!" It can only get better,
They have 11,000 stores in the US for less than 400 million people. They have only 380 stores in China for over a billion people and only 8 in India for over a billion people as well. Although both of these countries have a limited market, the potential for growth is still very large.
The demand for specialty hot and cold coffee and tea continues to pick up speed, and their cup and logo seemingly carry a little more status than a styrofoam cup from Dunkin Donuts or a gas/convenience store. Plus, customer service is done well at Starbucks. It's a well-run company.
Innovative Co. Rachel's March 2014 Pick
Store growth, tea business expansion
Starbucks has great coffees and hot chocolates. They get the temperature just right.
- PEG = 1.45- Outperformed S&P 500 over 52-week period- Good growth model- Trustworthy management- EBITDA = $3.05B- Manageable debt
Continue growth into new markets and history of success. There seems to be no slowing of the momentum for this company.
Cannot continue to pay out dividends higher than earnings in the long run....
Classic brand. All they gotta do is keeping making great tasting coffee and this company will do great things. HOLD for 5+ years and reexamine the market and Starbucks' position within the industry.
International expansion, Teavana, La Boulange will fuel growth. Schultz leading the charge will find a way to continue growing at an attractive rate.
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