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Starbucks, the ubiquitous purveyor of caffeinated beverages, is the world's leading specialty coffee retailer.
Starbucks through its forward looking management and powerful brand recognition will continue to dominate its industry and expand. People have demonstrated that they don't mind paying top dollar for a premium product and I believe management will find ways to entice people into trying concepts unrelated to coffee that will ultimately keep the company profitable for years to come.
As great a company as Starbucks is, I cannot, in good conscience recommend any mature company whose stock is hovering at a p/e of around 250. Let's assume the company grows 10x in the next 5-10 years growing their EPS by that amount (a dubious assumption). If its p/e were to revert to the average (as they tend to do) you would still be 40% in the hole on this one. If it doesn't grow very much, which is quite possible; a p/e reversion to the mean would result in an investor losing over 90% of their money.
Well run company with international expansion. Coffee prices have come off a bit.
Solid product, excellent management, worldwide brand recognition, and excellent marketing. Others follow..... Worldwide consumer product appeal regardless of brand, and Starbucks share position still has room for growth, especially in Europe. They continue to be creative with new recipes for flavorful drinks, and they have an uncanny strength in locating their outlets in areas where there is not only hi-volume, but hi-volume of their product patrons. I buy every two weeks.
Paying $5 for a coffee now just seems to be normal. That's a big achievement. From a consumer's standpoint they are consistent. The in store experience is consistent in the shops I have visited in a few different countries. The "third place" hang out vibe will drive their growth.
Good in bad times as well as good. An affordable treat.
Continued growth in world wide markets. Introduction of new ideas ie Tevanna tea, in store sodas. evening wine bars in select locations. CEO constantly is looking for greater market share.
solid future growth
Lots of room to grow, and strong brand.
Starter stocks I don't own yet
Starbucks is still bringing in new customers with tasty new beverages. This can only lead to continuous growth and company expansion. I'm going in for a couple hundred shares myself!
Starbucks is a constantly innovative company that generates repeat customers through their mobile payment platform and loyalty programs. In the pipeline and on the move, they have conjured up recent ideas like digital tipping--another strong investment in their over 200,000 store partners. Starbucks is also expanding beyond the morning rush of costumers by offering more lunch items and rolling out the Starbucks evening program to around 1,000 stores this year. Investors should consider buying or adding to their position at the current share price that is hovering between $69 to $72 per share, roughly 22 times forward earnings. After all, twenty years from now wouldn't it be cool to say: "I was in on the 'ground floor' of Starbucks (round two)."
well trained customer friendly service by people that enjoy their job & it shows, & they project Starbucks great brand & ideals.
Opening up 1,500 new stores this year, solid comp growth in the mid to upper mid digits, focusing on China, expanding offerings to boost sales and margins (assuming the new offering is considered "better" and is more expensive).
1. Great brand2. Excellent CEO & Management3. Ability to grow through innovative new products4. Profitable
Growth stalling, high P/E.
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.
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.
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