SBUX

Starbucks Corp

Consumer


Presented:09/12/2013
Price:$37.70
Cap:$56.60B
Current Price:$95.04
Cap:$107.70B

Presented

Date09/12/2013
Price$37.70
Market Cap$56.60B
Ent Value$55.16B
P/E Ratio28.39x
Book Value$3.85
Div Yield1.4%
Shares O/S1,502.80M
Ave Daily Vol8,520,000
Short Int0.99%

Current

Price$95.04
Market Cap$107.70B
Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. As of September 30, 2012, the company operated 9,405 company-operated stores and 8,661 licensed stores. Its stores offer regular and decaffeinated coffee beverages, Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages, premium Tazo teas, packaged roasted whole bean and ground coffees, Starbucks VIA Ready Brew soluble coffees, Starbucks coffee and Tazo tea K-Cup portion packs, Starbucks Refreshers beverages, juices, and bottled water. The company’s stores also provide various food items, including pastries, prepared breakfast and lunch sandwiches, oatmeal, and salads. In addition, it licenses the rights to produce and distribute Starbucks branded products to The North American Coffee Partnership with the Pepsi-Cola Company, as well as licenses its trademarks through licensed stores, grocery, and national foodservice accounts. The company offers its products under the Starbucks, Tazo tea, Seattle’s Best Coffee, Starbucks VIA Ready Brew, Starbucks Refreshers, Evolution Fresh, La Boulange, and Verismo brand names. Starbucks Corporation has a strategic agreement with Danone to create and develop a line of dannon-branded fresh dairy products. The company was founded in 1985 and is based in Seattle, Washington.

Please note, this stock split on 04/09/2015 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $75.39.

Highlights

The presenter does not normally like to buy high multiple stocks, but Starbucks (SBUX) is executing well and growing revenues at an accelerating pace; margins are also improving, as coffee costs have moderated over the past 18 months. He noted SBUX just recently reported comp growth of 9%, and his expectation is for robust same store sales growth over the next 12-15 months. The key driver of growth is the roll out of SBUX’s La Boulange food offering.

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Idea Discussion

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