{"id":211,"date":"2020-06-01T01:34:21","date_gmt":"2020-06-01T01:34:21","guid":{"rendered":"https:\/\/mikemcmahon.info\/coach\/?p=211"},"modified":"2020-06-07T19:50:11","modified_gmt":"2020-06-07T19:50:11","slug":"starbucks","status":"publish","type":"post","link":"https:\/\/mikemcmahon.info\/coach\/starbucks\/","title":{"rendered":"Starbucks"},"content":{"rendered":"\n

One sentence overview<\/strong>: As the largest coffeehouse in the world, Starbucks is seen to be the main representation of the United States\u2019 second wave of coffee culture.<\/p>\n\n\n\n

Starbucks Ticker : \u00a0 SBUX\u00a0<\/p>\n\n\n\n

5\/29\/2020 Stock Price : $77.99<\/p>\n\n\n\n

5\/29\/2020 Market Cap : $91.1B<\/p>\n\n\n\n

Total Shares Outstanding Recent Quarterly Report :\u00a0 \u00a0 1.18 billion shares<\/p>\n\n\n\n

<\/td>Jan 2020<\/strong><\/td>March Low<\/strong><\/td>Mar 31<\/strong><\/td>5\/29\/2020<\/strong><\/td>YTD %<\/strong><\/td><\/tr>
Starbucks<\/td>$89<\/td>$56<\/td>$66<\/td>$78<\/td>-12.6%<\/td><\/tr>
S&P 500<\/td>3231<\/td>2237<\/td>2585<\/td>3044<\/td>-5.8%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Starbucks Investor Relations Page<\/p>\n\n\n\n

https:\/\/investor.starbucks.com\/ir-home\/default.aspx<\/a><\/p>\n\n\n\n

Starbucks SEC Page<\/p>\n\n\n\n

https:\/\/www.sec.gov\/cgi-bin\/browse-edgar?CIK=sbux&owner=exclude&action=getcompany<\/a><\/p>\n\n\n\n

Starbucks Glassdoor Ratings<\/p>\n\n\n\n

https:\/\/www.sec.gov\/cgi-bin\/browse-edgar?CIK=sbux&owner=exclude&action=getcompany<\/a><\/p>\n\n\n\n

Starbucks Overview<\/strong><\/p>\n\n\n\n

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the largest coffeehouse in the world, Starbucks is seen to be the main representation of the United States\u2019 second wave of coffee culture. Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automatic espresso machines for efficiency. The company operates 30,000 locations worldwide in over 77 countries, as of early 2020. Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store.<\/p>\n\n\n\n

Headquartered in the Starbucks Center, the company was founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker in the Pike Place Market. During the early 1980s, they sold the company to Howard Schultz who \u2013 after a business trip to Milan, Italy \u2013 decided to make the coffee bean store a coffee shop serving espresso-based drinks. Schultz\u2019 first tenure as chief executive, from 1986 to 2000, led to an aggressive expansion of the franchise, first in Seattle, then across the West Coast. Despite an initial economic downturn with its expansion into the Midwest and British Columbia, the company experienced revitalized prosperity with its entry into California in the early 1990s through a series of highly-publicized coffee wars. Schultz was succeeded by Orin Smith who ran the company for five years, positioning Starbucks as a large player in fair trade coffee and grew sales to $5 billion. Jim Donald, served as chief executive from 2005 to 2008, orchestrating a large-scale earnings expansion. Schultz returned as CEO in the middle of the 2008 financial crisis and spent the succeeding decade growing its market share, expanding its offerings, and reorienting itself around corporate social responsibility. Kevin Johnson took over from Schultz in 2017, and continues to serve as the firm\u2019s chief executive.<\/p>\n\n\n\n

Products<\/strong><\/p>\n\n\n\n

Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select \u201cStarbucks Evenings\u201d locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores. In 2010, the company began its Starbucks Reserve program for single-origin coffees and high-end coffee shops. Starbucks operates six roasteries with tasting rooms and 43 coffee bars as part of the program. In November 2019, the world\u2019s largest Starbucks opened in Chicago on the Magnificent Mile as the sixth roastery location.\u00a0<\/p>\n\n\n\n

Business and Financial Drivers<\/strong><\/p>\n\n\n\n

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Competition<\/strong><\/p>\n\n\n\n

Starbucks competitors include: <\/strong>Caff\u00e8 Nero, Costa Coffee, Mc Caf\u00e9, Dunkin Donuts, Caf\u00e8 Ritazza, Caf\u00e9 Coffee Day, Coffee Republic, Dilmah Tea, and Tim Hortons<\/p>\n\n\n\n

Future Outlook<\/strong><\/p>\n\n\n\n

Starbucks can accelerate the power and momentum of Starbucks\u2019 digital flywheel. Enable long-term growth in China. Elevate the Starbucks Experience through Roasteries and Reserve. Gain share of at-home coffee<\/p>\n\n\n\n

Risks<\/strong><\/p>\n\n\n\n

Starbucks brand in the future, including global competition, commodity prices and changing dynamics in the retail market. \u2026 Future earnings growth depends on consumer tastes, government regulations, corporate management, input prices, and many other factors.<\/p>\n\n\n\n

Disclaimer: I do not have any formal recommendation for or against this stock, so don\u2019t buy or sell stocks based solely on what you read.<\/em><\/p>\n\n\n\n

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