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  • billaben billaben Jan 29, 1998 4:39 PM Flag

    January revenues

    Great analysis Dow, I take it that you meant less new stores but constituted to a 34% rise in revenue---bullish. Either way, 7 percent increase is ok, but does it factor in the price increase? If it does, then that is not a positive sign because the same store did not sell anymore coffee, but only made more $ due to price inflation.

    Coffee prices are @ 1.75 now, and Starbucks' premium coffee carries a 30% premium. Starbucks' management went thru a period of high priced coffee in 1994 (2 bucks) and I think they have learnt the lesson of keeping more coffee in inventory ahead of time.

    There are many other companies that are trying to mimic Starbucks' success, and try to make a nice profit for selling 3 dollar lattes. But some of them are just in for the ride, not to provide great products...a coffee shop @ Universal Studios in Hollywood offered 3.5 dollar lattes but they tasted like CRAP. No flavor, no aroma, no espresso that Starbucks is offering.

    However, I do like some generic stores here and there.

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