Wed, Apr 23, 2014, 11:31 AM EDT - U.S. Markets close in 4 hrs 29 mins

Recent

% | $
Quotes you view appear here for quick access.

Starbucks Corporation Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • billaben billaben Jan 30, 1998 6:12 PM Flag

    January revenues

    I just received the annual report from SBUX. Very nice quality. Lets discuss some issues:

    Gross Margin has increased due to the lower coffee prices AND the increase in the product price...good and bad.

    More new stores opened than the company anticipated, which is good. But I have a serious question...how many stores are
    enough??? There is basically a Starbucks anywhere I go in Los Angeles...when will this new store trend saturate??? Most big US cities
    have Starbucks locations everywhere, but its has not fill up the rest of US smaller cities and suburban areas, as well as the
    rest of the world. Any opinions on how long the rapid US expansion will last, and when will the overseas expansion kick in full
    speed (only 17 overseas stores yet).

    The supermarket channel is doing OK, slowly getting market share from PG and other lower-grade coffee/powder. As many people are still not aware of coffee is actually beans, not powder in a can.

    Ice cream and bottled Frap is kicking, some of the best stuff you can get in a supermarket.

    I guess SBUX's expansion are targeted towards the supermarket and overseas markets now, because SOMEDAY the US stores will be saturated. Today, 86% of total revenue are from retail stores, I am expecting the ratio to go to 70% as other businesses expand.

    Concerning coffee prices, numerous people have related that to the probability of lowering earnings in this thread. However, the company has secured a large inventory of coffee beans thru contracts @ a fixed price, therefore, such worries are dumbfounded. That inventory will last until end of 1998 the least.

    Not to mention the stock price of SBUX has outperformed the Nasdaq average in all years but 1997, and it beat the other restaurants/drinking establishments stocks by FAR. SBUX did not beat individual Nasdaq giants such as DELL and CSCO, but well better performed than the average.

 
SBUX
70.73-0.42(-0.59%)11:30 AMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.