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Starbucks Corporation Message Board

  • Doggus47 Doggus47 Jul 20, 1999 12:50 PM Flag

    Off Topic- Jackie Mason on SBUX 1

    I'm an SBUX long but I think this is funny,
    especially when you read it in Jacke Mason's

    Starbucks is the best example of a phony status symbol
    means nothing. People will pay 10x as much for
    Starbucks because there are French words all over the
    place. You want coffee in a coffee shop,that's 60
    But at Starbucks,
    Cafe Latte: $3.50.
    Cafe Suisse: $9.50.
    For each French word,
    another four dollars. Why does a little cream in coffee
    make it worth $3.50? Go intoany coffee shop; they'll
    give you all the cream you want until you're blue in
    the face. Forty million people are walking around in
    coffee shops with jars of cream: "Here's all the cream
    you want!" And it's still 60 cents. You know why?
    Because it's called "coffee." If it's Cafe Latte - $4.50.
    You want cinnamon in your coffee? Ask for cinnamon in
    a coffee shop; they'll give you all the cinnamon
    you want.
    Do they ask you for more money because
    it's cinnamon? It's the same price for cinnamon in
    your coffee as for coffee without cinnamon - 60 cents,
    that's it. But not in Starbucks. Over there, it's
    Cinnamonnier - $9.50.
    You want a refill in a regular coffee
    shop, they'll give you all the refills you want until
    you drop dead. You can come in when you're 27 and
    keep drinking coffee until you're 98. And they'll
    start begging you: "Here, you want more coffee, you
    want more, you want more?" Do you know that you can't
    get a refill at Starbucks? A refill is a dollar
    fifty. > Two refills,
    $4.50. Three refills,
    $19.50. So, for four cups of coffee - $350.
    And it's
    burnt coffee. It's burnt coffee at Starbucks, let's be
    honest about it. If you get burnt coffee in a coffee
    shop, you call a cop. You say, "It's the bottom of the
    pot. I don't drink from the bottom of the pot.
    when it's burnt at Starbucks, they say, "Oh, it's a
    blend." It's a blend? "It's a special bean from
    Argentina....." The bean is in your head.

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    • just so I had the opportunity to read Doggus' posts. Jackie Mason would be proud.

      • 2 Replies to Mellow950
      • I was thinking of buying SBUX the day after it
        took the big plunge a few weeks ago in spite of
        financial numbers and a gut hunch telling me it was
        overvalued. So, I decided to hold off a few days to see if it
        had a healthy rebound in it. So far, it doesn't look
        good; its high price seems to be making the stock value
        slowly shave downward, and the intense fan loyalty for
        this one makes it a risky short play also. It reminds
        me of another company that went sky-high and hit
        hard afterwards.

        I sure hope this company
        doesn't change its name to "Boston Coffee"!

      • a ship whose tugboat line snapped....drifting among the waters of the north atlantic.....might be a while for the rescue ships to come

    • And there are no chairs in Starbucks. Instead,
      they have these high stools. You ever see these
      stools? You haven't been on a chair that high since you
      were two. Seventy-three year old Jews have to climb
      and climb to get to the top of the chair. And when
      they get to the top, they can't even drink the coffee
      because there's 12 people > around one little table,
      and everybody's
      saying, "Excuse me, excuse me,
      excuse me, excuse me....."
      Then they can't get off
      the chair. Old Jews are begging Gentiles,"Mister,
      could you get me off this?" Do you remember what a
      cafeteria was? In poor neighborhoods all over this country,
      people went to a cafeteria because there were
      waiters and no service. And so poor people could save
      money on a tip.
      Cafeterias didn't have regular
      tables or chairs either. They gave coffee to you in a
      cardboard cup. So because of that you paid less for the
      coffee. You got less, so you paid less. It's all the same
      as Starbucks - no chairs, no service, a cardboard
      cup for your coffee - except in Starbucks, the less
      you get, the more it costs. By the time they give you
      nothing, it's worth four times as much. Am I exaggerating?
      Did you ever try to buy a cookie in Starbucks? Buy a
      cookie in a regular coffee shop. You can tear down a
      building with that cookie. And the whole cookie is 60
      cents. At Starbucks, you're going to have to hire a
      detective to find that cookie, and it's $9.50. And you
      can't put butter on it because they want extra. Do you
      know that if you buy a bagel in Starbucks, you pay
      extra for cream cheese? Cream cheese, another 60 cents.
      A knife to put iton, 32 cents. If it reaches the
      bagel, 48 cents. That bagel costs you $312.
      And they
      don't give you the butter or the cream cheese. They
      don't give it to you. They tell you where it is. "Oh,
      you want butter? It's over there. Cream cheese? Over
      here. Sugar? Sugar is here." Now you become your own
      waiter. You walk around with a tray. "I'll take the
      cookie. Where's the butter? The butter's here. Where's
      the cream cheese? The cream cheese is
      there." You
      walked around for an hour and a half selecting items,
      and then the guy at the cash register has a
      in front of him that says "Tips." You're waiting on
      tables for an hour, and you owe him money. Then there's
      a sign that says please clean it up when you're
      finished. They don't give you a waiter or a busboy. You
      have to clean up the place. Old Jews are walking
      around cleaning up Starbucks.
      "Oh, he's got dirt too?
      Wait, I'll clean this up." They clean up the place for
      an hour and a half. If I said to you, "I have a
      great idea for a business. I'll open a whole new type
      of a coffee shop. A whole new type. Instead of 60
      cents for coffee I'll charge $2.50, $3.50, $4.50, and
      Not only that, I'll have no tables, no chairs, no
      waiter, no busboy, and you'll clean up for 20 minutes
      after you're finished." Would you say to me, "That's
      the greatest idea for a business I ever heard! We can
      open a chain of these all over the world!" No, you
      would put me right into a sanitarium. Starbucks can
      only get away with it because they have
      titles for everything, the Nazi bastards
      sons-of-bitches. And I say this with the highest respect, because
      I don't like to talk about people.

      • 2 Replies to Doggus47
      • Where can I get a more updated list of insider
        trades. Yahoo's list is from april. I want to make sure
        old Howard hasn't sold all his shares and fleeing to
        europe and leaving us latte lovers holding worthless
        stock. I don't see a turn around coming this summer.
        weather is too cold, coffee futures are too high,
        estimated cost for innner city location, underestimated and
        rents are too high in the inner cities because the
        landlords(howards friend) are making a killing off the renter. Not
        to mention the tea sales in China are slow and the
        Starbucks newest adventure into rice bars are not taking
        off like expected but watch for a prototype to open
        in Seattle's international district.( but that is
        considered an inner city location so they have entered into
        joint venture with Howard's brother, Saul. who has a
        better understanding of what it takes to operate a
        turnkey operation in inner city locations.

      • I wish more people had the good sense to enjoy themselves in the stock market. You brought tears to my eyes!

    • It is all true what you wrote!

    • this morning. Doesn't everyone listen to NPR on the way to work???

    • ...and analysts are liking it.

      July 22 8:49 PM ET
      Starbucks To Tone Down Internet
      By Chris Stetkiewicz

      SEATTLE (Reuters) -
      Coffee retailing giant Starbucks Corp (Nasdaq:SBUX -
      news) Thursday reported quarterly net income in line
      with Wall Street estimates and said it would ease back
      on its aggressive plans to expand on the


      Chief Executive Howard Schultz said Starbucks will grow
      its Internet business conservatively, not through big
      acquisitions, as investors had feared, and will refocus on its
      core coffee retailing business.

      The company,
      which saw its stock drop more than 25 percent last
      month after warning earnings would be depressed by its
      Internet investments and slow growth in its non-core
      businesses, remains committed to the Web, Schultz

      ``Our enthusiasm for the potential of the Internet and
      our confidence in the power of the Starbucks
      brand...remains strong,'' Schultz said in a conference call with
      analysts monitored over the Internet.

      over the last several months it has become clear that
      our enthusiasm has been misinterpreted,'' Schultz
      said. ``I want to put those concerns to rest and I'd
      like to reemphasize my commitment to our core

      Starbucks, which operates or franchises 2,312 coffee stores
      worldwide, will forego any major non-retail acquisitions,
      specifically those involving the Internet, and expand its Web
      business conservatively, Schultz said.

      The company
      said it planned to open 600 new stores worldwide in
      the fiscal year ending September 2000, including at
      least 350 company-operated stores and a total of 150
      new stores in the Pacific Rim and the United

      Company officials also pledged earnings would grow by 25
      percent in fiscal year 2000, regardless of its spending
      on the Internet.

      Analysts hailed the
      announcements, saying they showed Starbucks would stop
      neglecting its retail business, from which it derives 80
      percent of its revenue, and would shop its wares in
      cyberspace more intelligently.

      ``It's tough when you
      have a great bricks-and-mortar business to try to
      capitalize on the Internet without diluting growth and I was
      relieved to hear they're not going to go that way,'' said
      analyst Laura Richardson at Pacific Crest

      The announcements came after the stock market had
      closed for the day. Starbucks shares had finished down
      $1.31 at $23.94 in Nasdaq trading.

      By taking
      smaller positions in a number of budding online
      companies, Starbucks can lower its financial risk and market
      its coffee-related products to a wide range of
      consumers, said Hambrecht & Quist analyst Bonnie

      ``They're biting off a little less Internet, which is what
      I thought they were going to do all along,'' said
      Tonneson, who rates the stock a buy.

      promising a 25-percent growth rate. They have an incredible
      brand, and good growth opportunities both domestically
      and abroad. That's a buy,''

      Schultz, an investor in online auctioneer Ebay Inc. and Inc., is determined to tap the Internet to sell
      more goods ranging from lawn furniture to
      pre-mixed coffee to Starbucks' young, wealthy and Web-savvy

      Starbucks is taking a minority stake in, a Web
      portal selling home furnishing which will eventually
      expand into other ``lifestyle'' products, Schultz said.
      Schultz likened that link to Starbucks' passive
      investment in online community operator Talk City Inc.,
      which went public this week.

    • you know it. Last I saw, SBUX was up in after
      hours trading, which bodes well for tomorrow. The bad
      news is out, and they've indicated that they are going
      to reevaluate the internet strategy, to which the
      institutional investors will react positively. That alone will
      drive the stock up, and I still look for them, in spite
      of the "reevaluation", to announce their internet
      "partner" real soon, which, if it is a solid partner, will
      drive the stock up further. They've gotten the message
      regarding the internet want to do it, do it,
      but minimize the impact on shareholder value. Have
      fun in Italy!

    • Recession means recession. Times are not good.
      Equities will be lower across the board. Starbucks will
      also be lower. People will continue to take part in
      drinking coffe, probably more than ever. Did I miss the
      news? Did Starbucks send out a release that states they
      must always get $3 for a cup of coffee? Is it in the
      company bylaws? If they determine the need to drop price
      to compete I'm certain that it would not knock them
      out of business.

    • Are there too many McDonald's?
      Starbucks is
      not remotely comparable to Boston Chicken.
      "Saturation" is not an issue for SBUX. Are there too many
      coffee shops generally? Probably. But it isn't the SBUX
      shops that will go away, it's the mom and pops. Their
      supposed "competitor" Diedrich will probably "revise"
      estimates on new store opening, but SBUX will keep coming.
      Why? Because every town wants their own. Starbucks is
      the "giant" of their industry, as an article posted
      recently pointed out. Anytime a company hits the jackpot,
      everybody and their brother jumps in for a piece of the
      pie. Please elaborate, with facts, as to why you think
      "the trend is dying." The "trend" will ultimately be
      consolidation, and the "giant" will reign supreme.

    • it will come shortly guys. Shultz has once again
      bounced around on strategy. What the hell is his board
      doing??? This guy is completely out of control. The book
      deal 18 months ago sent him over the edge as to self
      importance. Barkley is right on. There is no way a high PE is
      warranted. SBUX is not Boston Chicken ( that was always a
      joke and never made money), but people have to wake
      up. So far, it has been clockwork......the bounce is
      now taking place, followed by a plop to 20ish befor
      it heads further south.

      To those of you who
      bought management's shares when they were unloading at
      35+ "like a fire drill", you cannot hope this stock
      up. Cut your losses. Shultz does not have the "right

    • The 3 to 6-month target price is $ 40 per share.

      Was his old target price $50 per share?

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