Further co said beverage sales make up 10% of revenue and most they are hoping for with SBUX agreement is to up that to 15 or at the most 20% of revenue.Also cannot sell SBUX Frappuccino.Not a game changer by any means.Now you need to price in steep price of heavy dilution in strategic plan of expansion.Still trading 30% higher than when SBUX pr was released.Still a good short as any turnaround is at least a year away and highly doubt they can pull it off.
I think you're missing the point about the Starbucks opportunity. The upside potential isn't so much from selling more coffee, but rather from selling more cupcakes due to increased traffic. They have very good margins on their cupcakes, so even a realtively small and steady increase in same-store sales could lead to good profitability in the long term.
With that said, I am also concerned about the potential dilution.