-1.21%
18.01%
10.21%
38.14%
15.75%
9.52%
26.94%
AI Spotlight on SBUX
Company Description
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide.The company operates through three segments: North America, International, and Channel Development.Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.
The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts.The company offers its products under the Starbucks, Teavana, Seattle's Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brands.As of October 3, 2021, it operated 16,826 company-operated and licensed stores in North America; and 17,007 company-operated and licensed stores internationally.
The company was founded in 1971 and is based in Seattle, Washington.
Market Data
| Last Price | 107.68 |
| Change Percentage | -1.21% |
| Open | 109 |
| Previous Close | 109 |
| Market Cap ( Millions) | 122314 |
| Volume | 16551379 |
| Year High | 110.08 |
| Year Low | 71.55 |
| M A 50 | 96.39 |
| M A 200 | 88.75 |
Financial Ratios
| FCF Yield | 2.38% |
| Dividend Yield | 2.15% |
| ROE | -44.93% |
| Debt / Equity | -346.26% |
| Net Debt / EBIDTA | 326.38% |
| Price To Book | -16.35 |
| Price Earnings Ratio | 34.74 |
| Price To FCF | 42.04 |
| Price To sales | 3.38 |
| EV / EBITDA | 21.25 |
News
- 14:15 - Jim Cramer Backs New Starbucks CEO
- 12:01 - Starbucks' CEO-Led Turnaround Gains Traction: New Highs Likely
- Jan -30 - Off the Charts: Breakdown or breakout
- Jan -30 - Starbucks: The Niccol Era Has Begun, But Don't Be Giddy Yet
- Jan -29 - Starbucks Stock Shines as Analysts Mull Early Merits of Turnaround Plan
- Jan -29 - Starbucks' Comeback Plan: Algorithms, Digital Menus and Ceramic Plates
- Jan -29 - Starbucks CEO Brian Niccol on plan to improve mobile orders
- Jan -29 - Here's Why Starbucks Stock Popped Today After Reporting a Significant Drop in Sales
- Jan -29 - Starbucks Posts Earnings Beat: New CEO Will 'Fix The Business The Right Way,' Analyst Says
- Jan -29 - SPY Market Update: TMUS, SBUX and FLSR Soaring Today
- Jan -29 - Starbucks Q1 Earnings & Revenues Top Estimates, Global Comps Decline
- Jan -29 - New Starbucks CEO talks growth strategy, layoffs, menu
- Jan -29 - Starbucks is giving customers fewer options
- Jan -29 - Starbucks Stock Hits 52-Week High on Earnings Beat
- Jan -29 - Starbucks CEO Brian Niccol: Starting to see progress in our turnaround plan
- Jan -29 - Starbucks Failure Continues
- Jan -29 - Starbucks earnings: will SBUX end Niccol's turnaround streak?
- Jan -29 - There are 'signs of progress' in Starbucks CEO Brian Niccol's turnaround plan: Citi's Jon Tower
- Jan -29 - Analysts lift Starbucks' stock price targets as Wall Street buys into turnaround
- Jan -29 - American Rare Earths grows Halleck Creek resource to 2.63 billion tonnes with “truly remarkable” upside potential
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> North America
Expected Growth : 6.5 %
What the company do ?
North America is a segment of Starbucks Corporation that operates in the United States, Canada, and Latin America, offering coffee and other beverages.
Why we expect these perspectives ?
Starbucks' 6.5% growth in North America is driven by increasing same-store sales, successful menu innovation, and digital transformation. The company's loyalty program, mobile ordering, and delivery services have enhanced customer experience, leading to higher sales. Additionally, strategic pricing and effective cost management have contributed to the growth.
Segment n°2 -> International
Expected Growth : 7.5 %
What the company do ?
International from Starbucks Corporation refers to the company's operations outside of the US, spanning over 80 markets globally, offering a localized customer experience.
Why we expect these perspectives ?
Starbucks' 7.5% international growth is driven by strategic market expansion, particularly in China and Asia Pacific, where a growing middle class and increasing coffee consumption habits are fueling demand. Additionally, the company's digital transformation, including mobile ordering and loyalty programs, is enhancing customer experience and driving sales.
Segment n°3 -> Channel Development
Expected Growth : 8.0 %
What the company do ?
Channel Development from Starbucks Corporation refers to the company's strategy of expanding its retail presence through various channels, including company-owned stores, licensed stores, and online platforms.
Why we expect these perspectives ?
Starbucks' Channel Development growth of 8.0% is driven by strategic expansion into new markets, increased online presence through mobile ordering and delivery, successful partnerships with major retailers, and innovative product offerings such as ready-to-drink beverages and at-home coffee products.
Segment n°4 -> Corporate and Other
Expected Growth : 5.5 %
What the company do ?
Corporate and Other from Starbucks Corporation refers to unallocated costs, such as executive and administrative expenses, and revenues from other activities not attributed to reportable segments.
Why we expect these perspectives ?
Starbucks' Corporate and Other segment growth of 5.5% is driven by strategic cost savings initiatives, efficient supply chain management, and increased licensing revenue from branded consumer products. Additionally, the company's digital transformation efforts, including mobile ordering and loyalty programs, contribute to the segment's growth.
Starbucks Corporation Products
| Product Range | What is it ? |
|---|---|
| Beverages | Starbucks offers a wide range of hot and cold beverages, including coffee, tea, iced coffee, Refreshers, and seasonal offerings. |
| Coffee | Starbucks sources high-quality Arabica coffee beans from around the world and roasts them in-house to bring out the unique flavors and aromas. |
| Food | Starbucks offers a variety of baked goods, sandwiches, salads, and snacks, including healthy and indulgent options. |
| Merchandise | Starbucks sells a range of branded merchandise, including mugs, tumblers, and accessories. |
| Gift Cards | Starbucks offers digital and physical gift cards that can be used to purchase Starbucks products and experiences. |
| Starbucks Rewards | Starbucks Rewards is a loyalty program that rewards customers for their purchases and offers personalized benefits and offers. |
| Mobile Order and Pay | Starbucks offers a mobile ordering and payment service that allows customers to order and pay for their drinks and food ahead of time. |
Starbucks Corporation's Porter Forces
Threat Of Substitutes
Starbucks faces moderate threat from substitutes such as tea, juice, and other beverages. However, the company's strong brand loyalty and customer experience help to mitigate this threat.
Bargaining Power Of Customers
Starbucks customers have low bargaining power due to the company's strong brand and limited alternatives. However, the company's customer-centric approach helps to maintain customer loyalty.
Bargaining Power Of Suppliers
Starbucks has a diversified supply chain and long-term contracts with suppliers, reducing the bargaining power of suppliers. The company's scale and global presence also give it negotiating power.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the coffee shop industry, including high startup costs and the need for a strong brand and supply chain.
Intensity Of Rivalry
The coffee shop industry is highly competitive, with many established players and a high level of rivalry. Starbucks competes with other coffee chains, as well as independent coffee shops and cafes.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 148.15% |
| Debt Cost | 3.95% |
| Equity Weight | -48.15% |
| Equity Cost | 8.76% |
| WACC | 1.63% |
| Leverage | -307.70% |
Starbucks Corporation : Quality Control
Starbucks Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| YUM | YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates through four segments: the KFC Division, the Taco Bell Division, the Pizza Hut … |
| PHM | PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. … |
| BKNG | Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; … |
| MCD | McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, … |
| CMG | Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. As of February 15, 2022, it owned and operated approximately 3,000 restaurants in the United … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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PulteGroup
A-Score
1-Year Total Return ->
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Booking
A-Score
1-Year Total Return ->
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Yum!
A-Score
1-Year Total Return ->
4
McDonald's
A-Score
1-Year Total Return ->
5
Starbucks
A-Score
1-Year Total Return ->
6
