Value Stocks Episode 13 – Starbucks Corporation

by May 1, 2019Value Stocks Podcasts Episodes0 comments

Starbucks Stock Analysis

Summary: 

  • Tailwinds of Starbucks’ future growth will be driven by the pace of the increasing purchasing power of emerging markets .
  • In the next 10 years I think it is very likely that Starbucks will be a much larger organization
  • Growth has been impressive but it is inevitable that this growth eventually slows down 

In this episode, Alex discusses Starbucks Corporation (NASDAQ: SBUX).  Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.  They operate as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe/Middle East and Africa; and Channel Development. Starbucks does not franchise its stores, but either own or license them worldwide.

Long term investors in Starbucks have done very well in the past 48 years. In 1987 Starbucks had a total of 17 stores and as of the most recent quarter they had just eclipsed the 30,000-unit mark which is just shy of 75% of the total number of restaurants currently held by McDonalds (NYSE: MCD) who is the company with the most food service restaurant locations in the world.

 Alex currently does not have a position in Starbucks and rates it a 4 out of 10.  We hope you enjoy the episode.

 

Welcome to StockWriteUps.com!

My name is Alex Middleton and I am from Calgary, Alberta.  I believe investing requires one to carefully study publicly available information in an attempt to develop a thesis based on reason and logic.  It also requires one to properly account for the unknown by applying probabilities and margin of safety to their thesis.  I hope you enjoy the content!

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