Starbucks Corporation ($SBUX) Cautious Buy or Hold to $68 Confident Investor Rating: Fair

Company name Starbucks Corporation
Stock ticker SBUX
Live stock price [stckqut]SBUX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $72.01
Target stock price (averages with growth) $96.94
Target stock price (averages with no growth) $71.2
Target stock price (manual assumptions) $68.23

The following company description is from Reuters: http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=SBUX.O

Starbucks Corporation (Starbucks), incorporated on November 4, 1985, is a roaster, marketer and retailer of specialty coffee, operating in more than 50 countries. Starbucks purchases and roasts whole bean coffees that it sells, along with handcrafted coffee and tea beverages and a variety of fresh food items, through Company-operated stores. The Company also sells a variety of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts. In addition to its flagship Starbucks brand, its portfolio also includes Tazo Tea, Seattle’s Best Coffee, and Starbucks VIA Ready Brew. Starbucks has three operating segments: United States (US), International, and Global Consumer Products Group (CPG). Its Seattle’s Best Coffee operating segment is reported in Other with its Digital Ventures business. As of October 2, 2011, the Company operated 9,031 stores and 4,776 licensed stores. During the fiscal year ended October 2, 2011 (fiscal 2011), in the United States, 49 Company-operated stores were opened, and 51 were closed. Internationally, 180 Company-operated stores were opened, and 36 stores were closed. In October 2010, the Company acquired Magic Johnson Enterprise’s remaining 50% interest in Urban Coffee Opportunities. In November 2011, the Company acquired Evolution Fresh, Inc.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

 

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