Starbucks Story

SBUX -- USA Stock  

USD 90.25  1.31  1.43%

Macroaxis News
By Nathan Young

When you think of the fast drink industry, there are a few companies that come to mind and Starbucks is certainly one of them. Starbucks has begun to innovate and attract new customers with their pre-ordering options and their very artistic new drinks. Dunkin Donuts is essentially their main competitor, selling similar style drinks and products that appeal to the same group of people.

Starbucks Is the Leader in the Fast Drink Space and Continues to Innovate

The issue many people seem to have with Starbucks is their products are expensive compared, yet that has not stopped people from consuming their products. With that in mind, Starbucks has innovated and continued to give people reasons to return to their stores. With the addition of ordering ahead, that has certainly smoothed out since the initial launch and seems to be working well.

Taking a peak at the stock chart using the monthly time frame, we can see that price has done nothing but increase recently, giving investors a healthy return. Coffee is one item that many people are addicted too and many get stuck in a pattern of getting coffee every day. As long as Starbucks can continue to save people time, their stock chart should continue to appreciate.

Some of the risks associated with investing in Starbucks is a general economic slow down, because people will cut back if they fear their wages or working hours are in jeopardy. Secondly, since this is a food product, they have to maintain the highest quality possible because people will stop coming as often if they feel unsafe consuming their products. Lastly, brand image is important because many people can spot this brand from a mile away and it is known worldwide. If something were to affect the brand, it could cost them in the future.

With all of that being said, you have to look at this company yourself and figure out if it is a fit for your current portfolio. I would take a good long look at the others in this space because there could be something else that provides greater value. Look at the fundamentals and see if they have a forward looking plan and see if it aligns with what you believe in. People will always need their coffee and will get it one way or another. If you get stuck in your research, consult an investing professional and they can help to point you in the right direction. Starbucks has mastered brand image and product placement and continues to execute to this day. Until something crazy happens, I’m sure Starbucks will remain in their current position in the market and only grow larger.

Starbucks Revenue

Payment of 3712 shares by John Culver of Starbucks subject to Rule 16b-3

Starbucks Corporation insider trading alert for payment of common stock by John Culver, group pres Int'l & Channel, on September 19, 2019. This event was filed by Starbucks Corp with SEC on 2018-07-18. Statement of changes in beneficial ownership - SEC Form 4. John Culver is currently serves as group president of china and asia pacific, channel devel. (cpg) and emerging brands of Starbucks [view details]   

About Contributor

Nathan Young
   Nathan Young is a Senior Member of Macroaxs Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States. View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Starbucks Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

Current Ratio

Current Ratio Comparative Analysis

Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Also please take a look at Starbucks Hype Analysis, Starbucks Correlation and Starbucks Performance. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.