|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.
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.
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]|
|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|