research report starbucks

research report starbucks - Donuts The amount of growth in...

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MGT 3440 Research Report: Starbucks Ticker Symbol : SBUX Price : $24.10 52-week price range : $21.77 - $37.54 Dividend : N/A Current P/E : 23.63 Price/book : 7.80 Book value/share : $3.09 Market capitalization : $17.99 Billion Category : Large-cap Growth Summary : Starbucks is a retailer of high-end coffee. The produce and sell coffee, bottled cappuccino products, as well as a line of ice creams. They operate and sell in North America, Latin America, Europe, the Middle East, and Pacific Rim. Researcher Rating : Researchers have lowered Starbucks from a BUY rating to a HOLD rating. They believe that the stock is still strong throughout the market, but are experiencing difficulties of secondary items in their business. This means that the dairy/creamer prices have risen, and in doing so, Starbucks has been forced to raise costs to offset this. Rationale : Explained above. Risks : McDonald’s has been aggressively trying to push their coffee products on people, as is Dunkin
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Unformatted text preview: Donuts. The amount of growth in the United States has become so overwhelming; stores are actually stealing profits from one another. Management Guidance : Company management feel that they need to expand their store base in China before other competition enters the market, essentially flooding that market before any other company has a chance. EPS for FY2008 & FY2009 : $1.02 and $1.23 5-year EPS growth rate estimate : 20% Sector and Researcher Feelings : Consumer Discretionary. Researchers feel that this rating is UNDER WEIGHT, due to competition rising in United States. Jaywalk Consensus : Ranks in the industry show that Starbucks is better than 80% of the competition, while in the Sector and “Jaywalk Universe” it runs right around the middle of the pack at 52.4-53.4%....
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This note was uploaded on 04/18/2008 for the course MGT 3440 taught by Professor Gummerson during the Fall '07 term at St. Scholastica.

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