Starbucks Stock
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Transcript of Starbucks Stock
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Starbucks
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Presented By
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Established in 1971 at Seattle, Washington
Famous for its quality fresh-roasted coffee beansand stylish atmosphere. Over 9,000 stores worldwide Product lines include :
beverages (coffee, Tazo tea, soda, juices)
pastries whole coffee beans coffee-related hardware and equipment merchandise (mug, CDs)
Overview
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1971 Starbucks Coffee, Tea, and Spice store (coffee bean roasting)opened in Seattles Pike Place Market.
1982 Howard Schultz joined Starbucks.
1986 Howard Schultz established Il Giornale Coffee Company.
1987 Il Giornale acquired Starbucks and changed the name intoStarbucks Corporation.
1992 Starbucks decertified the union and made IPO.
1995Starbucks Coffee International opens in Japan Starbucks implemented ESOP.
Timeline
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Timeline
1996Starbucks began selling bottled Frappuccino.
1999 Starbucks acquired Tazo Tea.
2000 Acquired Hear Music, a San Francisco-based company
2003Starbucks acquired Seattles Best Coffee
2005 Introduced Starbucks Coffee Liqueur; Acquires Ethos Wate
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Net revenue 2011
2011 2010 2009
11.700.400 10.707.400 9.774.600
Q1 Q2 Q3 Q4
2950,8 2785,7 2932,2 3031,9
2011 (mln)
9,3%
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Stores
0
2000
4000
6000
8000
10000
12000
14000
Americas CAP EMEA (EU,Middle
East and Africa)
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
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Current Ratio
Current assets/Current liabilities
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2010 2011
Current Ratio
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Dividend Per share
0.00
0.02
0.04
0.060.08
0.10
0.12
0.14
0.160.18
First quarter Second quarter Third quarter Fourth quarter
The quarterly cash dividend per share ofStarbucks
2010
2011
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1,000new storesin 2012
Learning & Growth Quality employees More recipes created
Financial Net Income Same store salesEarnings per share
Customers Increase core group
Support shade growth Sustainability guide
Operations New store growth Efficiency Source: coffee beans
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SWOT Analysis
Strengths Weaknesses
1. Brand name recognition2. Quality Products3. Potential Internal Strengths
4. Good Marketing Skills5. Location6. Visionary leader7. Distribution8. Manufacturing competencies
1. Non-pioneer in global market2. Narrow Product line3. Complicated Products
Opportunities Threats
1. Expand into Foreign Markets2. Widen Product Range3. Diversify into new Growth
Businesses4. Apply brand name capital in new
areas
1. Change in consumer tastes2. City regulations3. Increase in domestic competition4. Changes in economic factors5. Downturn in economy
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Earning Per Share
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Growth Rates
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Share Price Forecast
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Reasons to be bullish
A strong levered free cash flow of $770 million
A good quarterly revenue growth of 14.7%
Net income soared from $391 million in 2009 to $1.24billion in 2011.
Sales increased from $9.7 billion in 2009 to $11.7billion in 2011.
Annual EPS from $.87 in 2007 to $1.52 in 2011
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Reasons to be bullish
A manageable payout ratio of 42%
It has strong institutional support, % held by institutionsis 78%
A projected 3-5 year EPS growth rate of 17.7%
Projected growth rates of 21.29% & 25.2% for 2012 and2013 respectively.
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Stock Performance
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Stock Performance
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Technical Analysis
Current Market price ..52.50
50-Day moving avg.46
100-Day moving avg.39 1stSupport@ 50-51
2nd Support@46-47
2nd Resistance@55
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