Discussion in 'Stocks' started by dealmaker, Jun 11, 2017.
Their gross margin has been very stable and unchanged since 2008... I think SBUX is a low growth stock. Good good stock to keep for regular income.
Their PE ratio confirms my view...since 2014, it's flat ...
SBUX is only 6 or 7% of the entire coffee market, they can grow more...
"In February, the company ceded market share to other chains, according to data from xAd Inc., a research firm that uses location signals from mobile phones to measure customer traffic. Starbucks’ share declined to 11 percent among the U.S. restaurants tracked by xAd, down from 12 percent in January."
I wouldn't go to McCafe to buy a coffee (although I do very occasionally) lol. Their baristas are really bad...imho, SBUX's main competitors are not other coffee brands. Their main competitors are private restaurants/cafe.
So what SBUX's doubting with their products? That's a big question to make threats into opportunity. With their current products (e.g. expensive Muffins, sandwitches etc), I don't see much growth in their profit...
Simply put, SBUX has been innovative enough with their products. Unless they do something that McDonalds always do - innovation in their products/promotions, I only see them as a low growth stock - but it's not bad at all. At least, they will bring regular dividend income but I wouldn't buy their stock at the current price though
imho Low growth stock should be priced below $20...
SBUX still does not have organic coffee. Their coffee tastes like burnt metal & is way to hot. In a pinch If I can't find organic coffee from a local shop that roast their own beans on-site like quality shops do, I will get it from Mc Ds - tastes much better & free refills.
Haven't had Starbucks in a decade. Gave up Starbucks for Peet's, Peet's for Blue Bottle and Blue Bottle for Graffeo's, one of the benefits of living in the Bay. Only had MCD's coffee once.
Let me guess, you only buy organic, shop at Trader Joe's or Whole Foods, wear ironic sunglasses, rolled up shorts or pants, rebuff the establishment despite being able to afford Whole Foods and probably voted Democrat.
Don't be a MORON and bring politics into a coffee thread?
I am not bringing in politics, I am bringing in money. This isn't a coffee thread, it is a financial thread about coffee. As such, I just couldn't see your "monetary" or "financial" reasoning for liking Peet's over SBUX. It seemed to me that you like Peets just because it wasn't mainstream.
Are you saying that you don't like the coffee but think SBUX is a fiscal sound company? Or, are you saying that you prefer Peet's to SBUX because you don't think SBUX is a fiscally sound company?
It is pretty evident that most people who don't like SBUX tend to be more hipster. There is anything wrong with hipster per se, I was just "taking the piss" as the Brits say.
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