Invest Well in Starbucks Stock: Products, Dividend, Financial Statements, and More
2024-04-07 updated
When making long-term investments to ensure stability through diversified investments, it is recommended to prioritize ETFs that include Starbucks stocks. However, there might still be individuals who wish to invest directly in Starbucks stocks. Shall we also explore a value investing approach to assess whether Starbucks's performance will grow in the long term?
Q. What products and services does Starbucks provide?
Starbucks is a coffee specialty company that offers coffee beverages and a variety of food menus. Customers can customize options like beans, syrups, whipped cream, and more for coffee beverages like Americano and latte. Thanks to Starbucks' unique store design and atmosphere, it's a popular place where many customers enjoy coffee and social activities.
- Starbucks offers a variety of beverages including cold brew, brewed coffee, espresso, frappuccino, blended drinks, tea, and more. For our beverages, customers can choose from customized options such as beans, syrups, whipped cream, and more.
- Starbucks pays careful attention to its unique store interior design and ambiance, aiming to provide customers with a comfortable and pleasant environment.
- Starbucks offers a selection of food items like pastries, cakes, and more that complement their coffee offerings.
- Starbucks sells sandwiches and salads as part of their menu.
- Starbucks sells merchandise such as mugs, tumblers, and other products.
Q. What is Starbucks's competitive advantage?
- Brand: Starbucks has a strong brand image in the coffee industry and has built trust in coffee among customers. The Starbucks brand represents high-quality coffee and beverages, a comfortable cafe environment, and friendly service.
- Global network: Starbucks has thousands of stores in many countries and regions, providing an environment where travelers and customers from other regions can easily visit.
- Customized menu: Customers can customize their drinks according to their preferences, providing customers with a personalized experience.
- Sustainability: Starbucks pursues a sustainable business model and is making efforts such as environmentally friendly product packaging, recycling efforts, and energy-efficient store operations. These environmental efforts are helping to be perceived as an environmentally friendly and ethical brand.
- Siren Order: Starbucks offers an order and payment service through a mobile app, and customers can order in advance to reduce waiting time. In addition, through the mobile rewards program, Starbucks provides discounts and special benefits to customers to increase loyalty.
- Social responsibility: Starbucks strives to strengthen its relationship with the local community and fulfill its social responsibilities, making a positive impact on the local community.
Q. Is Starbucks's executive CEO honest and competent?
Laxman Narasimhan is the CEO of Starbucks.
- He was appointed CEO of Starbucks in 2023.
- He has worked as CEO of Reckitt, a multinational consumer health, hygiene, and nutrition company.
- He joined PepsiCo and was promoted to Chief Commercial Officer (CCO).
- He has worked at McKinsey.
Q. What mission does Starbucks have for its work?
With every cup, with every conversation, with every community- Starbucks nurture the limitless possibilities of human connection.
- Craft: Starbucks delights in the rigor of the details- no matter what out job is.
- Results: Starbucks consistently achive our goals with focus, integrity, and drive.
- Courage: Starbucks embrace dificcult conversations, with respect, to make us all better.
- Belonging: Starbucks actively listen and connect with warmth and transparency.
- Joy: Starbucks take pride in ther work and have fun while doing it.
Q. Is Starbucks's financial statements healthy?
(2024년 04월 06일 기준)
Net Profit Margin
- Starbucks has earned an annual net profit equivalent to 4.35% of the current stock price.
- It's good to see that the net profit has been growing at an annual rate of 7.22% over the past 5 years.
Total Debt
- The debt is 356.99% of the annual net profit.
- It would take about 4 years for the company to repay all of its debt.
- The net profit is growing, so Starbucks can repay the debt faster.
Dividend
- Starbucks offers a 2.63% annual dividend.
- Over the past 5 years, the annual average dividend has grown by 9.57%.
- Dividends are growing, which is good.
Share Buyback
- Apple recently repurchased its own shares equivalent to 2.28% of the stock price in the past year.
- The recent share buyback amount is 107.83% higher than the 3-year average.
Q. What is Starbucks's stock performance like?
- This year's total return is -9.57%.
- 5-year mean total return is 5.34%.
Q. When is a good time to buy and sell Starbucks?
If Starbucks is healthy and growing, it will rise in the long run, so it is good to buy in installments even if you think the current stock price is a bit high. On the other hand, if you think that Starbucks is no longer healthy in the long run, you can consider selling.
PER
- Current: 23.22
- 5Y Avg: 44.93
- Current value is lower than the average, so it may be time to consider buying. However, this strategy is only recommended if you are convinced that the company will continue to be healthy and grow in the long term.
Price/Sale Ratio
- Current: 2.69
- 5Y Avg: 3.64
- Current value is lower than average so it may be time to consider buying. However, this strategy is only recommended if you are convinced that the company will continue to be healthy and grow in the long term.
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