Starbucks Corporation (SBUX)
From ValueWiki
Starbucks Corporation buys, roasts, and sells whole bean coffees worldwide, primarily through its retail stores. Starbucks also licenses its trademark for retail store operations, grocery stores and warehouse club stores.[1] The Company opened 1,543 new retail stores in the first three quarters of the fiscal year, and currently operates more than 15,000 retail stores in the United States and around the world.[2]
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Snapshot
Products
The company offers brewed coffees, espresso beverages, cold blended beverages, various complementary food items, premium teas, a line of compact discs, and coffee-related accessories and equipment, including drip and French press coffeemakers, espresso machines, and coffee grinders primarily through its retail stores.[1]
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Leadership
Officers
Full list of Senior Officers from Starbucks Investor Relations
- Howard Schultz, founder and chairman
- James Donald, president and chief executive officer
- James C. Alling, president, Starbucks Coffee U.S.
- Martin Coles, president, Starbucks Coffee International
Board of Directors
Full list of Board of Directors from Starbucks Investor Relations
Salaries and Compensation
Insider Trades
Institutional Ownership
Risks and challenges
The company itself points to the following risks, among others, that it deemed material as October 2006:[3]
- A regional or global health pandemic could severely affect Starbucks business.
- Market expectations for Starbucks financial performance are high.
- Failing to meet annual targets for store openings, as a result of delays in store openings or failing to identify and secure sufficient real estate locations.
- Negative trends in operating expenses.
- Failing to penetrate and expand into emerging International markets, such as China
- Opening less productive stores or cannibalizing existing stores with new stores.
- Higher costs associated with maintaining and refurbishing the Company’s existing base of Company-operated retail stores.
- Declines in general consumer demand for specialty coffee products.
- Failing to meet customer demand efficiently during peak periods.
- Lack of customer acceptance of new products.
- Lack of customer acceptance of Starbucks products in new markets.
- Increases in the price of high quality arabica coffee, dairy products, fuel, energy or other consumables, and the Company’s inability to obtain a sufficient supply of such commodities and consumables as its business grows.
- Increased labor costs, including significant increases in health care benefits and worker’s compensation insurance costs.
- The impact of initiatives by competitors and increased competition generally.
- Starbucks is highly dependent on the financial performance of its United States operating segment.
- Starbucks is increasingly dependent on the success of its International operating segment in order to achieve its growth targets.
- The China market is important to the Company’s long-term growth prospects — doing business there and in other developing countries can be challenging.
- Effectively managing the Company’s rapid growth is challenging.
- The loss of key personnel or difficulties recruiting and retaining qualified personnel could jeopardize the Company’s ability to meet its growth targets.
Lawsuits
A monopolization lawsuit was filed against Starbucks on September 25 citing the company's "cluster-bombing" store-tactics. Specifically, the suit alleges that Starbucks opens numerous shops in a single area and buys smaller competitors to pressure local businesses. According to the suit "Starbucks frequently offers to make lease payments higher than fair market value in exchange for a property owner's agreement to prevent competitors from leasing space in the same building."
Competition
Traditionally, Starbucks competed (and thrived) against other chains offering coffee, pastries and sandwiches. Currently those include, among others, Peet's Coffee & Tea (PEET), Caribou Coffee Company (CBOU), Diedrich Coffee (DDRX), Green Mountain Coffee Roasters (GMCR), BAB (BABB), Krispy Kreme Doughnuts (KKD), New World Restaurant Group (NWRG), and Coffee Holding Co. (JVA). More recently, fast food and fast casual chains started to compete more directly with Starbucks. Some fast food chains, like McDonald's (MCD) and Dunkin Donuts have expanded into premium coffees at lower price points than Starbucks. Among the 'fast casual' chains that can also offer competition is the fast-growing Panera Bread (PNRA).
History
Starbucks was founded by Howard Schultz in 1985. The company is headquartered in Seattle, Washington.
Fundamentals
- SEC Filings
- Key Statistics Yahoo Finance
- Key Ratios at Reuters
- Dividends and Returns at Morningstar
- SEC Filings at Edgar Online
- Financial Statements Quickview at Morningstar
- Historical Prices at Yahoo Finance
- Analyst Estimates
- All Press Articles
Technical Analysis
Official Links
- Starbucks Corp.
- 2401 Utah Avenue South
- Seattle, WA 98134
- Phone: 206-447-1575
- Fax: 206-682-7570
Research Links
- Profile at Yahoo Finance
- Profile at MoneyCentral.com
- Company Events
- Earnings Estimates
- Starbucks Gossip Blog
Messsage Boards
- BoardCentral All-In-One Message Boards Search
- Investors Hub
- Investor Village
- Yahoo Finance
- ValueWiki Message Board
- ValueWiki Chat
Options
- Options Prices and Data at Yahoo Finance
- Options Prices and Data at IVolatility.com
- Call Options Data at OptionsBuddy.com
- Starbucks Option Plays
