Starbucks 2Q numbers - massive China growth

08-MAY-17

At the end of April we had Q2 numbers from Starbucks which missed what the market was hoping for. The result was a 1% drop in the share price, so not a huge miss. Having a look YTD, Starbucks is up 10% when the broader market is up a little over 7% so the company is still doing better than the average. Onto the numbers!


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Starbucks 1Q numbers - light on growth

27-JAN-17

Starbucks is another business that reported numbers after the bell yesterday. The headline says it all - Starbucks Reports Record Holiday and Record Q1 FY17 Results. Revenues rose 7 percent to 5.7 billion Dollars, a strong showing in both China and decent enough in the home market. What is also being highlighted is the number of US rewards memberships, which rose 16 percent to 12.9 million folks. Earnings per share grew 11 percent to 51 cents, margins increased by ten basis points, which is always good to see as a shareholder, moving in that direction. The company has a fairly generous dividend policy, 25 cents a share is the current quarterly dividend payment, up from 20 cents previously.


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Schultz shuffles over, COO holds the coffee cup now

02-DEC-16

There was the inevitable announcement that came, still Mr. Market did not take that kindly, the stock is down over three percent in the aftermarket. Starbucks Announces New Leadership Structure to Drive Next Wave of Global Growth. Howard Schultz is handing over the baton to Kevin Johnson, who is currently the Chief Operating Officer of Starbucks.


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FY numbers, store rollout continues

04-NOV-16

Starbucks reported results for their fourth quarter and full year last evening after the bell. The stock has had a pretty awful year-to-date performance, down 13 percent. Over the last decade however, the stock is up 183 percent. Coffee drinking is more than just that. For some people it is an art. Michael used to have a flatmate that took it to the nth degree, cold brewing overnight. Some people grow tomatoes, some people brew their own beer, some people roast their own coffee beans.


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Starbucks 3Q 2016 numbers - strong store rollout

25-JUL-16

At the end of last week we had 3Q numbers from Starbucks, which missed some analyst estimates. To say that they missed estimates is not to say they had a poor quarter, they still grew revenues by 7.3% to $5.24 billion and grew EPS by 24% (not too shabby hey nige).


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Starbucks 2Q numbers - good growth in China

25-APR-16

Last Thursday night we received second quarter results from Starbucks. But before we delve into the numbers let us look at some of the hype created here in South Africa after the first Starbucks was opened in Rosebank. Check out the SAStarbucks twitter account for some pictures of the opening. Apparently there were queues until the early hours of the morning and there still are. The brand strength is incredible and the drive for quality coffee, especially in developing markets is growing like China (that analogy should be used more often, no, China is not finished, as you will no doubt see in the numbers below).


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Starbucks 1Q numbers

25-JAN-16

Starbucks reported numbers Thursday evening, after the US market closed. The headline from their Investor Relations page says: Starbucks Delivers Record Q1 Revenues and EPS. Many others that I read suggested that a miss and guidance lower would weigh on the stock. It did initially, pre market the stock was down three percent, that however didn't last for too long, the stock ended the Friday session up one-quarter of a percent. And to think that in the August washout the stock traded in the low 40 Dollars, currently (in the recent washout) the stock is a whisper away from 60 bucks, pretty close to the all time highs of 64 Dollars.


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Starbucks full year numbers

30-OCT-15

Starbucks, one of the Vestact recommended stocks, reported numbers post the market close last evening. It was a meet, in terms of what matters for the people who suffer from quarteritis. Quarteritis is a disease whereby you judge a company purely on the metrics of what the market analysts expect the company to earn. And you can make a sweeping statement like, they had an excellent quarter, what a stock, or rubbish quarter, rubbish stock. Eddy Elfenbein captured it perfectly in his Friday morning message, where he quoted the doyen of index investing, Jack Bogle: "The stock market is a giant distraction to the business of investing." We try and stress many times that we own companies, not share prices. The share price represents the prospects at any one given time, whether you are an investor, speculator, stapler, trader, or whatever you call yourself, that is the price and that is what someone is willing to pay. Bogle is right, at times it seems nuts.


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Starbucks 3Q numbers

24-JUL-15

Starbucks. Coffee. Love it. Everyone started somewhere, as we pointed out, the company started with one store in Seattle, Washington State all the way across on the West Coast of the US in 1971, by the time they listed 21 years later in 1992, they had only 165 odd stores. Currently there were 22,519 stores as at the end of the last quarter, a total of 431 net store openings in the last quarter.


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Coffee. Addictive. Profitable.

29-APR-15

Starbucks is synonymous with Coffee. Coffee is the only day time legal (or illegal for that matter) drug that nobody looks at funny. In fact, they are envious of where you got that organic hazelnut skinny latte. Results from the coffee giant were released last week: Starbucks Delivers Record Q2 Revenue and EPS. Second quarter revenues rose 18 percent to 4.6 billion Dollars, GAAP operating income increased 21 percent to 778 million Dollars, EPS on a share split adjusted basis (a 2 for one split happened on the 18th of March) grew 18 percent to 0.33 Dollars. Remembering that the share price is around 50 Dollars now.


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Starbucks first quarter earnings

25-JAN-15

Last night after hours we received earnings from Starbucks for their first quarter of the financial year. The numbers look good and the share price shot up 5% after hours. Lets look at the numbers.


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Starbucks update

08-DEC-14

Almost every young reader would have come across Willy Wonka, the story involving the weird owner of a factory, penned by Roald Dahl and titled "Charlie and the Chocolate Factory". Howard Schultz is not Willy Wonka, rather the CEO of Starbucks, he did however speak like the legendary fictitious chocolate maker, when the company debuted the new flagship store known as the Roastery, check the story from Time: Go Inside Starbucks' Wild New 'Willy Wonka Factory of Coffee'. Check out the official release from the company: The First Customers (and First Orders) in Starbucks Reserve Roastery and Tasting Room. Explore the pictures, it looks awesome. In other news related to the coffee company, this is awesome: Starbucks to let you preorder from your iPhone next year. We continue to add to this fast growing and exciting company.


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In search of the perfect cup of Joe

31-OCT-14

Last night we received fourth quarter and full year results from Starbucks. Lets analyse the full year numbers. Revenues increased 11% for the year to end at $16.4bn. Global comparable sales increased 6%. This equated to operating income of $3.1bn and an operating margin of 18.7%. Earnings per share came in at $2.71. The company opened 1599 store in the year.


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Starbucks goes bigger in Japan

26-SEP-14

Starbucks announced, and you can read it on the Investor relations segment of their website that they were buying the remaining 60.5 percent of Starbucks Japan, that they do not own, via a two-step tender offer process the release says. Japanese law apparently. Japan is Starbuck's second biggest market after their home market, they have been in Japan since 1996 with their partner Sazaby League, now with over 1000 stores and providing active employment for 25 thousand folks. Wow. That is pretty big, the shops must be sizeable, people must pay more in the stores than in other places. Why do I say that? Starbucks in Japan has their fourth largest store footprint, second largest by sales, higher margins as a result of bigger orders!


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Coffee is a great product

25-JUL-14

Last night we received Q3 results from one of my favourite companies listed in New York, Starbucks. Before we delve into the numbers here is an extract from an article I read titled 3 reasons it's hard to hate Starbucks.


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