I confess, with the leniency granted at every Starbucks I've ever patronized, I'm not worthy. I mean, to sit, sip an iced tea, eat my Subway foot-long and do some work for an hour, there's no place more suitable than Starbucks. And there's no place else that allows it, not in the area where I need to be every afternoon. I would feel less guilt about my electricity use and prolonged stays if I actually invested in SBUX. But I don't. I want to see proof of revenues coming in from new streams, or rather, new locations. Otherwise, SBUX has a frothy price for my taste, without the gargantuan growth rate that I get from other younger, fresher stocks.
Smart Money Faceoff Review: Starbuck's Coffee
BULL CASE: Sharon Zackfia
Sales growth will continue to be solid due to new breakfast & lunch offerings and international expansion (profitability in China is better than U.S.) Store count is expected to double in 5 years.
BEAR CASE: Mark Coffeit
Discretionary spending is slowing, and “I can’t think of anything more discretionary than a morning cup of coffee.”
There's more, so check out the link. And there's also Georges Yared, one of my favorite bull market writers. He's been dead on right about Crocs and Apple, but he continues to push the "Go" button on SBUX.
Starbucks: It's coming back, and I know why
One dominating trait of successful growth companies is the development of a solid and contagious culture. Starbucks has a great and enviable culture; a culture fostered by Schultz, who considers all Starbucks staff "partners" rather than employees.
Maybe I'm just spoiled, but I'm used to seeing Yared write about numbers and offering strong evidence about a company's future growth. In this post, he offers ... a rah-rah story devoid of any empircal evidence whatsoever.
Think I'll stick to the unsweetened green ice tea. I can't stomach buying SBUX. Still.
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