Coffee, Cows & Corn All Hurting Starbucks
Coffee, Cows & Corn All Hurting Starbucks
(via valueplays.blogspot.com)
Starbucks recently met its expected earnings number of 19 cents per share, representing 18% earnings growth. Great, right? But does that make it worth paying 36 times earnings? I'd say no.
Let's look closer. In the first quarter of 2007, Starbucks (SBUX) bought back $50 million worth of stock. In the second quarter, that number exploded to $513 million, or 17.1 million shares. This represented 2.1% of diluted outstanding shares and was the reason Starbucks met expectations. After all the negative publicity recently, a miss would have led to a share sell-off and more stories about the "end of the line"
I don't know if I find it
I don't know if I find it entertaining or appauling that even when their shares are at their 1 year lows, they are still pretty damn expensive, considering the fact that management seems to have the attitude that the brand alone will keep growth growing at an astronomical clip. Maybe Howard wants to take more of an active role at his company?
great article. I used to
great article. I used to work in coffee industry and milk is important,maybe more than coffee. Don't really like SBUX from coffee quality standpoint,consumer reports has put others like Dunkin Donuts and Caribou ahead on previous reports,SBUX doesn't feature light roasts as well as competitors. Italian sizes,tall for small?,grande etc. add to brand but are stupid. SBUX is cheap to me if it sells for its growth rate. And why haven't they utilized technology with computer screens for orders? right on