Starbucks cards: Easy gift for consumers, cash cow for the company

Apparently a Starbucks (SBUX) gift card isn't the most original gift to give during the holiday season with the company reporting that one in every ten Americans received the coffee card last year.

In a single day right before Christmas last year, 2M Starbucks cards were purchased in the U.S. and Canada. Starbucks expects an even bigger rush to stores this year to pick up the item.

Overall, the program has seen $16B loaded on 450M cars in 27 different countries.

For those keeping track, Starbucks doesn't book the revenue off the cards until down the road when customers use them at store, but all that cash is available to the company.

From other sites
Comments (7)
    , contributor
    Comments (5172) | Send Message
    A continued Brilliant move !


    Long SBUX
    17 Dec 2013, 09:14 AM Reply Like
  • Johann Galt
    , contributor
    Comments (248) | Send Message
    The only reason I bought a $5 gift card- for my wife, was the $5 credit to my card. In other words- a 50% discount! Of course, we burned those in 2 consecutive days . . .
    17 Dec 2013, 09:26 AM Reply Like
  • PeteCal
    , contributor
    Comments (90) | Send Message
    17 Dec 2013, 09:41 AM Reply Like
  • civ-e
    , contributor
    Comments (705) | Send Message
    once a coffee drinker "registers" their card, sbux has a lock on him/her.
    17 Dec 2013, 11:40 AM Reply Like
  • jackooo
    , contributor
    Comments (1738) | Send Message
    Overall, the program has seen $16B loaded on 450M cars in 27 different countries.
    I think it is cards, not cars???
    17 Dec 2013, 01:19 PM Reply Like
  • Big Apple Insider
    , contributor
    Comments (4) | Send Message
    Promotions - free drinks/food/points may drive crowds on slow days. Last weekend I got coupon for a buy one, get one free sandwich
    17 Dec 2013, 01:45 PM Reply Like
  • colinballard
    , contributor
    Comments (2) | Send Message
    Plus the repeat issue of 1,000 handmade, laser-etched, steel cards at $450 each:


    That is another $450,000 interest-free loan
    17 Dec 2013, 03:26 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs