Starbucks Corp. (SBUX)
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SBUX Forum Topics
- All Comments on SBUX
- General Discussion on SBUX
- Nine Months Later: Some Annual Predictions from the Financial Press [view article]
- Rumors of Jamba Juice's Demise Greatly Overstated [view article]
- Starbucks Gets Re-Caffeinated - Barron's [view article]
- Not Much to Recommend - Cramer's Lightning Round (10/3/08) [view article]
- Starbucks and Jamba Juice Sounds Like a Nice Combination [view article]
- Consumer Discretionary Firms Under Increasing Pressure [view article]
- Companies We Care About: Starbucks, Apple, Google, & Amazon [view article]
- Coffee Still Buzzing, Just Not Starbuck's [view article]
- Is a Coffee Price Breakout Imminent? [view article]
- McDonald's: Lapping the Field [view article]
- What Is Starbucks Doing Out There? [view article]
- Global Growth Trades - Fast Money Recap (9/3/08) [view article]
loading ...Recent SBUX Articles
- Consumer Discretionary Firms Under Increasing Pressure
- Starbucks Gets Re-Caffeinated - Barron's
- Rumors of Jamba Juice's Demise Greatly Overstated
- Nine Months Later: Some Annual Predictions from the Financial Press
- Companies We Care About: Starbucks, Apple, Google, & Amazon
- Coffee Still Buzzing, Just Not Starbuck's
- McDonald's: Lapping the Field
- Global Growth Trades - Fast Money Recap (9/3/08)
- Starbucks: No Raise for Schultz?
- Is a Coffee Price Breakout Imminent?
- Full List of Articles »
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Starbucks: Analyst Recommends Aggressive Buying On Overdone Investor Disappointment [view article]
I think SBUX and JMBA are two very good stocks to hold for a long term. Both have a tremendous brand appeal. At some point of time, I think SBUX will consider buying JMBA. The price at which JMBA could be acquired today is really cheap. $165 million out of which $80 million is cash in the company. So it is just $85 million out of pocked for SBUX. That is small change with its $17B market cap. Second it gives SBUX another powerful brand that it can integrate with its existing stores. Think about the cost savings and additional market opportunity it will generate for SBUX. It could become another phenomenal growth story. But for SBUX must think out of the box and do a few acquisitions. ReplyShorting Starbucks Paid Off - Time to Cover? [view article]
No alpha here, Vahan. Here's some good alpha,though: Stay away from people who cherry pick their comments for winners. You write something every few days; even a monkey throwing darts gets it right sometimes. You need to present your track record in a comprehensive fashion, not piecemeal. The "look how good I did" stories you specialize in are the worst aspect of this website. ReplyRecession Watch: It's Probably Already Here [view article]
Good points and as a Realtor for the past 26 years, I have never seen sales so slow ! It's very similar to the Reagan Years when Herb Volker raised interest rates, to the point that mortgages were at the 17-18 pct rate. ! Home sales have dropped tremendously and that affects the whole economy. Car / Truck sales are way down even with low or zero int. rates are being offered .It's time we all realized that we ARE in a recession ! LC Reply
Starbucks: Losing Traffic, Making Excuses [view article]
Over the last few years i've noticed service going by the wayside at Starbucks. Who wants to wait in line 20 minutes on the way to work. Starbucks needs to realize that people will pay a premium for a good drink only when great service comes with it. I've quit going because my commute is long enough without Starbucks adding 20 minutes. ReplyRecession Watch: It's Probably Already Here [view article]
Very salient points. Traditional media with declining revenues. Uh huh.A transport company that's challenged by high fuel costs. Hmmm.
A coffee co with shops at every street corner with problems? - What was their excuse last year - oh yeah - it was so hot that they made a lot of frozen mixed drinks that slowed down their throughput. Reply
The Starbucks Phenomenon and the U.S. Slowdown [view article]
During my times in investment banking, when I and my collegues earned megabucks, we would drink 3 - 4 SBUX coffees [always Venti] a day per person. It was bad, really bad. It almost ruined my teeth and I suffered from sweat attacks, but still we would keep on drinking the stuff on a daily basis. I haven't had a SBUX since 2002 - the day I left banking I stopped drinking coffee! I now prefer drinking tea --- in a SBUX cup! Insane? Yes, I know. ReplyThe Starbucks Phenomenon and the U.S. Slowdown [view article]
I would expect that in New York, so many people. Here in the Midwest I either have no line or perhaps a 5 min wait tops when its busy, although I have had to wait 10 mins before when they were brewing a new pot, but they gave me the coffee for free. ReplyWeinstein
The Starbucks Phenomenon and the U.S. Slowdown [view article]
I was also struck by that there in NYC... the whole pace of life slows down when residents get in those lines.But notice how many people are checking their Crackberries in line - and what about the caffeine fixes' impact on worktime productivity ;) Reply
Short Thesis on Starbucks Playing Out [view article]
Wouldn't it have been better to short SBUX in late 2006 than now? I mean, a $27.69 to $23.00 drop isn't exactly something to write about. But it's not very insightful to suggest shorting a stock that has already dropped over 50% in the last year in the hopes that it may drop another 20%.To impress us, this article should have been posted on September 27 of 2006, not 2007. Reply
Smart Money Faceoff Review: Starbuck's Coffee [view article]
Nice Job Turley. i tend to agree with your points, although I hope 26 is the low ;-)Starbucks greates asset is their employees who they treat well and who actually go to work and do a good job. It is hard to quantify this in numbers, but I have never walked out of starbucks thinking, the space or employees needed to be cleaned up. A great example is McDonalds...Only in Chicago have I been impressed with McDonalds. the rest of the time I have health concerns and double check the change I get.
I have been trying to think about how Starbucks can monetize their branding better and it is truly a difficult problem. Teaming up with Bookstores was a great idea, maybe venturing into stadiums and ballparks so we have a good alternative to beer (sorry hops lovers). I would buy their refridgerated drinks more if they had less fat and calories. Last but not least, they should move with a little more force into the energy drink market. A double shot is not exciting, but a quadruple shot calls my name loud and clear.
You are correct, people will downgrade their dinners before they give up their morning coffee, it is a small way of feeling good as people go into work, where they do not all feel good. The real question on the board for Starbucks is how do they improve the quality of their coffee so you do not want other coffee? Reply
Smart Money Faceoff Review: Starbuck's Coffee [view article]
Nice Job Turley. i tend to agree with your points, although I hope 26 is the low ;-)Starbucks greates asset is their employees who they treat well and who actually go to work and do a good job. It is hard to quantify this in numbers, but I have never walked out of starbucks thinking, the space or employees needed to be cleaned up. A great example is McDonalds...Only in Chicago have I been impressed with McDonalds. the rest of the time I have health concerns and double check the change I get.
I have been trying to think about how Starbucks can monetize their branding better and it is truly a difficult problem. Teaming up with Bookstores was a great idea, maybe venturing into stadiums and ballparks so we have a good alternative to beer (sorry hops lovers). I would buy their refridgerated drinks more if they had less fat and calories. Last but not least, they should move with a little more force into the energy drink market. A double shot is not exciting, but a quadruple shot calls my name loud and clear.
You are correct, people will downgrade their dinners before they give up their morning coffee, it is a small way of feeling good as people go into work, where they do not all feel good. The real question on the board for Starbucks is how do they improve the quality of their coffee so you do not want other coffee? Reply
Smart Money Faceoff Review: Starbuck's Coffee [view article]
Nice Job Turley. i tend to agree with your points, although I hope 26 is the low ;-)Starbucks greates asset is their employees who they treat well and who actually go to work and do a good job. It is hard to quantify this in numbers, but I have never walked out of starbucks thinking, the space or employees needed to be cleaned up. A great example is McDonalds...Only in Chicago have I been impressed with McDonalds. the rest of the time I have health concerns and double check the change I get.
I have been trying to think about how Starbucks can monetize their branding better and it is truly a difficult problem. Teaming up with Bookstores was a great idea, maybe venturing into stadiums and ballparks so we have a good alternative to beer (sorry hops lovers). I would buy their refridgerated drinks more if they had less fat and calories. Last but not least, they should move with a little more force into the energy drink market. A double shot is not exciting, but a quadruple shot calls my name loud and clear.
You are correct, people will downgrade their dinners before they give up their morning coffee, it is a small way of feeling good as people go into work, where they do not all feel good. The real question on the board for Starbucks is how do they improve the quality of their coffee so you do not want other coffee? Reply
Smart Money Faceoff Review: Starbuck's Coffee [view article]
You’re correct. I have never worked at McDonald’s or any other fast food restaurant. I understand that there are complexities involved with new product roll-outs,Mr. Coffelt stated that Starbucks should increase foot traffic and ticket price with new food offerings but the business becomes more complicated and easy to turn customer’s off.
My contention was this was weak point he gives as a reason for not buying the stock. His implication is that SBUX do more harm than good, by attracting customers and then running them off. I think the chances of that happening are remote, as I said in my article
My point was that I don’t expect SBUX or MCD to have significant issues the new offerings are a natural line extensions to their current business. It’s not like the two are getting into something vastly different than their current operations.
I agree with the fact that MCD has more experience, they have the best operations designers and engineers and they exert a great deal of effort in research and testing to deliver taste without sacrificing efficiency.
I remarked that MCD faces a similar challenge. So, that’s not a real valid argument against buying SBUX.
I also said that I felt SBUX probably could execute the roll-out better than MCD. Because the roll-out ultimately gets executed by front-line employees on the floor, not the corporate process designers and research gurus. SBUX attracts higher quality employees. They are better paid and more educated. Second, SBUX stores are corporate operated, so they maintain a high level of control over front-line operations. MCD is mostly franchised stores, and maintaining control and consistency is more difficult.
It didn’t have to look at the data here: ACSI Datahttp://theacsi.org/index.php?... Table to know that MCD is ranked last in customer service. Starbucks scored top rating. Thus, it’s reasonable to assume that a restaurant with the best customer satisfaction, meaning they do their job well, could execute a product extension better than a restaurant that can’t even manage to deliver satisfactory service currently.
Additionally, MCD get 2/3 business drive thru, and majority in the morning hour. They can service customers quickly because breakfast menu is simple, and McMuffins, Biscuits, McGriddles, can be cooked and shelved before an order is made, to be subsequently placed in an upcoming order. Steaming and frothing milk requires time, and I am not sure to what extent it’s possible to prep pre-order. But, if lattes and the specialty coffee based beverages slow up the service line, that will not be good. So these issues are why I leaned towards SBUX over MCD.
To me, this isn’t a major issue, like I said they both have challenges and both have adequate resources to be successful. It’s a part of business adapting to change and the tastes and preferences of consumers. There may be small amount of risk, but it’s already priced in.
The purpose of my article was to evaluate both arguments are provide my opinion as to which expert did a better job- providing rational and pertinent points supported with some type of factual evidence.
I felt the expert recommending not to buy wasn’t as compelling as the expert for buying SBUX
Reply
Smart Money Faceoff Review: Starbuck's Coffee [view article]
Silly article. The author clearly has never worked in a fast-food restaurant and doesn't know the operational and logistical complexities within the restaurant when new product offerings are made. McDonald's has a much more robust menu and has proven month over month for the last 52 months (or so) how good it is at managing that complexity. Starbux simply hasn't. So, McDonal'ds still poses a serious threat to Starbux because new product offering can still continue to erode their sales...and conversely their inexperience with rolling out new product offerings will prevent them from reacting fast enough for it to matter. Your author in my opinion is another example of an arm-chair quarterback. ReplyLots Brewing At Starbucks [view article]
I was just wondering if there was anyone editing these articles. I've just read two and both have spelling errors in them (once instead of ounce, new instead of knew). Reply