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Starbucks Corporation (SBUX)

  • Sat, Feb. 14, 10:13 AM
    • Craft soda is starting to become a trend to watch closely, according to industry insiders.
    • Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
    • The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
    • The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
    • Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
    • What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
    • Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
    • Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA,  FIZZ.
    | Sat, Feb. 14, 10:13 AM | 24 Comments
  • Sep. 23, 2014, 5:28 PM
    • Starbucks (NASDAQ:SBUX) is acquiring the 60.5% of Starbucks Coffee Japan (OTC:STBJF) it doesn't own from JV partner Sazaby League in a 2-stage deal valued at ¥99.5B ($913.5M). The JV was formed in 1995, and now runs over 1K stores.
    • Through a tender offer, Starbucks will pay ¥965/share for Sazaby's 39.5% stake. Once the deal has closed, a tender will be launched for the 21% stake held by public shareholders/option holders at a price of ¥1,465/share (a 4.7% premium to Monday's close). The deals are expected to be completed during 1H15.
    • Starbucks expects the purchase to be slightly accretive to FY15 (ends Sep. '15) results on an adjusted basis. The company asserts the deal "positions Starbucks to accelerate growth across multiple channels in Japan, including the potential introduction of new concepts, such as Teavana."
    | Sep. 23, 2014, 5:28 PM | 2 Comments
  • Aug. 25, 2014, 8:03 AM
    • A strategic reason for Burger King Worldwide (NYSE:BKW) to snap up Tim Hortons (NYSE:THI) is the potential for the company to use its deep global development experience to help the coffee chain grow in new global markets
    • That plan could see Tim Hortons compete against Starbucks (NASDAQ:SBUX) in more regions, including a deeper foray into the U.S.
    • Shares of Tim Hortons (THI) are flying in premarket trading, up 17.6%.
    | Aug. 25, 2014, 8:03 AM | 1 Comment
  • May 14, 2014, 7:55 AM
    • SodaStream (SODA) is in focus after a stumble in the U.S. drives home that the company is having some trouble penetrating the region to the same degree as other markets.
    • Guidance from SodaStream is for a FY14 revenue to increase by 15% to $647.11M vs. $639.3M consensus.
    • The company sees FY14 net income improving by 3% Y/Y to $42M.
    • What to watch: Weakness by SodaStream in the U.S. is almost sure to drive out more speculation on a major beverage player buying out the Western Europe juggernaut. Pepsico (PEP) and Starbucks (SBUX) top the list.
    • SodaStream earning call webcast 7:30 EST.
    • SODA -3.3% premarket
    | May 14, 2014, 7:55 AM | Comment!
  • May 9, 2013, 7:19 AM
    A dual appearance by the CEOs of the Starbucks (SBUX) and Green Mountain Coffee Roasters (GMCR) on CNBC gives a good indication of the expected synergies between the coffee players in areas of distribution and international expansion which spurred the new 5-year deal. Is Starbucks (SBUX) considering making a bid to buy Green Mountain Coffee Roasters (GMCR)? A good tap dance from Starbucks' Howard Schultz (video). Premarket: SBUX +0.9%, GMCR +17.7%.
    | May 9, 2013, 7:19 AM | Comment!
  • Apr. 2, 2013, 4:32 PM
    Starbucks (SBUX) sells its remaining 18% stake in its Mexican business to JV partner and local restaurant owner Alsea. As part of the deal, Alsea has obtained exclusive rights to operate Starbucks shops in Mexico for the next 14 years, with an option to extend its rights for another 10. Terms are undisclosed.
    | Apr. 2, 2013, 4:32 PM | 3 Comments
  • Nov. 29, 2012, 5:18 PM
    Harvard bets on the Starbucks (SBUX) acquisition of Teavana going through, disclosing it purchased 5.77% of the outstanding shares of TEA after the Nov. 14 merger announcement. (13D)
    | Nov. 29, 2012, 5:18 PM | 1 Comment
  • Nov. 14, 2012, 3:28 PM
    More on the Starbucks (SBUX) - Teavana (TEA) deal: The company says it will add a high-profile neighborhood concept to the Teavana brand's footprint in U.S. malls coast to coast. With the Tazo business already under its corporate umbrella, Starbucks says a two-two-tiered market position will be created. But is tea really the new coffee in the U.S. or is this an international play by Starbucks? Post-deal: SBUX -2.3%, TEA +52.2%.
    | Nov. 14, 2012, 3:28 PM | 1 Comment
  • Nov. 14, 2012, 3:08 PM
    Starbucks (SBUX -1.8%) confirms it will buy Teavana (TEA +27.5%) for $15.50 a share. The company expects the deal to be accretive to 2013 earnings by a penny a share. An interesting side note is that Teavana was taken public just 16 months ago by Goldman Sachs and Bank of America at $17 bucks a share.
    | Nov. 14, 2012, 3:08 PM | Comment!
  • Jul. 23, 2012, 9:06 AM
    Peet's Coffee (PEET) is being acquired by German holding company Joh A. Benckiser for $73.50/share in cash, or $1B. The price represents a 28.6% premium to Peet's Friday close. Shares are halted. SBUX -3.1%, lower with the market. GMCR +5.4%. JVA +16.4%. DNKN could also be volatile.
    | Jul. 23, 2012, 9:06 AM | 8 Comments
  • Jun. 28, 2012, 2:31 PM
    Starbucks (SBUX -2.5%) buying Green Mountain Coffee Roasters (GMCR -0.8%) makes sense to The Motley Fool based on the emerging strategic fit between the two companies. Even allowing for a hefty premium - say $30 - a SBUX-GMCR deal goes off at a reasonable valuation in a merger that would give the combined company the muscle to outlive worries over K-Cup revenue and patent expirations as the single-cup market matures.
    | Jun. 28, 2012, 2:31 PM | 9 Comments
  • Jun. 4, 2012, 7:40 PM
    Panera Bread (PNRA) slips in after hours trading following Starbucks' (SBUX) announcement that it was picking up La Boulange parent company Bay Bread. Although SBUX didn't specifically say it was making a run at PNRA, the writing is definitely on the wall. Panera has been at the top of this sector for a long time now, and a cut of its market would be a tasty target for a heavyweight competitor the likes of Starbucks. PNRA -1.6%, SBUX -2.4% AH.
    | Jun. 4, 2012, 7:40 PM | 2 Comments
  • Jun. 4, 2012, 4:15 PM
    Starbucks (SBUX) is buying Bay Bread, owner of the La Boulange bakery chain, for $100M in cash. The company plans to introduce La Boulange's pastries and breads to its U.S. coffee shops, while also expanding La Boulange's own U.S. retail presence. Starbucks expects the deal to dilute 2H12 EPS by $0.02. SBUX -2.4% AH. GMCR -2.6%. (previous)
    | Jun. 4, 2012, 4:15 PM | 10 Comments
  • Apr. 16, 2012, 10:39 AM
    Teavana (TEA +3.1%) agrees to acquire the assets of Teaopia, a mall-based specialty tea retailer in Canada, for $26.9M in cash. Its impact to earnings is expected to be neutral in FY 2012, excluding transaction and integration expenses, and accretive by $0.03-$0.04 in FY 2013.
    | Apr. 16, 2012, 10:39 AM | Comment!
  • Nov. 10, 2011, 3:37 PM
    Shares of Jamba (JMBA +1.1%) shrug off Starbucks' (SBUX +1.3%) purchase of Evolution Fresh - seemingly undaunted by SBUX's plan to open juice bars in the U.S. starting in early to mid-2012. Jamba announced yesterday that it will open up 40-50 new U.S. stores and 10-15 new international, which now takes on added significance with a larger rival in its space.
    | Nov. 10, 2011, 3:37 PM | Comment!
  • Nov. 10, 2011, 1:23 PM
    Starbucks (SBUX +1.3%), whose shares are unscathed by partner Green Mountain's (GMCR -37.1%) day of infamy, announces it's acquiring Evolution Fresh, a maker of premium fruit, vegetable, and protein juices, for $30M. Starbucks, which will distribute Evolution's juices in its stores, says the deal is part of an initiative to "build a national Health and Wellness brand."
    | Nov. 10, 2011, 1:23 PM | 1 Comment
SBUX vs. ETF Alternatives
Company Description
Starbucks Corp is the roaster, marketer & retailer of specialty coffee in the world, operating in 65 countries. It sells a variety of coffee & tea products. It sells goods and services under brands under Teavana, Tazo, Seattle's Best Coffee, etc.
Sector: Services
Country: United States