mrhockey123

Poll Shows 73% Americans Think Starbucks is Overpriced

I have to come to the defense of SBUX here as well. The coffee has NEVER been cheap, but as people have already said, it's about value proposition which is more than 1 mocha = $5 (in Canada, anyway). It's the atmosphere, the brand, and the people that work in the stores.

I have to liken SBUX's situation today to that of McD's a few years ago when "Supersize Me" came out. Everyone suddenly started to hate McD's, yet look at the massive turnaround since then.

SBUX caters to the brand-conscious people who don't mind paying more for quality. Tim Hortons and McD's coffee just isn't as good, and I can't see anyone going to Micky D's for a business meeting.

I am thinking of going long SBUX, but I want to see some support come into the stock before I jump in. Once all these store closures filter through the system, there will be much more efficiency. And if SBUX can't maintain a ridiculous growth rate, then WOW they might use money to buy back stock or pay a dividend - and what's so bad about that?