mtp

Am I Too Much of a Pollyanna on Starbucks?

Herb -

I agree with both you & your analyst friend. While this is a strong brand, which does have value, this stock is crumbling due to multiple contraction. It no longer is the guaranteed growth engine it used to be and so that premium as well as the growth factor are being reduced by the market.
International has promise here but currently it's a US stock with 2 strikes against it - weak economy and increasing commodity costs. Add it their moves into low end coffee, and that's lower margins to boot.

Agree with reader above, this stock would be more fairly priced $10 or lower.