Finance

・  last month (October to November)

・last year (2018)

・last 5 year

It can say that the stock is stable and little bit of went up in last 5 year. Although there was a case that the number dropped a little, but it is almost stable in last year. Last month, the stock went up then it does not go down and it is roughly stable. Looking the graph of stocks through 5 years, the lowest of stock rose greatly 34.37 in 2014 to 58.06 in 2018. The highest stock is not change. However, through read the graphs, it will not be down in future.

This industry is in mature stage with a medium level concentration. Starbucks Brand make up 40% of the market share. Starbucks primarily operates and competes in the retail coffee and snacks store industry. This industry experienced a major slowdown in 2009 due to the economic crisis and changing consumer tastes, with the industry revenue in the US declining 6.6% to $25.9 billion. Before this, the industry had a decade of growth consistent. Due to the economic slump, consumers spent less on luxuries like eating out, choosing to purchase low-price items instead of high-priced coffee drinks due to shrinking budgets.3 The industry grew at a low annualized average growth rate of 0.9% from 2008 till 2013 with current industry revenues at $29 billion in the US. The industry is now forecasted to grow at an annualized rate of 3.9% over the next five years, with a potential to reach $35.1 billion revenues in the US (Strategies Analysis of Starbucks Corporation by Nithin Geereddy).

                                                                                        source1: IBIS World Report

 source2: IBIS World Report

                                                                               

The company provides the following updates to long-term financial targets;

・Annual global comparable store sales growth of 3% to 5%

・Annual consolidated net revenue growth in the high single digits

・Annual earnings per share growth of 12% or greater

・Annual ROIC of 25% or greate

Source: Starbucks Report, 2017

Each year the sale of beverages brings the most revenue for global coffeehouse chain Starbucks. The second largest contributor to Starbucks’ revenue is food sales, producing 4.4 billion of the company’s 24.72 billion U.S. dollar revenue in 2018. Then the coffee chain had a brand value of more than 44 billion U.S. dollars. In the twelve years between 2006 and 2018, Starbucks’ store numbers ballooned from 12,440 to 29,324 stores worldwide. The revenue of the coffee and snack shop industry in the United States was forecasted to exceed 32 billion U.S. dollars in 2016.

Source: Starbucks

References:

·      https://investor.starbucks.com/press-releases/financial-releases/press-release-details/2017/Starbucks-Reports-Q4-and-Full-Year-Fiscal-2017-Results/default.aspx

·      http://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf