Current Price: $97.66
Market Capitalization: $110.66B
PE Ratio (TTM): 27.35
Revenue (TTM): $36.48B
Earnings per Share (EPS): $3.57
Gross Profit: $10.05B
Net Income: $4.07B
Forward Dividend & Yield: $2.44 (2.50%)
Operating Cash Flow (TTM): $6.5B
Levered Free Cash Flow (TTM): $2.57B
Profit Margin: 11.16%
Operating Margin: 15.84%
Return on Assets (ROA): 11.71%
Current Ratio: 0.89
Collaborations and Partnerships.
Partnership with Nestlé: Starbucks continues to expand its global reach through its collaboration with Nestlé, which holds the global license to sell Starbucks packaged coffee and tea products.
Sustainability Initiatives: Starbucks is partnering with various sustainable farming and environmental organizations to meet its 2030 goals of reducing carbon emissions and promoting ethical sourcing.
Delivery and Digital Expansion: Starbucks is further integrating with delivery platforms such as Uber Eats, bolstering its digital presence with mobile app developments.
Partnership with DoorDash: This partnership, which aims to enhance delivery operations across more U.S. locations, continues to gain traction, supporting Starbucks' focus on convenience for customers.
SWOT ANALYSIS
Strengths:
Strong Brand Recognition: Starbucks is a globally recognized brand, often regarded as a symbol of high-quality coffee and a premium experience.
Solid Financial Performance: The company shows consistent revenue growth ($36.48B), with robust profitability metrics like a profit margin of 11.16%.
Global Expansion: Starbucks operates in over 80 countries and continues to expand internationally, especially in emerging markets such as China.
Innovation in Products: Starbucks has been proactive in diversifying its menu to include a wide range of beverages (e.g., plant-based options) and food items, attracting a broad customer base.
Weaknesses:
High Operating Costs: The cost of sourcing premium coffee beans, maintaining high-end stores, and employee wages puts pressure on margins.
Dependency on U.S. Market: Despite international expansion, Starbucks derives a significant portion of its revenue from the U.S., making it vulnerable to economic slowdowns in the domestic market.
Current Ratio (0.89): The lower current ratio shows potential liquidity issues, as the company may struggle to cover its short-term liabilities.
Opportunities:
Digital and Delivery Growth: With the rise of online orders and delivery services, Starbucks has the opportunity to further capitalize on these trends. Its collaborations with Uber Eats and DoorDash can help expand delivery reach.
Emerging Markets: Starbucks has significant room for growth in emerging markets like China and India, where the coffee culture is still developing but rapidly growing.
Sustainability Initiatives: Starbucks' focus on ethical sourcing, waste reduction, and eco-friendly initiatives positions it well to appeal to environmentally conscious consumers.
Threats:
Economic Slowdowns: Economic recessions or slowdowns in major markets like the U.S. or China could negatively impact consumer spending on premium products like Starbucks coffee.
Competition: Intense competition from both local coffee shops and international brands such as McDonald's and Dunkin' poses a threat to Starbucks' market share.
Supply Chain Issues: Starbucks relies on a global supply chain for sourcing coffee, which exposes it to geopolitical risks, commodity price fluctuations, and logistical challenges.
Summary:
Starbucks remains a strong player in the global coffee industry, with solid financials and growing international reach. The company's ability to innovate through digital platforms, delivery services, and sustainable practices provides it with growth opportunities. However, it faces risks from economic fluctuations and competition, and its current ratio indicates potential short-term liquidity concerns. Despite these challenges, Starbucks' strong brand and partnerships position it well for future growth.
Market Capitalization: $110.66B
PE Ratio (TTM): 27.35
Revenue (TTM): $36.48B
Earnings per Share (EPS): $3.57
Gross Profit: $10.05B
Net Income: $4.07B
Forward Dividend & Yield: $2.44 (2.50%)
Operating Cash Flow (TTM): $6.5B
Levered Free Cash Flow (TTM): $2.57B
Profit Margin: 11.16%
Operating Margin: 15.84%
Return on Assets (ROA): 11.71%
Current Ratio: 0.89
Collaborations and Partnerships.
Partnership with Nestlé: Starbucks continues to expand its global reach through its collaboration with Nestlé, which holds the global license to sell Starbucks packaged coffee and tea products.
Sustainability Initiatives: Starbucks is partnering with various sustainable farming and environmental organizations to meet its 2030 goals of reducing carbon emissions and promoting ethical sourcing.
Delivery and Digital Expansion: Starbucks is further integrating with delivery platforms such as Uber Eats, bolstering its digital presence with mobile app developments.
Partnership with DoorDash: This partnership, which aims to enhance delivery operations across more U.S. locations, continues to gain traction, supporting Starbucks' focus on convenience for customers.
SWOT ANALYSIS
Strengths:
Strong Brand Recognition: Starbucks is a globally recognized brand, often regarded as a symbol of high-quality coffee and a premium experience.
Solid Financial Performance: The company shows consistent revenue growth ($36.48B), with robust profitability metrics like a profit margin of 11.16%.
Global Expansion: Starbucks operates in over 80 countries and continues to expand internationally, especially in emerging markets such as China.
Innovation in Products: Starbucks has been proactive in diversifying its menu to include a wide range of beverages (e.g., plant-based options) and food items, attracting a broad customer base.
Weaknesses:
High Operating Costs: The cost of sourcing premium coffee beans, maintaining high-end stores, and employee wages puts pressure on margins.
Dependency on U.S. Market: Despite international expansion, Starbucks derives a significant portion of its revenue from the U.S., making it vulnerable to economic slowdowns in the domestic market.
Current Ratio (0.89): The lower current ratio shows potential liquidity issues, as the company may struggle to cover its short-term liabilities.
Opportunities:
Digital and Delivery Growth: With the rise of online orders and delivery services, Starbucks has the opportunity to further capitalize on these trends. Its collaborations with Uber Eats and DoorDash can help expand delivery reach.
Emerging Markets: Starbucks has significant room for growth in emerging markets like China and India, where the coffee culture is still developing but rapidly growing.
Sustainability Initiatives: Starbucks' focus on ethical sourcing, waste reduction, and eco-friendly initiatives positions it well to appeal to environmentally conscious consumers.
Threats:
Economic Slowdowns: Economic recessions or slowdowns in major markets like the U.S. or China could negatively impact consumer spending on premium products like Starbucks coffee.
Competition: Intense competition from both local coffee shops and international brands such as McDonald's and Dunkin' poses a threat to Starbucks' market share.
Supply Chain Issues: Starbucks relies on a global supply chain for sourcing coffee, which exposes it to geopolitical risks, commodity price fluctuations, and logistical challenges.
Summary:
Starbucks remains a strong player in the global coffee industry, with solid financials and growing international reach. The company's ability to innovate through digital platforms, delivery services, and sustainable practices provides it with growth opportunities. However, it faces risks from economic fluctuations and competition, and its current ratio indicates potential short-term liquidity concerns. Despite these challenges, Starbucks' strong brand and partnerships position it well for future growth.