Starbucks

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Starbucks
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Overview

• Established in 1971 at Seattle, Washington
• Famous for its quality fresh-roasted coffee
  beans
• and stylish atmosphere.
• Over 9,000 stores worldwide
• Product lines include
• - beverages (coffee, Tazo tea, soda, juices)
• - pastries
• - whole coffee beans
• - coffee-related hardware and equipment
• - merchandise (mug, CDs)

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Timeline

• 1971 Starbucks Coffee, Tea, and Spice store
  (coffee bean roasting)
• opened in Seattles Pike Place Market.
• 1982 Howard Schultz joined Starbucks.
• 1986 Howard Schultz established Il Giornale
  Coffee Company.
• 1987 Il Giornale acquired Starbucks and changed
  the name into
• Starbucks Corporation.
• 1992 Starbucks decertified the union and made
  IPO.
• 1995 Starbucks Coffee International opens in
  Japan
• - Starbucks implemented ESOP.

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Timeline

• 1996 Starbucks began selling bottled
  Frappuccino.
• 1999 Starbucks acquired Tazo Tea.
• 2000 Acquired Hear Music, a San Francisco-based
  company
• 2003 Starbucks acquired Seattles Best Coffee
• 2005 Introduced Starbucks Coffee Liqueur
  Acquires Ethos Wate

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Net revenue 2011
2011 2010 2009
11.700.400 10.707.400 9.774.600
2011 (mln)
Q1 Q2 Q3 Q4
2950,8 2785,7 2932,2 3031,9
9,3
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Stores
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Current Ratio

• Current assets/Current liabilities

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Dividend Per share
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Starbucks Chain of Success

• Financial
• Net Income
• Same store sales
• Earnings per share

1,000new stores in 2012

• Learning Growth
• Quality employees
• More recipes created

• Customers
• Increase core group
• Support shade growth
• Sustainability guide

• Operations
• New store growth
• Efficiency
• Source coffee beans

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SWOT Analysis
Strengths Weaknesses
Brand name recognition Quality Products Potential Internal Strengths Good Marketing Skills  Location Visionary leader Distribution Manufacturing competencies Non-pioneer in global market Narrow Product line Complicated Products
Opportunities Threats 
Expand into Foreign Markets Widen Product Range Diversify into new Growth Businesses Apply brand name capital in new areas Change in consumer tastes City regulations Increase in domestic competition Changes in economic factors Downturn in economy
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Revenue Estimates
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Earning Per Share
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Growth Rates
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Share Price Forecast
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Reasons to be bullish

• A strong levered free cash flow of 770 million
• A good quarterly revenue growth of 14.7
• Net income soared from 391 million in 2009 to
  1.24 billion in 2011.
• Sales increased from 9.7 billion in 2009 to
  11.7 billion in 2011.
• Annual EPS from .87 in 2007 to 1.52 in 2011

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Reasons to be bullish

• A manageable payout ratio of 42
• It has strong institutional support, held by
  institutions is 78
• A projected 3-5 year EPS growth rate of 17.7
• Projected growth rates of 21.29 25.2 for 2012
  and 2013 respectively.

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Stock Performance
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Stock Performance
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Technical Analysis

• Current Market price ..52.50
• 50-Day moving avg.46
• 100-Day moving avg.39
• 1stSupport_at_ 50-51
• 2nd Support_at_46-47
• 1st Resistance_at_53.56
• 2nd Resistance_at_55

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Recommendation

• Short Term
• Sell_at_53,Stop_at_54,Target_at_51
• OR
• Buy_at_51,Stop_at_50,Target_at_53.20
• Long Term
• Buy_at_45-46,Stop_at_42,Target_at_Open

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Presented By
Century Financial Brokers Contact No. 97143841907
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Thank you!