Category Archives: SBUX

In the mood for a DoubleShot Espresso…?

Starbucks offers one. The investor might ask himself if Starbucks is worth a look now after a ytd drop of almost 28%. According to the fact sheet of Starbucks they globally run approx. 13168 Stores. 40000 are planed (according to Schultz in a TIME-article  you can find here). Potential for growth does exist: its presence in the US is already strong, but Asia, in particular China, and Europe are under represented in comparison to US standards.  But the potential investor should be aware of Europe‘s peculiar cultural characteristics. For example, Starbucks in Italy, if not presented adequately could easily end up as a low quality coffee corner. Do not forget the origin of cappuccino and co is Italy. Though the coffee may come from other places. Germans and French also are very sceptical about a ‘cappuccino’ brand, since the high net worth clientele in Europe prefers self made cappuccinos and espressos. Nevertheless key to the success in Europe is the youth. They do not necessarily feel an obligation to a so called coffee tradition. If Starbucks is smart, they will not address the busy New Yorker type of employee in Europe but hip students with a lot of time and money on their hand.Find more insight on the company on the for sure known blog The Peridot Capitalist by Chad Brand, one of the best investment blogs out there. You should definitely check it out.  Full Disclosure: I do not own stocks of the mentioned company.

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