Starbucks Corporation (NASDAQ: NASDAQ:SBUX)
Even though Starbucks earnings were in line with what was expected by analysts when they reported after the close of trading on Thursday April 23, 2017, It was their revenues figure and comp store sales where they missed Wall Street’s expectations, which sent the shares down nearly 5% in the aftermarket session.
Revenues were $5.29 billion or .45 per share.Analysts were looking for $5.4 billion. Shares closed the regular session down $0.26 at $61.30. However the aftermarket saw them close at $58.40 which is down an additional 4.73%.
Shares of Starbucks have ranged in the past 52 weeks from $50.84 to $61.94. The company has a generous program for their employees as well as a decent dividend. For the employees, called “Partners”, Starbucks will aid a partner in attaining a four-year bachelor’s degree via Arizona State University, named Pathway to Admission Program.
And for their shareholders, Starbucks offers a fairly decent dividend of $0.25 per share which equates to 1.63% annualized. That’s not bad when compared with what’s available out there in Banks and other investment opportunities.
Company Comments
Kevin Johnson, Starbucks President and CEO had this to say in the conference call:
With our U.S. business accelerating throughout the quarter and strong performance in China, we are poised to deliver strong revenue growth in the second half and into the future,” “Our success in opening over 2,000 stores around the world annually, delivering record AUV and profit, despite a very difficult period for many brick-and-mortar retailers is a testament to the 330,000 partners who proudly wear the green apron.- Zacks
Some Fun And Interesting Starbucks Facts
1-There are over 87,000 possible drink combinations at Starbucks
2-The original Starbucks in Seattle sold coffee in 8 oz cups. During expansion, they added the 12 oz and the 16 oz then got rid of the 8 oz and added the 24 oz and finally the 30 oz Trenta. The Trenta is slightly bigger than your stomach with the capacity to hold 916 milliliters. The stomach on average has a capacity of 900 ml.
3-A Starbucks grande coffee has 320 milligrams of caffeine, over four times the amount of caffeine in a Red Bull.
4-The Starbucks cinnamon chip scone has more calories than a McDonald’s quarter pounder with 480 calories
5-At $300 million, Starbucks spends more on healthcare insurance for its employees than on coffee beans
Source for facts: BusinessInsider
The Price Chart
In the above price chart you will see the daily action going back nearly a year. You will note a thick red horizontal line which has served as resistance for the share price during that period. However, the after hours session indicates they will likely open back below that price- shown on the chart circled in red on the far right.
Company Profile
Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development. The Company’s Americas, CAP, and EMEA segments include both company-operated and licensed stores.
Its Channel Development segment includes roasted whole bean and ground coffees, Tazo teas, Starbucks- and Tazo-branded single-serve products, a range of ready-to-drink beverages, such as Frappuccino, Starbucks Doubleshot and Starbucks Refreshers beverages and other branded products sold across the world through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores and the United States foodservice accounts.