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Starbucks Corp (SBUX) USD0.001

Sell:$88.68 Buy:$88.69 Change: $0.46 (0.52%)
NASDAQ:0.20%
Market closed |  Prices as at close on 13 December 2019 | Switch to live prices |
Sell:$88.68
Buy:$88.69
Change: $0.46 (0.52%)
Market closed |  Prices as at close on 13 December 2019 | Switch to live prices |
Sell:$88.68
Buy:$88.69
Change: $0.46 (0.52%)
Market closed |  Prices as at close on 13 December 2019 | Switch to live prices |
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

HL comment (23 January 2015)

First quarter results: The world's biggest coffee chain unveiled a 13% rise in revenues to a record $4.8 billion in the first quarter. Global same-store sales were up 5%, with a 2% increase in store traffic, the company reported in a statement. Comparable store transactions jumped by nearly 9 million in the US, and nearly 12 million globally. 'Starbucks record Q1 fiscal 2015 financial and operating performance was exceptional by every metric and standard,' said CEO Howard Schultz, in a statement. The company also announced that Kevin Johnson, former CEO of Juniper Networks, would become President and Chief Operating Officer on 1 March. Troy Alstead, Starbucks' current chief operating officer, announced plans to take a year-long sabbatical earlier this month. Based on the combined estimates of analysts that cover the company, market consensus opinion remains a strong buy.

Read more share research from Hargreaves Lansdown

Financial Highlights:

  • For the quarter, Starbucks posted an 82% rise in profits to $983.1 million, from $540.7 million a year earlier.
  • Revenues increased 13% to $4.8 billion.
  • The company repurchased a near 3 million shares during the quarter.
  • The Board of Directors declared a cash dividend of 32 cents per share.

Negative Points:

  • Starbucks faces increasing competition from fast-food chains offering speciality coffee.
  • The shift to online shopping may impact on sales growth.
  • Any downturn in the global economy would impact on sales performance. The company has ambitious international expansion plans against a headwind of unsettled global economic conditions.

Positive Points:

  • The company completed the first step of its tender offer to acquire Starbucks Japan in the quarter, bringing its total ownership of the market to a controlling 79% interest in Q1. The transaction is expected to be fully complete in the first half of 2015, resulting in 100% ownership.
  • Starbucks has been diversifying in recent years from its traditional coffee business by adding more packaged products and food.
  • The first Starbucks Reserve roastery and tasting room opened in Seattle in early December, with another 100 planned globally.
  • The company opened 1,599 new stores globally in 2014, including 742 in the China Asia Pacific region, 698 in the Americas and 171 in Europe Middle East & Asia. The company added 512 new stores during the quarter bringing the total to 21,878 around the world.

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This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.


Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used.

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The London Stock Exchange does not disclose whether a trade is a buy or a sell so this data is estimated based on the trade price received and the LSE-quoted mid-price at the point the trade is placed. It should only be considered an indication and not a recommendation.

Trades priced above the mid-price at the time the trade is placed are labelled as a buy; those priced below the mid-price are sells; and those priced close to the mid-price or declared late are labelled 'N/A'.