Starbucks (SBUX)

[helios]

Starbucks Q3 net earnings up

Jul 23, 2010 (Datamonitor via COMTEX) --

Starbucks, a roaster and retailer of specialty coffee, has reported net earnings attributable to the company of $207.9 million, or $0.27 per share, for the third quarter ended June 27, 2010, compared to $151.5 million, or $0.20 per share, for the third quarter ended June 28, 2009.

Total net revenues for the third quarter of fiscal 2010 were $2.61 billion, compared to $2.4 billion for the third quarter of fiscal 2009.

Net earnings attributable to the company for the first nine months ended June 27, 2010 were $666.7 million, or $0.87 per share, compared to $240.8 million, or $0.32 per share, for the first nine months ended June 28, 2009.

Total net revenues for the first nine months of fiscal 2010 were $7.87 billion, compared to $7.35 billion for the first nine months of fiscal 2009.

http://www.datamonitor.com

[helios]

Barclays Capital lowered its price target on the shares of specialty coffee retailer Starbucks Corp. to $26 from $28 based on lower-than-expected earnings for fiscal 2010 and 2011, while maintaining its "equal weight" rating.

Analyst Jeffrey Bernstein said he was impressed by Starbucks's current balance sheet position, which has $1 billion in cash on hand, $1.2 billion plus in free cash generated in fiscal 2010 with a similar sum expected in fiscal 2011, and access to a credit facility for at least another $1 billion.

Barclays said investors were expecting an upside to fiscal 2010 and 2011 Street estimates, with most of them not too keen to pay much more than the current.

The analyst expects Starbucks shares to stabilize at current levels though it will be a struggle to afford at the current valuation over the longer term. The analyst still believes Starbucks remains the premier specialty coffee retailer in the US, and with broader acceptance in most international markets he believes the company’s long-term growth prospects are still compelling.


Source: http://www.ibtimes.com/articles/37819/2 ... tes-q3.htm

[helios]

Sold last night on recovery. Switching back to other counters ...

[LenaHuat]

They are testing out alcoholic drinks at their Seattle outlets.

[LenaHuat]

Starbucks is planting coffee trees in Yunnan. The first harvest is due in 3 yr's time. China is overtaking Japan and UK to be SBUX's 2nd largest market after the US. I am sanguine about this ticker.
SBUX's first coffee farm in China

[LenaHuat]

This chain is expanding aggressively to China and eyeing India and Vietnam. It now offers full cream, low fat, no fat, soya for its caramel macchiato. I anticipate a very strong recovery for this ticker.
(disclosure : I'm a vested customer, a long-term Starbucks addict).

Starbucks China opened its 400th outlet in Changsha, Hunan Province, making it the second city in central China to host Starbucks after Wuhan. China is now the second largest of Starbucks, after the US. According to Starbucks Greater China Chairman, second-tier and even 3rd-tier and 4th tiered cities represent remarkable opportunities.

On a interesting note, Starbucks has now chased away students from their outlets. I like it much better this way.
It was stupid to let these students pay $6 for a drink each and chew up 3 hours of squatting time in the outlets.

[kennynah]

L :

how do the operational staff "chase away" these students?

[LenaHuat]

Hi K
I wasn't witness to the drive-away . I just woke up to the fact that they were missing these few days and enquired of the staff if SB no longer welcome these squatters. And the staff said yes. Good riddance to them.

[LenaHuat]

SBUX enters the India market with Tata Coffee This market will register phenomenal growth if they can overcome the difficulty of acquiring real estate. The Indian real estate is crazier than HK's.

[LenaHuat]

SBUX introduces the extra large 31-ounce cup, the Trenta. Customers can now pay for their coffee from their mobile phones.