Starbucks Stock: Analyzing Growth Potential and Financial Performance

Sunday, 17 March 2024, 06:59
Starbucks, a globally recognized brand, faces challenges in sustaining growth due to market saturation. Despite its enormous global presence, the company has opportunities for expansion, especially in the specialty coffee market. While Starbucks continues to show steady revenue growth, investors may need to consider competition from peers like Dutch Bros and McDonald's. Overall, holding Starbucks stock may offer stability, but investors should carefully assess the rising competitive threats and underperformance compared to market indices.
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Starbucks Stock: Analyzing Growth Potential and Financial Performance

Starbucks Stock: Buy, Sell, or Hold?

Its massive global footprint both fosters and hinders the growth of its stock. Starbucks (NASDAQ: SBUX) is one of the most recognized brands in the world. Its steady growth has taken it to nearly 39,000 locations worldwide, and its store additions in China have helped fuel its continuous expansion.

Starbucks' growth prospects

Despite Starbucks' longtime presence, its industry has tremendous room for growth. According to Grand View Research, the specialty coffee market is expected to grow at a compound annual rate of 11% through 2030.

Since Starbucks operates in numerous countries, it could be better positioned than any other company to capitalize on this trend. With that, CEO Laxman Narasimhan recently announced at a conference that Starbucks can grow to 55,000 locations by 2030.

How it compares financially

With the continued expansion, Starbucks' revenue for the first quarter of fiscal 2024 (ended Dec. 31) rose 8% yearly to $9.4 billion...

... Star Advisor service has more than tripled the return of S&P 500 since 2002*.

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