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If You Invested $1000 in Starbucks 10 Years Ago, This Is How Much You'd Have Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Starbucks (SBUX - Free Report) ten years ago? It may not have been easy to hold on to SBUX for all that time, but if you did, how much would your investment be worth today?
Starbucks' Business In-Depth
With that in mind, let's take a look at Starbucks' main business drivers.
Founded in 1985 and based in Seattle, WA, Starbucks Corporation is the leading roaster and retailer of specialty coffee in the world. In addition to fresh, rich-brewed coffees, Starbucks’ offerings include many complementary food items and a selection of premium teas and other beverages, sold mainly through the company’s retail stores. The company’s popular brands include Starbucks coffee, Teavana tea, Seattle's Best Coffee, La Boulange bakery products and Evolution Fresh juices.
Other than the company’s own retail stores, it generates revenues through licensed stores, consumer packaged goods and foodservice operations. The company receives royalties and license fees from the U.S. and international licensed stores. Under its consumer packaged goods operations, Starbucks sells packed coffee and tea products as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse clubs and specialty retail stores. It also includes revenues from licensing deals with many partners to produce and sell its Starbucks and Seattle's Best Coffee branded products. Under its foodservice operations, Starbucks supplies some of its products to restaurants, office coffee distributors, hotels, airlines and other retailers.
Starbucks operates through the following segments: Americas (inclusive of the United States), Canada and Latin America — (68% of total revenues in the fiscal fourth quarter); International (24%); and Channel Development (CD — 8%). The CD segment is not a geographic region but an entirely different channel (it is a combination of the consumer packaged goods or CPG and foodservice businesses). It includes roasted whole bean and ground coffees, premium Tazo teas, a variety of ready-to-drink beverages (like Frappuccino and Starbucks Refreshers) and Starbucks and Tazo branded K-Cup packs sold through channels such as grocery, specialty retailers, and foodservice to name a few. The All-Other segment comprises Teavana-branded stores, Seattle’s Best Coffee, as well as certain developing businesses such as Siren Retail, which includes Starbucks Reserve Roastery & Tasting Rooms, Starbucks Reserve brand and products and Princi operations.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Starbucks ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in April 2011 would be worth $6,310.27, or a gain of 531.03%, as of April 22, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 212.06% and the price of gold increased 14.76% over the same time frame in comparison.
Analysts are forecasting more upside for SBUX too.
Shares of Starbucks have outperformed the industry in the past year. The company has been benefiting from operating fundamentals such as solid global footprint, successful innovations and digital offerings. After posting comps decline in second, third and fourth-quarter fiscal 2020 due to the coronavirus pandemic, it returned to growth in first-quarter fiscal 2021. The company anticipates global comps to increase between 18% and 23% in fiscal 2021. Moreover, it anticipates Americas and U.S. comps to increase in the range of 17% to 22% in fiscal 2021. In fiscal 2021, the company anticipates China comps growth to be 27-32% year over year. However, high debt, dismal margin and decline in store traffic remain a concern for the company. In the past 7 days, earnings estimates for second quarter and fiscal 2021 have witnessed upward revisions.
Shares have gained 9.43% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Starbucks 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Starbucks (SBUX - Free Report) ten years ago? It may not have been easy to hold on to SBUX for all that time, but if you did, how much would your investment be worth today?
Starbucks' Business In-Depth
With that in mind, let's take a look at Starbucks' main business drivers.
Founded in 1985 and based in Seattle, WA, Starbucks Corporation is the leading roaster and retailer of specialty coffee in the world. In addition to fresh, rich-brewed coffees, Starbucks’ offerings include many complementary food items and a selection of premium teas and other beverages, sold mainly through the company’s retail stores. The company’s popular brands include Starbucks coffee, Teavana tea, Seattle's Best Coffee, La Boulange bakery products and Evolution Fresh juices.
Other than the company’s own retail stores, it generates revenues through licensed stores, consumer packaged goods and foodservice operations. The company receives royalties and license fees from the U.S. and international licensed stores. Under its consumer packaged goods operations, Starbucks sells packed coffee and tea products as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse clubs and specialty retail stores. It also includes revenues from licensing deals with many partners to produce and sell its Starbucks and Seattle's Best Coffee branded products. Under its foodservice operations, Starbucks supplies some of its products to restaurants, office coffee distributors, hotels, airlines and other retailers.
Starbucks operates through the following segments: Americas (inclusive of the United States), Canada and Latin America — (68% of total revenues in the fiscal fourth quarter); International (24%); and Channel Development (CD — 8%). The CD segment is not a geographic region but an entirely different channel (it is a combination of the consumer packaged goods or CPG and foodservice businesses). It includes roasted whole bean and ground coffees, premium Tazo teas, a variety of ready-to-drink beverages (like Frappuccino and Starbucks Refreshers) and Starbucks and Tazo branded K-Cup packs sold through channels such as grocery, specialty retailers, and foodservice to name a few. The All-Other segment comprises Teavana-branded stores, Seattle’s Best Coffee, as well as certain developing businesses such as Siren Retail, which includes Starbucks Reserve Roastery & Tasting Rooms, Starbucks Reserve brand and products and Princi operations.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Starbucks ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in April 2011 would be worth $6,310.27, or a gain of 531.03%, as of April 22, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 212.06% and the price of gold increased 14.76% over the same time frame in comparison.
Analysts are forecasting more upside for SBUX too.
Shares of Starbucks have outperformed the industry in the past year. The company has been benefiting from operating fundamentals such as solid global footprint, successful innovations and digital offerings. After posting comps decline in second, third and fourth-quarter fiscal 2020 due to the coronavirus pandemic, it returned to growth in first-quarter fiscal 2021. The company anticipates global comps to increase between 18% and 23% in fiscal 2021. Moreover, it anticipates Americas and U.S. comps to increase in the range of 17% to 22% in fiscal 2021. In fiscal 2021, the company anticipates China comps growth to be 27-32% year over year. However, high debt, dismal margin and decline in store traffic remain a concern for the company. In the past 7 days, earnings estimates for second quarter and fiscal 2021 have witnessed upward revisions.
Shares have gained 9.43% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.