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Here's How Much a $1000 Investment in Starbucks Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 — (70% of total revenues in the fiscal first quarter); International (24%); and Channel Development (CD — 6%). 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.
According to our calculations, a $1000 investment made in July 2011 would be worth $5,907.38, or a gain of 490.74%, as of July 22, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 224.36% and gold's return of 8.10% over the same time frame.
Analysts are anticipating more upside for SBUX.
Shares of Starbucks have outperformed the industry in the past year. Notably, the company has been benefiting from initiatives with respect to opening stores in new and existing markets, remodeling existing stores, deploying technology, controlling costs and aggressive product innovation and brand building. This along with focus on Global Coffee Alliance with Nestle, bode well. Going forward, the company has raised its earnings guidance for fiscal 2021. Also, it anticipate Americas and U.S. comps growth to be 17-22% in fiscal 2021. Notably, earnings estimates for 2021 have moved up over the past 30 days, depicting analysts optimism regarding the stock growth potential. However, coronavirus related woes persists. This along with dismal traffic and the company’s high debt level raise concerns.
The stock is up 6.91% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Starbucks Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 — (70% of total revenues in the fiscal first quarter); International (24%); and Channel Development (CD — 6%). 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.
According to our calculations, a $1000 investment made in July 2011 would be worth $5,907.38, or a gain of 490.74%, as of July 22, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 224.36% and gold's return of 8.10% over the same time frame.
Analysts are anticipating more upside for SBUX.
Shares of Starbucks have outperformed the industry in the past year. Notably, the company has been benefiting from initiatives with respect to opening stores in new and existing markets, remodeling existing stores, deploying technology, controlling costs and aggressive product innovation and brand building. This along with focus on Global Coffee Alliance with Nestle, bode well. Going forward, the company has raised its earnings guidance for fiscal 2021. Also, it anticipate Americas and U.S. comps growth to be 17-22% in fiscal 2021. Notably, earnings estimates for 2021 have moved up over the past 30 days, depicting analysts optimism regarding the stock growth potential. However, coronavirus related woes persists. This along with dismal traffic and the company’s high debt level raise concerns.
The stock is up 6.91% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021. The consensus estimate has moved up as well.