STARBUCKS

Analysis of Starbucks share price

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Are you considering investing part of your capital on the American Stock Exchange and trading in the Starbucks group stock? In this case, take a few moments to read the following information which will help you to carry out your analyzes of this value. You'll find the price chart of this stock as well as its historical analysis in this file.

Elements that can influence the price of this asset:

Analysis N°1

Starbucks' expansion strategy in emerging markets should be followed carefully.

Analysis N°2

As well as measures taken to diversify the group's activities which are important for a good analysis of this stock.

Analysis N°3

All the strategic alliances and partnerships set up by the Starbucks group should of course be monitored for their impact on strengthening the company's presence and market share in the world. This particularly involves alliances with retailers or anything regarding everyday consumer goods.

Analysis N°4

Starbucks direct and indirect competition should also be watched. Particularly large restaurant chains which generally offer similar products and at lower cost.

Analysis N°5

The communication campaigns implemented by Starbucks in order to counter certain changes in consumer habits who currently favour local businesses are also to be taken into account, as are the current major socio-cultural trends.

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General presentation of Starbucks

American group Starbucks owns and operates coffeehouse chains. Most of the turnover comes from the coffeehouse chain operations while the rest comes from the sale of licenses around the world. But Starbucks is also developing the sale of coffee, drinks and food products for businesses.

Starbucks generates most of its sales in the United States. The Starbucks stock price is currently listed on the Nasdaq Global Select Market and is included in the calculation of the Nasdaq 100 stock market index.

Analysis of Starbucks share price
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The major competitors of Starbucks

The Starbucks group is categorized into two distinct business sectors: coffee roasting and production as well as the fast food coffee sector. With this in mind, it's important to include the competition emanating from these two sectors of activity during your analyses of its share price. Here's some information on the subject.

Starbucks ranks 5th worldwide and in turnover in the coffee roasting sector. It's behind the giant Nestlé, as well as Mondélez, Douwe Egberts and JM Smucker. It's followed by Strauss, Tchibo, UCC Coffee, Lavazza and Keurig Green Montain.

Its main competitors in the fast food sector are currently the McDonald's and Subway groups which occupy the first two places in the world ranking.

We recommend that you stay up to date about any news in this sector of activity by finding important data on information websites or on your broker's website to trade the Starbucks share.


The major partners of Starbucks

Let's check out Starbucks' main partners in detail.

Selecta

In 2014, Starbucks joined the Selecta group (unattended self-service retailer) offering its range of coffees to French and European companies customers of the company.

Spotify

In 2015, Starbucks signed a partnership with the Spotify group. Users subscribed to Spotify Premium are able to access free drinks and choose the music played in Starbucks coffeehouses.

Casino Restauration

Starbucks also signed a partnership with the Casino Restauration subsidiary of the Casino group in 2015, which facilitated the opening of Starbucks cafes in the group's hypermarkets in France. The same year, Starbucks signed a similar partnership with another big name in the distribution industry, Monoprix, and also set up its coffeehouses.

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The factors in favour of a rise in the Starbucks share price:

Firstly, one of Starbucks' most important assets is undoubtedly its brand image. The brand has succeeded in making itself popular all over the world and is now one of the best known brands internationally, which is of course an advantage in making it easier for the brand to establish itself wherever it wants to.

In addition, the Starbucks Group's customer base continues to grow year after year. The customers recruited in this way are then quickly retained and the group benefits from greater stability in its business over time.

Since Starbucks is, as you will have understood, primarily based on an international expansion strategy, it can of course count on a very extensive supply chain around the world. This, of course, helps to effectively support its operations. The company's suppliers are thus carefully selected and well distributed geographically, allowing for fast and regular supply and control of transport costs.

Starbucks' strategy of diversifying its activities with the acquisition or development of subsidiaries such as Ethos Water or Best Coffee is another undeniable asset of the group. This diversification in the company's activities enables it to reduce the market and industry risks of its core business.

The factors in favour of a drop in the Starbucks share price:

Firstly, Starbucks' high price policy can be cited as an important weakness. These high prices increase the company's margins but at the same time reduce the affordability of their products. As a result, the company's market shares are limited, and Starbucks actually reaches only a very small portion of the customer base in this industry.

The fact that Starbucks uses standardized and generalized protocols for the manufacture of its products may prove to be a definite handicap for its future development. Starbucks may have difficulty establishing a presence in certain countries and geographic areas because of an inability to align itself with the cultural references of those markets.

While Starbucks has made its name through original products, these are not protected by patents and can therefore be very easily imitated. The group's local competitors therefore take advantage of this to offer equivalent products at a lower cost, which represents a significant loss of market share for the American company. Some of Starbucks' competitors even go so far as to copy the atmosphere of the chain's cafés to attract more consumers. Some directly competing chains are beginning to expand around the world.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the latest financial figures and results released by Starbucks?

The latest financial results known for the Starbucks Company are those for the fiscal year 2019. We know that the company achieved a turnover of around $ 26,509 million that year in September. Its net income was $ 3,599 million for the same year. Bear in mind that at the end of 2019, the market capitalization of the Starbucks group was $ 103,763 million.

Where can I find information on the Starbucks Group's strategic plans?

Since the Starbucks group is accountable to shareholders, it regularly publishes reports of its important strategic meetings and implements strategic development plans. It is possible to consult this information as well as other financial, economic and stock market information on the investors section on the company's website.

Which analysis should be used to anticipate variations in the Starbucks share price?

You shouldn't rely on just one type of analysis if you want to best anticipate changes in the Starbucks share price. It's by jointly using several types of analysis including technical analysis, fundamental analysis, financial analysis, sector analysis and competitive analysis that you are most likely to understand how this value is likely to evolve in the more or less long term.

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The content in question is provided for information purposes only and should not be considered as investment advice. Past performance is no guarantee of future results. The trading history is less than 5 years old and may not be sufficient to serve as a basis for an investment decision.

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