Starbucks Financial Analysis
Financial Analysis - Starbucks Corporation
Travis Demmons
Dr. Said
FIN 534 – Financial Management
March 16, 2013
In this assignment, a savvy financial analyst researching companies in which to invest a U.S. publically-traded company that would be a good investment was chosen. After a lengthy search, a company that my family is unduly familiar with, Starbucks, was chosen and in the following pages a financial analysis will be described. The world renowned Starbucks Corporation (New York Stock Exchange: SBUX) has gone from a Seattle-based company to one of the world's most powerful and recognizable brands of high-quality coffee. Starbucks welcomes millions of customers through their doors every day in destinations all over the globe. Starbucks mission is to inspire and nurture the human spirit; “one person, one cup and one neighborhood at a time”. They have long believed in serving the best coffee possible with their ultimate goal for all of their coffee to be grown under the highest standards of quality but with maintaining the highest ethical practices possible. Starbuck’s company coffee selector’s travel to remote coffee farms all over the globe in search of the highest quality Arabica beans. Once the beans arrive at the Starbucks roasting plants, their experts attempt to balance the rich flavor of the beans through their signature Starbucks Roast (Starbucks.com, n.d.). Starbucks stores serve many patrons and purposes: a meeting place, taking a break with your favorite book, surfing the internet on their wireless connection, or simply finding a sense of home in a new city. Starbucks products consist of Coffee of more than 40 blends as well as single‐origin premium Arabica coffees. They offer freshly‐brewed coffee, hot and iced espresso beverages, coffee and non‐coffee blended beverages, smoothies and teas. Their lattes are a favorite of the authors and are one of their best-selling items. They also sell an
Travis Demmons
Dr. Said
FIN 534 – Financial Management
March 16, 2013
In this assignment, a savvy financial analyst researching companies in which to invest a U.S. publically-traded company that would be a good investment was chosen. After a lengthy search, a company that my family is unduly familiar with, Starbucks, was chosen and in the following pages a financial analysis will be described. The world renowned Starbucks Corporation (New York Stock Exchange: SBUX) has gone from a Seattle-based company to one of the world's most powerful and recognizable brands of high-quality coffee. Starbucks welcomes millions of customers through their doors every day in destinations all over the globe. Starbucks mission is to inspire and nurture the human spirit; “one person, one cup and one neighborhood at a time”. They have long believed in serving the best coffee possible with their ultimate goal for all of their coffee to be grown under the highest standards of quality but with maintaining the highest ethical practices possible. Starbuck’s company coffee selector’s travel to remote coffee farms all over the globe in search of the highest quality Arabica beans. Once the beans arrive at the Starbucks roasting plants, their experts attempt to balance the rich flavor of the beans through their signature Starbucks Roast (Starbucks.com, n.d.). Starbucks stores serve many patrons and purposes: a meeting place, taking a break with your favorite book, surfing the internet on their wireless connection, or simply finding a sense of home in a new city. Starbucks products consist of Coffee of more than 40 blends as well as single‐origin premium Arabica coffees. They offer freshly‐brewed coffee, hot and iced espresso beverages, coffee and non‐coffee blended beverages, smoothies and teas. Their lattes are a favorite of the authors and are one of their best-selling items. They also sell an
References: Brigham, E. F. & Ehrhardt, M. C. (2011). Financial Management. (13th ed.). Mason, OH: South-Western Cengage Learning Forbes. Retrieved from http://finapps.forbes.com/finapps/jsp/finance/compinfo/IncomeStatement.jsp?tkr=SBUX&period=qtr NASDAQ. Retrieved from http://www.nasdaq.com/symbol/sbux Restaurant Industry. (2010). Pocket Fact book. Retrieved from http://www.restaurant.org/pdfs/research/2010Forecast_PFB.pdf Starbucks. Retrieved from www.starbucks.com Starbucks Investor Relations. Retrieved from http://investor.starbucks.com United States Inflation Rate. (2010). Trading Economics. Retrieved from http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?Symbol=USD The Wall Street Journal. (2011). General format. Retrieved from http://online.wsj.com.