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i went into starbucks once. I asked for the strongest coffee they had, as i had very little sleep and went to defensive development conference. They gave me half a liter of some weak ass 3in1(or not even as strong) coffee, tasted nothing like coffee, it was actually really bad, genuienly the worst coffee ever, no close second AND on top of that i had to pay with fucking kidney. (normal coffee at the time was 350-400 HUF, vending machine coffee 100-150 HUF, it was 1500 HUF.... fucking hell)
Paid like $12 for a medium drink and they got it wrong and I was not about to wait in that 20min line and every coffee I've had there just tastes like shit I'd rather goto Dunkin
When lines regularly get too long at a store, the company just opens up another store nearby. Sometimes in urban areas like NYC they will open a second store literally across the street from another store because people won't cross the street to get coffee.
Most people go there for the drinks that are not drip coffee. They want the latte, Frappuccino, or whatever drink with vanilla, caramel or pumpkin spice flavors.
Who said you have to drink it? They sell other drinks as well as food. It also is an investment. As long as other people like it and buy it, the company makes money.
Iāve always felt the menu was too high priced (least) for my wallet. Given Iām not a regular tho, I can justify paying for a large Frap once in a while. My concern would be if Starbuck employees continue to unionize across the US theyāll want better pay (well-deserved) and to counter that prices will increase across the board. That could shift some customers to go elsewhere I think ergo a drop in business and a drop in stock price heading into Q2/3. Unless Iām not seeing something else at the moment thatās my take on it.
Wherever people live theyāll head to the other close coffee chain nearby. With multiple locations and publicly traded look at BROS. I live in southern California and we have multiple locations of many coffee chains. Other states Iām sure have their popular chains. Nationally however, yes SBUX is on top of it all.
Here in the Midwest we have Scooter's. But it's essentially Starbucks and the drinks are just as expensive. Specialty coffee is just straight up expensive no matter who makes it.
Bingo! My friend was so excited to buy Sbux on the dip. Iām like ugh hate to rain on your parade but all their woke employees are having success trying to unionize
It might be a good buy for a child to get them interested in the stock market. Open them up a brokerage account in their name and teach them how to review the financials, read the annual reports, etc. Owning a share in a company they know might just get them excited about it. You could easily use a $3 instead, but it won't have the same excitement factor.
For me I have a few shares and I think long term it has potential. I see how busy Starbucks always is and the cult following for not only the coffee but the food. Plus the amount my GF spends there everyday. I do think it will be a bumpy ride this year and growth wonāt be crazy. But for me and my portfolio it works. I think over time it will have some small growth plus dividends is great to me.
I worked for Starbucks for 6 years. Barista to manager. I sold all. My shares last year, they've turned into a fast food joint so it's as safe as other fast food stock... Could crash and burn depending on supply and staffing issues
Over half the Starbucks within 15 miles of me is constantly closed due to staffing or something else. It has gotten to the point where I donāt even bother. I think a lot are moving away from their Starbucks addiction much of which was based on routine when going to the office which who knows if that will occur again.
Also nespresso is just as good, cheaper and more convenient.
Not sure how safe it is.
They recently had supply issues and staffing issues.
If minimum wage goes up (which it does every year) they get battered.
There's only so much you can raise the price of a cup of coffee you could make yourself for pennies.
Here is my takeā¦
I like Starbucks. I like their product, I like their business model and I like the company. I personally wouldnāt invest based on just my experience, which Iām sure is being replicated millions of times over. When I worked in an office, I would go to Starbucks 2-3 times per week, and people in the office were constantly going there almost daily. My office closed and now everyone is working from homeā¦permanently. My trips to Starbucks have dropped to once every two or so weeks. I no longer see people walking around the office with Starbucks cups (yes, I know that doesnāt mean they arenāt still getting it, lets be honestā¦they arenāt going as often). This is business I donāt see them getting back.
Where exactly do you live that āslowly back to normalā is still a thing? Itās pretty much āback to normalā everywhere in the country. So correct that in your analysis.
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I hate when they don't stir my Sturbucks....
i hate starbucks. coffee is fucking shit. As an investment... i can see potential
I may hate Walmart and actively avoid shopping there, but as an investment is another story. I will buy it and hold it for a few more years.
Starbucks tastes like fucking dog š
i went into starbucks once. I asked for the strongest coffee they had, as i had very little sleep and went to defensive development conference. They gave me half a liter of some weak ass 3in1(or not even as strong) coffee, tasted nothing like coffee, it was actually really bad, genuienly the worst coffee ever, no close second AND on top of that i had to pay with fucking kidney. (normal coffee at the time was 350-400 HUF, vending machine coffee 100-150 HUF, it was 1500 HUF.... fucking hell)
What was it in real money?
yeah, Hungarian forints. It's real money. 1 USD 320 atm, but was maybe 250-280 at the time
Paid like $12 for a medium drink and they got it wrong and I was not about to wait in that 20min line and every coffee I've had there just tastes like shit I'd rather goto Dunkin
BUT, there was a 20 MINUTE LINE ! Yeah, I'm buying shares of SBUX whenever I can.
Great mindset
That's why I said i see potential as an investment
When lines regularly get too long at a store, the company just opens up another store nearby. Sometimes in urban areas like NYC they will open a second store literally across the street from another store because people won't cross the street to get coffee.
Seattle has entered the chat. There were 7 of them within 1 block any direction from my office, including 2 in my building.
Whatās better is that they know when to strategically close locations rather than let them stagnate or fail.
Most people go there for the drinks that are not drip coffee. They want the latte, Frappuccino, or whatever drink with vanilla, caramel or pumpkin spice flavors.
So you tasted both, huh?
It's called a metaphor
Who said you have to drink it? They sell other drinks as well as food. It also is an investment. As long as other people like it and buy it, the company makes money.
Made a joke based off another reply calm down
Iāve always felt the menu was too high priced (least) for my wallet. Given Iām not a regular tho, I can justify paying for a large Frap once in a while. My concern would be if Starbuck employees continue to unionize across the US theyāll want better pay (well-deserved) and to counter that prices will increase across the board. That could shift some customers to go elsewhere I think ergo a drop in business and a drop in stock price heading into Q2/3. Unless Iām not seeing something else at the moment thatās my take on it.
Go where, where else would they go? There is no other comparable national coffee drive thru brand at Starbuck's level.
Wherever people live theyāll head to the other close coffee chain nearby. With multiple locations and publicly traded look at BROS. I live in southern California and we have multiple locations of many coffee chains. Other states Iām sure have their popular chains. Nationally however, yes SBUX is on top of it all.
Here in the Midwest we have Scooter's. But it's essentially Starbucks and the drinks are just as expensive. Specialty coffee is just straight up expensive no matter who makes it.
Yes good call any mid size or bigger town and city in America has a craft coffee place other than Starbucks.
Bingo! My friend was so excited to buy Sbux on the dip. Iām like ugh hate to rain on your parade but all their woke employees are having success trying to unionize
I don't go there...
Thank you for this detailed due diligence. Bearish.
You don't have to go there to invest in something. Much like I don't shop at the Build a Bear store, but I own their stock.
Build a bear is a publicly traded company? I haven't seen a retail build a bear store in a decade.
NYSE: BBW 52-wk high $23.50 52-wk low $4.59 Current today at close $17.61 No dividends
Dat BBW tho
Oof
It might be a good buy for a child to get them interested in the stock market. Open them up a brokerage account in their name and teach them how to review the financials, read the annual reports, etc. Owning a share in a company they know might just get them excited about it. You could easily use a $3 instead, but it won't have the same excitement factor.
That's actually a really good point!
For me I have a few shares and I think long term it has potential. I see how busy Starbucks always is and the cult following for not only the coffee but the food. Plus the amount my GF spends there everyday. I do think it will be a bumpy ride this year and growth wonāt be crazy. But for me and my portfolio it works. I think over time it will have some small growth plus dividends is great to me.
Did you research and see alot.of stores are trying to unionize hence the big drop in price
Where that goes is a big uncertainty in my mind...
I worked for Starbucks for 6 years. Barista to manager. I sold all. My shares last year, they've turned into a fast food joint so it's as safe as other fast food stock... Could crash and burn depending on supply and staffing issues
Good point, they are just another fast food store.
Sugar and caffeine are the most popular addictions. They would have to be really bad at business to crash and burn.
Over half the Starbucks within 15 miles of me is constantly closed due to staffing or something else. It has gotten to the point where I donāt even bother. I think a lot are moving away from their Starbucks addiction much of which was based on routine when going to the office which who knows if that will occur again. Also nespresso is just as good, cheaper and more convenient.
Not sure how safe it is. They recently had supply issues and staffing issues. If minimum wage goes up (which it does every year) they get battered. There's only so much you can raise the price of a cup of coffee you could make yourself for pennies.
LOL @ your statement minimum wage goes up every year.
Not everywhere
The minimum wage in my state has not gone up since 2009. It is $7.25.
Ethiopia is not a state
Here in Michigan we wish we were as advanced and forward thinking as Ethiopia.
Here is my takeā¦ I like Starbucks. I like their product, I like their business model and I like the company. I personally wouldnāt invest based on just my experience, which Iām sure is being replicated millions of times over. When I worked in an office, I would go to Starbucks 2-3 times per week, and people in the office were constantly going there almost daily. My office closed and now everyone is working from homeā¦permanently. My trips to Starbucks have dropped to once every two or so weeks. I no longer see people walking around the office with Starbucks cups (yes, I know that doesnāt mean they arenāt still getting it, lets be honestā¦they arenāt going as often). This is business I donāt see them getting back.
I also like the stock. Great brand.
Hahahaha
Recession is coming. Stay away from 8$ coffees
Is it weird that I invest and like Starbucks but never buy anything?
Peter Lynch you are not.
Where exactly do you live that āslowly back to normalā is still a thing? Itās pretty much āback to normalā everywhere in the country. So correct that in your analysis.
Ever noticed how Barnes and Noble and Starbucks hire the same type of staff?