Starbucks Stock

Starbucks Stock

Starbucks is one of the strongest American brands. The Seattle based company has gone from a local phenomena to a company worth more than $10 billion and with 172,000 employees. Starbucks stock has seen ups and downs from 2006-2008. It was in 2006 when Starbucks stock reached nearly $40 per share, giving investors in SBUX a company worth around $25 billion. The stock has split 5 times (2:1 each time) since its inception on the NASDAQ market in 1992. Starbucks makes most of its money in its local Starbucks coffee chain, ubiquitous in US cities and growing through the world. It also lends its name to Starbucks braded coffee utilities and packed grounds available at 1000s more retail stores outside of Starbucks.

The retail coffee business is incredibly competitive and Starbucks stock, despite revolutionizing the industry, faces fierce and new competitors everyday. Traditionally, the company faced off with retail stores like Dunkin Donuts, Caribou Coffee (NASDAQ: CBOU), Einstein Noah Restaurant Group (NASDAQ: BAGL), and Panera Bread (NASDAQ: PNRA). Lately, however, one of its fiercest competitors has been McDonald's stock.

Many long term investors have been dissatisfied with Starbucks stock performance over the past two years. Howard Schultz has been brought back into run the company and a variety of new initiatives have been put into place. Starbucks stock has traded as low as 2003 levels and does not currently pay a dividend. Investors have been searching for more information on how the company will turn around. Given its latest difficulties, Starbucks stock has not been seen by may as a great long term investment. Nevertheless, its strength of brand and quality of coffee may make Starbucks stock below $20 as an incredible value for long term investors.