Starbucks -SBUX-

Couldnt find a thread on this. Anyone here in starbucks? I am and it is a suprise solid performer, I had bought it for some growth and also dividend growth. Has since pushed on since march crash very well, I would suggest people not in it to check it out if you want a steady performing consumer stock with a decent dividend/dividend growth. I would think we will see $90-$93 range again so perhaps look for pull back but think this could be a great 2021 stock as its done well even in crisis

I am! :coffee:

I’ve got a pie setup named “The BUSY Pie” and Starbucks is one of my holdings. Yeah, it has been performing really well for me since I added it - I like to think the occasional lattes I buy from there (like the one I just finished) is helping me out with my investment too!

After all, why just be a consumer of the places you frequent when you can be an owner too!? :ok_hand:

Glad to hear it is doing well for you too @Hbomb :+1:

I’ve bought Starbucks too. It is one of the companies that Terry Smith recently bought for Fundsmith.

Not sure what this means, but I have noticed that in our neighbourhood the Starbucks stores have been making more effort to stay open than Costa and Cafe Nero. I own KO too, so a bit disappointed by Costa staying closed.

Do any people find that once invested on a stock they find a particular satisfaction buying that company’s products? KO, CL, PG, PEP, SBUX, DIS. Even when in hospital it felt good to be on a SYK bed in the operating theatre.

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Do any people find that once invested on a stock they find a particular satisfaction buying that company’s products?

Yes, 100% - it can be dangerous though because it might encourage you to buy more of X thing just because you’re invested in it! :rofl:

Like I said above, I don’t mind buying Starbucks coffee as much now because I am invested in them - I definitely wasn’t like that before becoming an investor! :rofl:

Remember though guys, think of the compound effect if you didn’t buy that coffee and put it straight back into the stock! :smiley:

But yeah it does make you think if you have to spend money then in a tiny tiny tiny way its nice to spend in something you are a stakeholder of.

Not sure about US, but Starbucks should continue decent growth in Chinese market, but I also see it as a stock that in 5-10 years time will be seen as a solid dividend stock like KO etc, so SBUX now will probably net you a very nice yield in years to come.

Just wanted to update and see peoples thoughts on SBUX going into 2021, I have been adding to it over last few months and trying to work out what I think it will do in 2021, had a good run up in last few months then been sort of sideways give or take a couple % for month or so. Earnings in a couple of weeks so keeping an eye on that, kind of want it to take a hit to below $100 to add more haha!

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personally am gonna keep adding to my current position but I wouldn’t say it’s a really good buy at this price. Will definitely be interested how the recovery plays out for them and how their international growth pans out. I don’t think their growth story is over yet but it might take longer than expected to go back to pre pandemic levels.

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I agree, its not a bargain or value play at these prices for sure, and it needs reopening more than lots of my other stocks, BUT they are focusing on growth in China which has a huge growing middle class, and in China its the middle class/younger audience who frequent Starbucks due to it being a more expensive choice to many standard Chinese snack/drink shops.

Also there is a comment which I heard on somewhere maybe like CNBC or other news type snippet, that through this pandemic there are going to be lots of independant businesses sadly bankrupt, so arguably companies like Starbucks on reopening might capture a larger audience if say a place had 10 coffee places, but now 3 have closed and what remainds is the most resilient independants and then Starbucks and Costa Coffee (obviously owned by Coca cola).

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Bullish sentiment.

There are 3 coffee chains at the end of a nearby major street. I have noticed that over the past months Starbucks has remained open and doing business whenever permitted, on more days than either Costa or Nero. This may be due simply to enthusiasm of the local concession owners, or Starbucks corporate has been trying harder. There have been days that Starbucks were the only place open. SBUX is in the portfolio of Fundsmith. So I own it through there, and a few shares in my ISA.

Exactly, even if they are not making a profit they can stay open and keep going compared to smaller chains or independents. I think the news in last couple months about their high focus on smaller branches with many takeaway only is interesting, could turn some locations more profitable with less costs.

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Also keep in mind that SBUX has been one of the few companies that actually shown a little empathy for their employees during covid by raising salaries and even compensated those who didn’t work (Wynn Resorts, Starbucks and other companies stepping up to help workers impacted by coronavirus). This isn’t something the smaller chains are/are able to do showing the position Starbucks is in.

Great buying opportunity today after, in my opinion a misunderstanding of the results and guidance. US performance fine in face of pandemic I think, and very strong performance in Chinese market which is expanding even in pandemic.

Highlight numbers for me were 22% increase revenue in China, and that was off 13% increase in stores. So with growing stores and revenues per store I am confident they will continue to grow well in China even if US stays flat.

I am guessing today was maybe some profit taking or just people going crazy with other stocks on top of guidance/results which aren’t obviously good or bad unless you dig a little.

We’ve got the owners yacht in the bay here at the moment, probably easier to nick the yacht what do you think?