Starbucks Corp (NASDAQ:SBUX) Earnings Model
Author: Jordan Weisberg, Published: October 23, 2021 Category: Earnings Preview (Prior to the F4Q2021 SBUX Results)
Notes From the Model Developer: I strongly believe that Starbucks growth will continue to be substantial. Watching the company grow over the last 10 years has been nothing short of remarkable. With a brand known for excellence in coffee and incredible service, there are no signs for any decline in sales. Especially after covid hopefully ending soon or at least being controlled things should start to get back to normal. As you stated in your presentation, the integration of mobile ordering and curbside pickup made up for those sales lost from going into the physical stores. I believe the mobile ordering industry has helped businesses grow. And brands like Starbucks who already have a substantial market share, now have an even larger opportunity to make money even with rising inflation rates. My three main aspects I will be focusing on are: 1) I am expecting Growth from around 33,000 to 55,000 stores over the next 10 years, this really stands out because that means the CFO expects revenues to basically double over the next 10 years. Not even including increasing online sales and inflation.
2) I really could also see the licensing opportunities as a huge aspect to really help continue Starbucks huge growth potential. Starbucks is expecting more growth outside of the US and China, adding other countries especially larger ones with more people such as India, Japan, and Canada, would offer substantial growth. 3) The part expecting enterprise growth to go from 8-10% offers some substantial growth opportunities with a new channel development occurring. By channel development I understand this as the integration of more online sales and mobile ordering/curbside. The entire mobile ordering system essentially has grown the entire fast-food industry, especially helping people who have severe anxiety and do not like talking in public to place their order...click to continue reading
2) I really could also see the licensing opportunities as a huge aspect to really help continue Starbucks huge growth potential. Starbucks is expecting more growth outside of the US and China, adding other countries especially larger ones with more people such as India, Japan, and Canada, would offer substantial growth. 3) The part expecting enterprise growth to go from 8-10% offers some substantial growth opportunities with a new channel development occurring. By channel development I understand this as the integration of more online sales and mobile ordering/curbside. The entire mobile ordering system essentially has grown the entire fast-food industry, especially helping people who have severe anxiety and do not like talking in public to place their order...click to continue reading
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Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.