Why Starbucks Is Poised to Perk Up

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty coffee retailer Starbucks (NASDAQ: SBUX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Starbucks and see what CAPS investors are saying about the stock right now.

Starbucks facts

Headquarters (Founded)

Seattle (1985)

Market Cap

$39.6 billion

Industry

Restaurants

Trailing-12-Month Revenue

$13.3 billion

Management

Founder/Chairman/CEO Howard Schultz
CFO Troy Alstead

Return on Equity (Average, Past 3 Years)

29.4%

Cash/Debt

$2.0 billion / $549.6 million

Dividend Yield

1.6%

Competitors

Dunkin' Brands (NASDAQ: DNKN  )
McDonald's
(NYSE: MCD  )
Tim Hortons
(NYSE: THI  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 80% of the 8,143 members who have rated Starbucks believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, Flygal5, tapped Starbucks' recent acquisition as a particularly attractive opportunity:

I am adding [Starbucks] ... because of the purchase of [Teavana Holdings (UNKNOWN: TEA.DL2  ) ]. I think this is a great development. I love tea and I could not understand why Teavana had stores that only sold tea for making at home, the tea house experience is a no brainer. I can hardly wait to watch Howard [Schultz] roll this new concept out across the world. Can they grow to be as big as the coffee houses? I do not know, but I love the thought of the Starbucks know how applied to tea.

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  • Report this Comment On December 11, 2012, at 8:31 PM, HuiyiChen wrote:

    Thumb up on the article!

    Beyond the financial sheets, SBUX's global growth makes the stock appealing. I travelled to Bali in early 2012 and found two SBUX which completely surprised me- coffee is dirt cheap there. New stores are opening in Australia (where I live) and opening in China and India (what I read), I think one of these days we're going to a Starbucks and find a new store in the first one..

    There's still a bit of room for the price to grow

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