Having been around since 1971, Starbucks (SBUX 0.27%) is one of the most widely recognized brands in the world. And that's because it has dominated its industry, essentially creating a new category and trend of consumers buying premium prepared coffee products and not making them at home. 

Naturally, the company's success has been a boon for investors. Since its initial public offering (IPO) in 1992, Starbucks has produced a monster all-time return of 30,600%, beating the S&P 500 and Nasdaq Composite by insanely wide margins. If dividends were reinvested, the return would be a whopping 38,400%. This means that a $10,000 investment at Starbucks' IPO would be worth more than $3 million today.  

But what does the future hold? Is there still room to run for this top coffee stock? 

History of growth 

It shouldn't be a surprise that the company's primary growth strategy has been, and continues to be, opening more stores. Since its founding in 1971, Starbucks has experienced rapid expansion. As of April 2, there were nearly 37,000 Starbucks stores worldwide, almost double the 19,000 just 10 years ago. 

Additionally, Starbucks' objective is to increase same-store sales at each location. This includes driving greater customer traffic and higher spending. In the latest fiscal quarter (Q2 2022), the business saw transactions jump 6% and the average ticket size rise 4% year over year, clearly a good sign during what has been a challenging macroeconomic environment. 

And lastly, the executive team wants to benefit from operating leverage. In other words, management aims to grow sales faster than expenses as the business continues scaling up. Investing in better training for the labor force, coupled with ongoing advances with in-store automation, can result in better store-level profitability. Starbucks' Q2 operating margin of 15.2% was a huge upgrade from 12.4% in the prior-year period. 

Starbucks' incredible brand strength is key to its lasting success. The brand stands for premium caffeinated beverages and food products, served consistently. And it has been aided by the company's digital foundation. Starbucks currently has 30.8 million Rewards members in the U.S., making it difficult for rivals to compete with this type of loyalty. 

Is Starbucks a buy right now? 

I wouldn't bet on Starbucks producing the same sort of monster return over the next 30 years that it did in the past. That's because this is already such a huge company, with stores in 80 countries across the globe. For a business with such a massive presence, investors are probably thinking that sales can only grow in line with, or slightly above, gross domestic product. 

But that would be the wrong assumption. Management believes that the business can have 55,000 stores open by the end of the decade, resulting in a substantial expansion of the physical footprint. China will be a big growth engine, where the leadership team sees outsized growth opportunities, as the middle class there is huge with tremendous spending power. 

Moreover, Starbucks will continue investing in product innovation, developing new store formats to increase access and convenience for customers, bolstering its already leading digital presence, and focusing on international expansion. Between fiscal 2022 and fiscal 2025, management believes Starbucks can increase adjusted earnings per share in the high-teens range annually. 

That forecast could certainly help to lift shares higher going forward. However, investors need to factor in the current price-to-earnings ratio of about 33, which isn't cheap by any means. At the end of the day, Starbucks is a mature business that isn't going to see the same growth it experienced in the past.  

But for those looking for a steady, reliable, and dominant company to add to a portfolio, Starbucks could be a good choice. The current dividend yield of 2% helps, too.