Starbucks Corp. (NASDAQ:SBUX) is a global coffee giant with a market cap of $83 billion. Founded in 1971, Starbucks has over 38,000 coffeeshop stores across 86 global markets. The company operates in North America, International, and Channel Development segments, with the US being its largest market.
Starbucks is known for its high-quality coffee products and has a strong brand presence worldwide. The company has successfully combined offering top-notch products with an exceptional customer experience, setting it apart from its competitors. Despite facing competition in the market, Starbucks remains a leader in the coffee industry.
While Starbucks may not be growing as rapidly as before, it still delivers strong financial results. The company has increased its dividend for 14 consecutive years, with a 10-year dividend growth rate of 17.1%. The stock currently offers a 3.1% yield, which is higher than its historical average.
Looking ahead, Starbucks is expected to continue growing its earnings per share, with a projected annual growth rate of 16% over the next three years. The company has a solid financial position, although it faces risks such as competition, rising input costs, and economic challenges in key markets like China.
From a valuation perspective, Starbucks appears undervalued, with a fair value estimate of $98.04. The stock is trading at a lower P/E ratio compared to its historical average, making it an attractive investment opportunity for long-term investors. Overall, Starbucks remains a strong contender in the QSR industry, offering potential for high returns for shareholders.