Starbucks- I’ll drink to them!

Last year like a late-day caffeine burst, Starbucks shares rocketed 5% after record Q2 results. Why did this happen?

  • same store sales shot up 7%
  • Net revenues up 18%
  • Earnings per share up 18% from Q2 2014

Put it this way, CEO Howard Schultz called 2nd fiscal quarter “a stunning quarter for Starbucks on almost every level”

That was Q2.

What do the corporate earnings hold tomorrow?

Hopefully good news after all the volatility with the NYSE at the moment due to the oil fiasco. 

What am I looking for in the Starbucks statement: 

  1. How did the company perform last quarter?
  2. What was Q4 compared to Q2 and Q3 last year? 
  3. Has revenues grown to plan? 
  4. What is the cost of the sale? – Is it more expensive for SBUX to sell its goods

Cash Flow Statement:

  1. Is it printing cash or burning it?

Legal Proceedings:

  1. Lawsuits? What? Why? Exposure? How much?

Bottom Line:

  1. Is it making money?!
  2. Is it making as much as expected? 
  3. What is the opportunity in the next few quarters? 

If it is anything like last year, I would thoroughly recommend you open a long position and leverage before the statement is posted… If I am wrong, I’ll happily buy you a venti caramel macchiato or whatever your fix is..

The Young Investor



About andrepartridge
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