Starbucks is an American coffee company and eponymous coffee chain. At the moment, the chain of coffee houses has more than 30 thousand points in almost 100 countries of the world. By popularizing roasted coffee, Starbucks has established itself as the second wave in the US coffee business, initially differentiating itself from other coffee businesses, focusing on the taste and quality of the coffee sold, as well as the quality of customer service. 

It was by following the example of Starbucks that new coffee shops became more cozy and attractive in terms of design. It should be noted that the company’s shareholders are large investment funds such as: The Vanguard Group, BlackRock Fund Advisors and Capital Research & Management Co. 

The company has practically no competitors in the coffee sales segment. However, there are other large corporations that are taking significant market share from Starbucks. 

Examples of such companies are McDonald’s and Yum Brands. 

Q4 Revenue: $ 6.7 B (-5% YoY) 

Q4 Operating Income: $ 903M (-22% YoY) Q4 net income: $ 622M (-27% YoY) 

Earnings per share last quarter: $ 0.61, above the $ 0.55 forecast 

The company’s business has been hit hard during the pandemic. 

However, management is taking decisive steps to restore previous financial performance. 

Distribution of revenue by business segment: Americas – 69.65% 

Internationals – 21.89% Channel Development – 8.19% 

Corporate and Other – 0.28% 

EPS forecast for the current quarter: $ 0.52 

The company’s financial position cannot be called ideal due to its high debt load – the ratio of net debt to EBITDA at the end of 2020 is 6.3, which is quite a lot for a mature company. 
Despite the fact that the company has no obvious competitors on the market, there is competition among each institution. Because there is always the same cozy coffee shop nearby with lower prices. But, it is worth noting that even with this, the demand for the company’s products remains stable due to brand awareness. Thus, Starbuck is an international company with stable demand, but its financial performance remains at an average level.

Get advice on company shares