Starbucks (SBUX)

[iam802]

Starbucks closing 600 stores in US.

Starbucks 'indicator' also no good.

http://www.marketwatch.com/news/story/s ... dist=msr_7

[kennynah]

starbucks is also slowing in their opening of new stores overseas...

starbucks originally planned to close only 100 US stores...but later they deicded 600 instead... they are certainly seeing a slow down in overall economy... their coffee is not cheap even by US standards... why would people spend $3-4 for a cuppa...these americans are cheapos...they even tahpau their breads for lunch...who would buy coffee then?

[HengHeng]

actually they are pretty decisive in closing the stores . At least short pain better than long pain. I still believe it is a good bussiness decision. When cannot make it .. just chop of the trade.

[winston]

About 20 years ago, when I saw Starbucks sprouting up all over the US, especially in the airports, I wrote to Starbucks to see whether they want to expand into Asia.

At that time, they told me that they wanted to focus in North America. In addition, they want to own the stores and do not want any franchises

So I just bought their stocks. After a while, I sold it when I saw many other coffeeshops coming up.
Also, I think Jimmy Rogers was also advising people to sell Starbucks as there were too may coffee chain and that the PE was getting very high.

Should have continued writing to them about their Asian expansion

[kennynah]

w : u picked a winner....rode it until it lost steam.... u r good !!! much to learn from your power of foresight...

some companies decide that they can do it by themselves....run their own shops for better control ... but everything has a price tag....direct ownership can lead to higher costs of operations vs franchising...

lately, have u identified any upcoming US listed brands that'll be the next leader when this market turns up finally?

[kennynah]

considering that in 1992, when starbucks listed, it was a penny share counter, started trading at a mere ~60cents

by 1998, its shares went up 10x or 1000%, and traded at ~$6

in the next 8 years, to 2006, starbucks shares went to a high of $40, making a total of ~ 7000% returns on original investment...

in this sense, it is really a star"$$" ..... as the name imply...star"bucks"

of late, since 2006, its share price has dropped continuously, to current $15.60 or about 38% of its all time high...

and for those who bought them at $40, they have been getting star"f**k**"....

of cos, the very long term, aka coffin-term investors, who bought at 60cents, now still have a 2500% profit to shout about... so, there's some truth to the buy-hold-and-bring-to-coffin investment technique

[kennynah]

next time, easier to find ah koon kopitiam

consider buying one of their coffee mugs...as souvenir ...maybe a relic after they completely collapse

Starbucks to close 61 Australian outlets
7/29/2008 10:50 AM ET

(RTTNews) - Starbucks Coffee International, a wholly-owned subsidiary of Starbucks Coffee Co. (SBUX: News, Chart, Quote ), revealed Tuesday that it was downing shutters on 61 of its 84 underperforming locations in Australia by August 3, 2008, as part of its restructuring efforts.

[kennynah]

they took at 17cts restructuring 1 time charge,,,,stores closing costs.....

otherwise, they earned 16cents

Starbucks falls to loss in Q3 - quick facts 1
7/30/2008 4:12 PM ET

(RTTNews) - Starbucks Corp. (SBUX: News, Chart, Quote ) reported third-quarter reported a net loss of $6.7 million, compared to net profit of $158.3 million for the same period a year ago. Loss per share for the quarter was $0.01, compared to profit of $0.21 per share earned in the prior year period. On average, 14 analysts polled by First Call/Thomson Financial expected earnings of $0.18 per share.

Consolidated net revenues increased 9% to $2.6 billion for the third quarter of 2008 from $2.4 billion for the third quarter of 2007. Twelve Wall Street analysts had consensus revenue estimate of $2.61 billion.

[helios]

Starbucks signs on with Unilever

Coffee shop operator Starbucks Coffee Co. has signed an exclusive licensing agreement with Dutch food and personal care products maker Unilever NV to make and distribute Starbucks ice cream in the US and Canada. The ice cream market in both countries is worth approximately US$17 billion.

The ice cream is not sold in Starbucks cafes, and the company does not plan to sell it any time soon -- most stores do not have freezers, spokesman Alan Hilowitz said.

Unilever plans to position the ice cream as "super-premium" with classic coffeehouse flavors. The deal expands an existing relationship for making, marketing and distributing Starbucks Tazo ready-to-drink drinks.

Unilever currently markets brands including Ben & Jerry's, Breyers, Good Humor, Klondike and Popsicle. Its annual revenue from ice cream is more than US$6 billion.

San's comment: this one has a goovy [low-fat] packaging ... frappucinó ice-cream ...

Source: FoodInternational.net
Date: 23 Sept 2008

[iam802]

A very common 'mistake' I see in US companies.

They keep trying to create new markets or channels within their home market.

And then bring it overseas.

Why not do it the other way? Look at big consumer markets like Shanghai, Tokyo (yes, the cities itself, rather than the country) and get something done there.

And instead of Starbucks ice cream...use another name (acquire an establish brand if need be).