Starbucks: I Finally Bought This Coffee King


  • Starbucks is experiencing a major post-earnings pullback, with the stock dropping nearly 40% from its high.
  • Dutch Brothers, a competitor, is selling at a higher valuation than Starbucks despite being less profitable. I would be more excited about the re-rating of the bigger brand.
  • Starbucks is facing challenges in China, with declining same-store comp sales and a lack of foreign influence affecting its business.
  • The joint venture with TATA to open 1,000 Starbucks stores in India by 2028 could be the next leg of the growth story.

Starbucks coffee sign hanging outside a shop


A major post earnings pull back

Back in 2023,

I wrote an article surmising that a recessionary environment where the consumer would have to tighten their wallet may benefit inferior products like J.M. Smucker’s(SJM) Folgers brand. I believed

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SBUX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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