Starbucks Corporation Intrinsic Value Calculation – STARBUCKS CORPORATION Reports Record-Breaking Earnings Results for Fiscal Year 2023
August 15, 2023
🌥️Earnings Overview
On August 1 2023, STARBUCKS CORPORATION ($NASDAQ:SBUX) reported its earnings results for its fiscal year ending June 30 2023. Total revenue for the third quarter was USD 9168.3 million, representing a 12.5% increase compared to the same period in the previous year. Additionally, net income rose 25.1% to USD 1141.7 million.
Stock Price
This was a significant milestone for the company, as their stock opened at $101.5 and closed at $101.3, a mere 0.3% decrease from its previous closing price of $101.6. The impressive results were driven by record-breaking customer loyalty and a strong focus on innovation and strategic investments. The company’s impressive performance was due to their high-quality products, new digital initiatives, marketing campaigns, and expanding global presence. Their mobile app, Starbucks Rewards, continues to be a key factor in customer satisfaction as it rewards customers for their purchases and encourages loyalty. Furthermore, their new initiatives such as Starbucks Delivers and Starbucks Now have enabled customers to order ahead or have their coffee delivered right to their doorstep.
Additionally, their strategic investments in technology, such as artificial intelligence and machine learning, have resulted in increased efficiencies in operations and improved customer experiences. Finally, their portfolio of premium offerings such as Reserve and Nitro Cold Brew have allowed them to extend their global footprint and reach new audiences. With the increase in customer loyalty and strategic investments driving its growth, STARBUCKS CORPORATION looks forward to continued success in the coming years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Starbucks Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 35.02k | 3.78k | 10.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Starbucks Corporation. More…
| Operations | Investing | Financing |
| 5.16k | -2.18k | -2.68k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Starbucks Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 28.73k | 37.07k | -7.29 |
Key Ratios Snapshot
Some of the financial key ratios for Starbucks Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.3% | 39.1% | 15.5% |
| FCF Margin | ROE | ROA |
| 8.5% | -40.4% | 11.8% |
Analysis – Starbucks Corporation Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of the wellbeing of STARBUCKS CORPORATION. Through our proprietary Valuation Line, we determined that the intrinsic value of a share of STARBUCKS CORPORATION to be around $120.0. Currently, STARBUCKS CORPORATION is being traded at $101.3, making the stock a fair price that is 15.6% undervalued. This presents an attractive investment opportunity for those looking to invest in STARBUCKS CORPORATION. More…
Peers
In the fast-paced world of coffee, there are always new challengers trying to take down the reigning champion, Starbucks Corp. In recent years, McDonald’s Corp, Domino’s Pizza Inc, and Chipotle Mexican Grill Inc have all made moves to try and capture a larger share of the market. While each company has its own unique approach, they all share one common goal: to unseat Starbucks as the king of coffee.
– McDonald’s Corp ($NYSE:MCD)
McDonald’s Corp is a fast food restaurant chain. The company was founded in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they introduced the Speedee Service System, which was a precursor to the fast food restaurant. The company began franchising in 1955 and now operates over 36,000 restaurants in more than 100 countries. McDonald’s Corp has a market cap of 181.34B as of 2022, a Return on Equity of -90.17%. The company has been struggling in recent years with declining same store sales and increased competition from other fast food chains.
– Domino’s Pizza Inc ($NYSE:DPZ)
Domino’s Pizza Inc is a publicly traded company with a market cap of 11.37B as of 2022. The company has a Return on Equity of -11.44%. Domino’s Pizza Inc is a pizza delivery company. The company was founded in 1960 and is headquartered in Ann Arbor, Michigan.
– Chipotle Mexican Grill Inc ($NYSE:CMG)
Chipotle Mexican Grill Inc is a American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France. As of December 31, 2020, there were 2,742 Chipotle restaurants in operation.
The company has a market cap of 42.81B as of 2022 and a Return on Equity of 27.52%. Chipotle Mexican Grill Inc is a company that focuses on providing its customers with a fast casual dining experience. The company has been able to grow its market cap and ROE through its expansion into new markets and by providing a quality product and dining experience to its customers.
Summary
Investors in Starbucks Corporation have much to be pleased with in the company’s recent earnings report. Total revenue for Q3 was reported as USD 9168.3 million, representing a healthy 12.5% growth from the same period last year. Furthermore, net income for Q3 jumped 25.1% to USD 1141.7 million. This positive news bodes well for the company’s future prospects, and investors may consider positioning themselves accordingly.
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