Starbucks Corporation Intrinsic Value – STARBUCKS CORPORATION Reports Third Quarter Fiscal Year 2023 Earnings Results on June 30, 2023
August 24, 2023
🌥️Earnings Overview
On June 30 2023, STARBUCKS CORPORATION ($NASDAQ:SBUX) released its third quarter fiscal year 2023 financial results. Total revenue of USD 9168.3 million was reported, representing a 12.5% increase from the same time period in the prior year. Net income also increased 25.1%, amounting to USD 1141.7 million.
Price History
The company’s stock opened the day at $101.5 and closed at $101.3, representing a 0.3% decrease from its previous closing price of $101.6. Overall, STARBUCKS CORPORATION reported solid earnings growth in its third quarter fiscal year 2023, driven by growth in its Asia-Pacific region. 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
We at GoodWhale recently conducted an analysis of the wellbeing of STARBUCKS CORPORATION. After our proprietary Valuation Line was applied, we determined that the fair value of the STARBUCKS CORPORATION share should be around $119.9. However, at the current market price, shares are currently trading at $101.3, a fair price undervalued by 15.5%. At GoodWhale we believe that there is a great opportunity to invest in STARBUCKS CORPORATION at this time, as the stock appears to be undervalued based on our findings. We highly recommend that investors take advantage of this mispricing and purchase the stock as soon as possible before the market corrects itself and prices rise again. More…
Peers
In the fast-paced world of coffee, there are always new challengers trying to take down the reigning champion, Starbucks Corp. In recent years, McDonald’s Corp, Domino’s Pizza Inc, and Chipotle Mexican Grill Inc have all made moves to try and capture a larger share of the market. While each company has its own unique approach, they all share one common goal: to unseat Starbucks as the king of coffee.
– McDonald’s Corp ($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
For the third quarter of the fiscal year 2023, STARBUCKS CORPORATION reported impressive growth in total revenue and net income. Total revenue for the quarter was USD 9168.3 million, representing a 12.5% increase from the same period of the previous year. Net income increased 25.1% to USD 1141.7 million. These results demonstrate strong performance from the company, and investors should take the growth as a positive sign for the future.
The company’s resilient performance amidst challenging economic conditions is a strong indicator of its ability to perform in any market. Investors should consider allocating some of their portfolio to STARBUCKS CORPORATION.
