Starbucks Corporation Intrinsic Value – STARBUCKS CORPORATION Reports Third Quarter FY2023 Earnings Results on August 1 2023
August 8, 2023
🌥️Earnings Overview
On August 1st 2023, STARBUCKS CORPORATION ($NASDAQ:SBUX) reported its financial results for the third quarter of FY2023, which ended June 30th 2023. The company saw a total revenue of USD 9168.3 million, a 12.5% year-on-year growth, as well as a 25.1% year-on-year increase in net income, amounting to USD 1141.7 million.
Stock Price
On Tuesday, August 1 2023, STARBUCKS CORPORATION reported its third quarter earnings results for the fiscal year 2023. The company’s stock opened at $101.5 and closed at $101.3, a decrease of 0.3% from the previous closing price of $101.6. Overall, STARBUCKS CORPORATION reported solid results for the third quarter of the fiscal year 2023, despite the slightly lower net income. The company’s strong financial performance, combined with its robust balance sheet and cash flows, indicates that it is well-positioned for continued success in the future. 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
At GoodWhale, we’ve analyzed the fundamentals of STARBUCKS CORPORATION and believe that its intrinsic value is around $120.1, based on our proprietary Valuation Line. This means that the current market price of $101.3 is undervalued by 15.7%. Therefore, for those who are looking to invest in STARBUCKS CORPORATION, now could be a great opportunity to purchase the stock at a fair price. More…
Peers
In the fast-paced world of coffee, there are always new challengers trying to take down the reigning champion, Starbucks Corp. In recent years, McDonald’s Corp, Domino’s Pizza Inc, and Chipotle Mexican Grill Inc have all made moves to try and capture a larger share of the market. While each company has its own unique approach, they all share one common goal: to unseat Starbucks as the king of coffee.
– McDonald’s Corp ($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
Starbucks Corporation reported strong financial results for the third quarter of FY2023, with a 12.5% year-over-year increase in total revenue and a 25.1% year-over-year increase in net income. This indicates a positive outlook for investing in the company, as revenue and net income are two key indicators of growth and profitability. These results demonstrate the company’s ability to continue to generate success and long-term shareholder value.
