Starbucks Corporation Stock Fair Value – Investors Debate: Is Dutch Bros or Starbucks the Best Stock to Buy?

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When investors are considering which stock to buy, Dutch Bros and Starbucks are often two of the top contenders. Both companies offer tremendous opportunities for growth, but which one is the best for you? When considering the two, one important factor is the STARBUCKS CORPORATION ($NASDAQ:SBUX). The company boasts a wide variety of products, including brewed coffee, espresso-based hot drinks, full-leaf teas, pastries, snacks, and even merchandise. As a result, it has grown into one of the most iconic brands in the world.

The Starbucks Corporation’s stock has also been a solid investment for many investors. Furthermore, Starbucks pays a quarterly dividend, which can provide investors with an additional source of income. But when it comes to stability and long-term performance, the STARBUCKS CORPORATION is an undeniable leader in the coffee industry. Its strong brand recognition and steady performance make it an attractive option for any investor looking for a safe bet.

Stock Price

On Thursday, STARBUCKS CORPORATION stock opened at $95.1 and closed at $95.3, a 0.7% increase from its last closing price of $94.7. Despite this marginal gain, investors are still debating which company’s stock would prove the most lucrative. In regards to Starbucks, the company has managed to establish itself as a worldwide leader in the coffee industry. It has done so by expanding its product portfolio and has recently introduced innovative products such as cold brew and Nitro drinks.

Additionally, Starbucks’ international presence has enabled it to benefit from global growth opportunities, while its loyalty program has improved its customer experience and aided in driving sales. On the other hand, Dutch Bros Coffee is a relatively small coffee company based in Oregon which focuses mainly on the US market. Despite its smaller size, Dutch Bros Coffee has managed to capture a large share of the coffee market in the US and continues to grow rapidly through its expansion plans. The company’s focus on quality and customer service also makes it a favorite among coffee lovers. Overall, while both companies seem promising in terms of stock performance, investors must carefully consider their long-term objectives before deciding which company’s stock to purchase. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Starbucks Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Starbucks Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Starbucks Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Starbucks Corporation are shown below. More…

Analysis – Starbucks Corporation Stock Fair Value

At GoodWhale we have done an in-depth analysis of the financials of STARBUCKS CORPORATION. Our proprietary Valuation Line shows that the intrinsic value of the STARBUCKS CORPORATION share is around $118.4. Currently, the STARBUCKS CORPORATION stock is traded at $95.3, which is a fair price that is undervalued by 19.5%. We believe that this stock represents a great opportunity for investors looking to add value to their portfolios. 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 is a leading coffeehouse chain and coffee company with a long-term track record of growth. This suggests that the company’s stock may be relatively undervalued compared to its peers. Furthermore, Starbucks has a strong competitive advantage due to its wide product portfolio, customer loyalty, and global presence. Investors should consider buying shares of Starbucks if they are looking for a safe way to gain exposure to the global consumer sector.