In this video, we will be discussing Starbucks, whose stock market symbol is SBUX. We will review the basics of Starbucks' business, how it generates profits, look at some numbers, and then try to determine the fair value of a Starbucks stock to see if investing in it is worthwhile today.
CEO Brian Niccol is working his magic again. After being poached away from Chipotle, Brian Niccol is achieving significant success at Starbucks, accelerating comparable store sales growth to 7.9% in the most recently completed quarter.
At Starbucks, he's already facilitating significant improvement. The stock price is up meaningfully, sales are increasing, 90-day active rewards members are increasing to 36 million, and I like the strategy of slowing down new store development until you get the operations corrected, right?
