Why Starbucks Is Poised to Perk Up

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty coffee retailer Starbucks has earned a respected four-star ranking.

With that in mind, let's take a closer look at Starbucks and see what CAPS investors are saying about the stock right now.

Starbucks facts

Headquarters (Founded)

Seattle (1985)

Market Cap

$39.6 billion

Industry

Restaurants

Trailing-12-Month Revenue

$13.3 billion

Management

Founder/Chairman/CEO Howard Schultz
CFO Troy Alstead

Return on Equity (Average, Past 3 Years)

29.4%

Cash/Debt

$2.0 billion / $549.6 million

Dividend Yield

1.6%

Competitors

Dunkin' Brands
McDonald's

Tim Hortons


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 80% of the 8,143 members who have rated Starbucks believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, Flygal5, tapped Starbucks' recent acquisition as a particularly attractive opportunity:

I am adding [Starbucks] ... because of the purchase of [Teavana Holdings ]. I think this is a great development. I love tea and I could not understand why Teavana had stores that only sold tea for making at home, the tea house experience is a no brainer. I can hardly wait to watch Howard [Schultz] roll this new concept out across the world. Can they grow to be as big as the coffee houses? I do not know, but I love the thought of the Starbucks know how applied to tea.

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The article Why Starbucks Is Poised to Perk Up originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of McDonald's, Starbucks, and Teavana Holdings and has short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend McDonald's and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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