RSS Updates
Email Updates
Starbucks growth continues to defy the laws of gravity. Revenue in its last reported quarter grew 21% as its total number of stores rose to over 12,000.
But, consumer spending and it huge footprint could be the company’s worst enemies. It has not gone through a recession with anywhere near the number of retail outlets it has now.
Other companies have also watched Starbucks and learned a lesson. McDonalds is now rolling out premium coffee. Success breds imitation.
According to Yahoo! Finance, Starbucks has a P/E of over 50. That does not leave much room if the company see slowing in same store sales, even for a month or two.
Investors have already show their concern about Starbucks last quarter by selling off the stock. It is a great company.
With no margin for error.
Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.
Buzz up!
Digg
Fark
Facebook
Tip'd
Tweet This
