Starbucks Intrinsic Value Report
Intrinsic Value Report
-Starbucks Corporation-
Table of Contents
Section
A. Starbucks Facts
Person in Charge
B. Industry Analysis C. Company Analysis I -Target Market & Position -Company Strategies -Competitive Analysis -Strength & Weakness D. Stock Recommendation
• • • • •
Starbucks is established in 60 countries worldwide It has a very well known brand name Starbucks will be opening in most of the Canadian Target stores Starbucks has signed an agreement to sell its Seattle’s Best coffee in US Burger Kings and to sell its food products in Canadian Sobeys food stores • After 4 decades of being in the introductory and growth stage, Starbucks has just entered the mature stage of its life cycle • The specialty coffee market is expected to grow 7-9% annually over the next few years. A Starbucks Grande coffee has over 4 times the amount of caffeine as Red Bull Now after hearing these facts I want to ask……… with only this information Who thinks the shares are over priced? Who thinks the shares are underpriced? Who thinks the shares are priced just right?
Specialty Coffee Industry
Industry Sensitivity
Industry Revenue & Cycle Competitive Analysis
External Analysis
Porter Five Forces Model Market Estimation
* Prepared by Ji Hyee Jeong
Specialty Coffee Industry
Specialty Coffee Industry
Specialty coffee is the term commonly used to refer to "gourmet" or
"premium" coffee. Starbucks is a leading specialty coffee retailer and US one of the best know brand today. 40% Coffee Market Size
Others 60% $32Bil
Total $80.76bil
US Coffee Market & Specialty Coffee Market
The coffee industry is very concentrated at the top and fragmented at the bottom . (Top 50 companies - 70% of the sales)
Dunkin-16.1% Starbucks- 32.6% Others - 51.3%
Specialty coffee market =$16Bil
Specialty coffee represents about a 37% volume share but nearly 50% value against the US total. (Starbucks, Caribou coffee)
Caribou 2.5%
Starbucks- 62.5%
Others – 35%
-Starbucks Corporation-
Table of Contents
Section
A. Starbucks Facts
Person in Charge
B. Industry Analysis C. Company Analysis I -Target Market & Position -Company Strategies -Competitive Analysis -Strength & Weakness D. Stock Recommendation
• • • • •
Starbucks is established in 60 countries worldwide It has a very well known brand name Starbucks will be opening in most of the Canadian Target stores Starbucks has signed an agreement to sell its Seattle’s Best coffee in US Burger Kings and to sell its food products in Canadian Sobeys food stores • After 4 decades of being in the introductory and growth stage, Starbucks has just entered the mature stage of its life cycle • The specialty coffee market is expected to grow 7-9% annually over the next few years. A Starbucks Grande coffee has over 4 times the amount of caffeine as Red Bull Now after hearing these facts I want to ask……… with only this information Who thinks the shares are over priced? Who thinks the shares are underpriced? Who thinks the shares are priced just right?
Specialty Coffee Industry
Industry Sensitivity
Industry Revenue & Cycle Competitive Analysis
External Analysis
Porter Five Forces Model Market Estimation
* Prepared by Ji Hyee Jeong
Specialty Coffee Industry
Specialty Coffee Industry
Specialty coffee is the term commonly used to refer to "gourmet" or
"premium" coffee. Starbucks is a leading specialty coffee retailer and US one of the best know brand today. 40% Coffee Market Size
Others 60% $32Bil
Total $80.76bil
US Coffee Market & Specialty Coffee Market
The coffee industry is very concentrated at the top and fragmented at the bottom . (Top 50 companies - 70% of the sales)
Dunkin-16.1% Starbucks- 32.6% Others - 51.3%
Specialty coffee market =$16Bil
Specialty coffee represents about a 37% volume share but nearly 50% value against the US total. (Starbucks, Caribou coffee)
Caribou 2.5%
Starbucks- 62.5%
Others – 35%