SBUX

[rffrydr]

So there is the $3 cup of coffee the old timers laugh at. My neighbor goes out of his way for the Arco Fillup--and my SBUX toting friends have been pushed to that on occasion think the coffee there is satisfactory.

But of course it's a lifestyle question, built on the core of their business, selling drugs. As drugs go this is cheap. Esp relative to cigarettes. If you doubt just check out what SBUX success has done the the Jamba Juice menu (all new Brazilian guanara (sic) caffeine nut) or the proliferation of SBUX drive-thrus. When you got to idle your car in line that can only mean one thing: you're hooked.

Speaking of which, they've made their move on the liquor aisle of your neighborhood RiteAid--going after the creme-liquour market where they're actually the low-cost leader! (next to Prince Charles' private reserve).

Remember when they were going to be a Web Portal??? Big price drop. But now they're getting into the new Movie distribution pipeline with the Bee. Wow.

Which begs the question of whether SBUX can accomodate the non-drinkers such as myself, asian asians and the children for another leg up. The Strawberry/Creme has gone along way for the kids. And the green tea blackberry frap's a hit in Asian San Gabriel Valley. Was just in first SBUX here with Chinese signage. The teas all come first. Apparently, offshore, there's some problem with the "10,000" permutations of orders. No-one likes to feel stuped. Esp. when a "tall" is a small. They also have "kid" sizes. I've seen mothers shopping in Target with all the kids with SBUX cups. I wonder if frapps or chai are considered acceptable drinks for kids these days.

As for myself: I've been sucked in via my friends. I've found accomodations with the Venti Vanilla Creme 3.75 with premium top of whipped creme, and ample additions of half-n-half and nutmeg. SBUX probably doesn't count on these quanties of "extras" but makes for one of the best milk shake values around.


And there employee committment makes for high level of quality control (against Coffee Bean).

Hard to step in front of this. As likely as not they'll be last down. But do you see em trying to sell off today? Sooooo cute!

[rffrydr]

Traded up all night long. Down today and far off FEB.
_________________
Today is the Tomorrow you worried about Yesterday!

[rffrydr]

Brand Names in India:

http://www.nytimes.com/reuters/business/business-starbucks-starstrucks.html?_r=1&oref=slogin
_________________
Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Yes, read all about it at http://www.starbucksgossip.com/

[rffrydr]

CNBC has run several pieces on SBUX today--

[rffrydr]

Banana-creme before the fall?

http://stockcharts.com/h-sc/ui?s=SBUX&p=W&b=5&g=0&id=p36080945135

I guess that's too symetrical to be a double top, right? Our old favorites, SBUX, CAT, $HUI, IFN, PD etc. have been rotated out; GOOG, CME, BAC, BA holding proud.
_________________
Today is the Tomorrow you worried about Yesterday!

[rffrydr]

See the China board for "effect."

Don't know if this means anything but previous summer gap did nothing for market. And here on "Greatest Black Friday of History"

http://stockcharts.com/h-sc/ui?s=SBUX:$BKX&p=D&b=5&g=0&id=p95602720502
_________________
Today is the Tomorrow you worried about Yesterday!

[rffrydr]

Yeahstatus is the driver but here in Montery Park, they want to but 1. don't like anything on the menu (except the greentea frappacinos for the girls) 2. are intimidated on how to order. Meanwhile the boba tea cafes are getting pretty much the same price and the green circle logo has found many applications.

[HenryTo]

The Chinese would soak up the SBUX culture because it is a status symbol. This is not too unsimilar to the purchases of the latest cell phones, Prada bags, Burberry, etc. Only that SBUX is relatively cheap. For US$5, one can be living the "high life." So why not?

[rffrydr]

As do I. The 1.99 WayPort from MickyDees via SBC is the way to go. Had high hopes this (being Deutche Telecom) might help me out over the pond. Fat chance: when available 50cent/minute roaming.

Starbucks itself was notable for it's absence. A trophy store in the big cities for the Americans. But the europeans don't bite. Can't smoke and don't drink out of paper. Also seems to be espresso or nothing. I definitely would not bet on expansion there. Chinese....?

Speaking of McDonalds', just sampled the new SBUX "egg McMuffin." It's good...but where are we going with this???

[HenryTo]

Well, I still have my $19.95 a month Wi-Fi service - so SBUX is still raking it in. SBUX just reported September same-store sales. SBUX is now up a further 4.6% in AH trading - after being up 5.7% today.
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LOS ANGELES, Oct 4 (Reuters) - Starbucks Corp. (SBUX.O: Quote, Profile, Research) on Wednesday said sales at its coffee shops open at least 13 months rose 6 percent in September, topping Wall Street estimates, and its shares rose nearly 5 percent after the bell.

Five analysts polled by Reuters had expected the coffee chain operator to post a rise of between 2 percent and 5 percent.

Shares rose to $37.62 in electronic trading, up 4.6 percent, after closing at $35.96 on the Nasdaq. (Additional reporting by Vikram Subhedar in Bangalore)

[HenryTo]

Yes, rffrydr, that does pose a problem. But I'd most likely be canceling my $19.95 a month hot-spot service with SBUX and T-mobile in the next few days so that's some consolation! Starbucks isn't as fun of a hang-out place as it used to be (i.e. today vs. over three years ago).

[nodoodahs]

After it fills the bottom of its exhaustion gap may be a good short entry.
[edit - you can tell I hadn't seen today's chart when typing that!]

I's be right but early. Oh, bother.
_________________
He was wearing my Harvard tie. Can you believe it? My Harvard tie. Like oh, sure, HE went to Harvard.

[rffrydr]

4% comps is the end-of-the-world--and for the stock, not the business, it is.

More guts and I'd taken an outright short--only problem, I've become a customer in the course of my research!

[HenryTo]

Nice call. SBUX down more than 9% in after-hours trading:
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Starbucks' Sales Slide on Frozen Drinks
Wednesday August 2, 9:46 pm ET
By Elizabeth M. Gillespie, AP Business Writer
Starbucks Says Comparable-Store Sales Rose Four Percent in July, Down From 7 Percent in 2005

SEATTLE (AP) -- Feverish summer demand for frozen drinks in the morning gummed up lines at Starbucks Corp. last month, slowing sales and presenting a rare operational snag for the world's largest specialty coffee retailer.

The company said Wednesday its comparable-store sales, those at stores open at least a year, rose 4 percent in July, down from 7 percent a year earlier.

Executives blamed the slide on unexpectedly high demand for Frappuccinos and other frozen blended beverages in the peak morning hours, when baristas generally crank out more hot espresso drinks.

Chief Executive Jim Donald said the company was working to solve the problem by having more baristas work the morning peak hours, among other possible changes, including reducing the time it takes to blend cold drinks.

Nevertheless, Wall Street focused on the sales dip. Starbucks shares closed at $33.30 on the Nasdaq Stock Market on Wednesday, then plunged $3.04, or 9 percent, in after-hours trading.

"While this is an issue, and we're working on it, and we're going to get it solved, it perhaps doesn't quite deserve the focus it's been getting in the last couple of hours," said Michael Casey, the company's chief financial officer.

Comparable-store sales for July grew at the lowest rate the company had seen since December 2001. Executives said they expect comparable-store sales to range from 3 percent to 7 percent for the remainder of fiscal 2006 and 2007.

Despite the cold-drink issues, Seattle-based Starbucks said profits rose 16 percent.

For the 13 weeks ended July 2, Starbucks posted net earnings of $145.5 million, or 18 cents per share, up from $125.5 million, or 16 cents a share, in the same period a year earlier. Revenue for the latest quarter increased to $1.96 billion, up from $1.6 billion last year.

Excluding a one-time tax benefit of a penny per share, the company met the forecast of analysts surveyed by Thomson Financial, who predicted earnings of 17 cents per share on revenue of $1.96 billion.

Sharon Zackfia, an analyst with William Blair & Co. LLC, suggested the market was overreacting to Starbucks' comparable-store sales figures. "There wasn't really anything else you could pick at," she said. "I think the market is skittish, period, when it comes to retail stocks right now."

Rather than comparable-store sales, Starbucks Chairman Howard Schultz urged analysts to focus on the earnings increase, its plans to expand into Brazil later this calendar year, India and Russia next year, and boost new-store openings to 2,000 worldwide in fiscal 2006 -- up from 1,800 as previously forecast -- and 2,400 in fiscal 2007.

"We couldn't be more enthused and excited about what's happening internationally, which complements obviously the growth and development that we've had over the last 30 years in the U.S.," Schultz said.

The company held fast to its previous guidance for earnings of 16 to 17 cents a share for its fourth fiscal quarter and 71 to 72 cents per share for fiscal 2006. It set its fiscal 2007 earnings target at 87 cents to 89 cents.

As of July 30, Starbucks had 11,946 stores in 37 countries. It opened 559 stores in the latest quarter, 395 of them in the United States and 164 internationally.

Also on Wednesday, Starbucks said its board of directors had authorized the repurchase of up to 25 million shares of company stock. Those are on top of about 3.4 million shares that remain available from a previous repurchase authorization.

[rffrydr]

"Starbucks did not respond to calls seeking comment." That's what I get for selling calls

http://stockcharts.com/h-sc/ui?s=SBUX&p=D&b=5&g=0&id=p