Before deciding on what kind of investment that one would like to commit their money into, it’s always advisable to investigate and know the facts that would make one assured of some returns. The investigation would of course mean to have a clear understanding of how the company one is planning to invest in has been doing in the past and to try and evaluate the possible future trends and know if the decision to invest is sound. For that reason, the report below looks at the opportunity of investing in the Starbucks Company. A clear description of the company and how it has been able to emerge as the worlds’ largest coffee house company (Gould, 2007).
Starbucks Corporation is a well known international coffee and coffeehouse chain which is based in Seattle, Washington. It has grown to be the largest coffeehouse Company in the whole world with more than 17,800 stores distributed in more than 49 countries and about 11,000 of them based locally in United States. It is involved in selling drip brewed coffee, espresso drinks, hot and cold drinks, salads, coffee beans, Panini as well as hot and cold sandwiches. It has an entertainment and music division which is mostly concerned with the marketing of books, films and music. The company has got lots of its products which are season depending on the locality of a store. The company has seen a lot of growth from the years it was formed and became the local coffee bean roaster as well as its retailer. There has been a major rate on the way the stores are opened both locally and abroad. (Philip Kotler,Hermawan Kartajaya, 2004)
There are various reasons why Starbucks is a good investment idea that one can get. It’s a company which is traded in the NASDAQ as common stock and its symbol is SBUX. There is a difference in trading in the NASDAQ and trading in the New York stock exchange. Whereas in the New York stock exchange where traders carry their buying and selling on the floor where the traders get to meet each other. The difference in trading in the NASDAQ is that, trading doesn’t need a physical traders to get to the floor but computers that communicate with each other and deals take place just like that. (Michelli, 2004) This means that, if one wants to invest in the Starbucks, they would need to contact their stockbroker who would look up to the Company’s symbol which would be used to invest your money through the market dealer. Another advantage of trading in the NASDAQ is the fact that one can be able to get the stock quoting services that enables a new investor as well as an old one know how their stock is performing.
One of the things that assure an investor of good earnings in the company is the high franchise value which leads to some excellent financial results. This is to mean that the company enjoys good consumer goodwill. This can be affirmed by a result from the revenues earned in 1997 which were $975,389,000 to amazing results in 2001 of $2,648,980,000. This should be a reason an investor would rely on for assurance of better outcomes. Another major thing that makes Starbuck future look even brighter is the fact that they have drawn more focus to retail sales.
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