Sunday, May 19, 2013

Why Starbucks Shares Will Keep Perking Up

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 (NASDAQ: SBUX  ) 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, Wash. (1985)

Market Cap

$47.2 billion

Industry

Restaurants

Trailing-12-Month Revenue

$14.0 billion

Management

Founder/Chairman/CEO Howard Schultz

CFO Troy Alstead

Return on Equity (average, past 3 years)

28.3%

Cash/Debt

$1.7 billion / $549.6 million

Dividend Yield

1.3%

Competitors

Dunkin' Brands 

McDonald's 

Tim Hortons 

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

On CAPS, 80% of the 8,353 members who have rated Starbucks believe the stock will outperform the S&P 500 going forward.   

Just yesterday, one of those Fools, nbsudha, succinctly summed up the Starbucks bull case for our community:

Starbucks has proven itself over and over again, defying all its skeptics. I believe that it is able to sustain its phenomenal track record due to its fantastic management by CEO Howard Schultz. I think that Starbucks is a great business and has very strong value. Its economic moat is very wide in its field, and I believe that this business will stay strong in the long run. This is a stock that you simply have to own.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Starbucks may not be your top choice.

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