The key point of the fundamental analysis of Starbucks
- Reckless buyback is the factor why we do not buy Starbucks.
- We are happy when Howard Schultz takes the Starbucks helmet and decides to suspend that buyback program.
- But when he said that the suspension is just a pause (Schultz wants to resume the repurchase program) We worry that this pause is just a lips service to calm the Starbucks worker.
- Revenue and earnings have surpassed the pre-COVID level. It is a good sign.
- Starbucks has a decent competitive advantage in its brand. It creates a unique user experience – also a story. Something that almost no other ‘restaurant’ could replicate. Even with its mediocre coffee.