It's Time to Double Down on Starbucks Stock
If you own shares of Starbucks (NASDAQ: SBUX) right now or are on the verge of buying them, congratulations. You're obviously a forward-looking investor capable of blocking out the present headwinds.
The company is currently in its third quarter of 2020, and it expects the COVID-19 pandemic to reduce quarterly sales by at least $3 billion. For the year, it expects to earn between $0.33 and $0.73 per share, down 82% from 2019 at the midpoint. These are some of the worst numbers the coffee company has ever released. You must have a vision of a brighter future: Why else would you presently invest in Starbucks?
It's a strong business with a long track record. Consider that over the last 30 years, comparable-store sales have grown every year except two: 2008 and 2009. It had $26.5 billion in fiscal 2019 net revenue, up 7% year over year. And it returned $12 billion to shareholders through share repurchases and dividends.
Source Fool.com
