Monday, May 19, 2008

Business Week's No. 16 - Starbucks

No. 16: Starbucks

Industry: Consumer Discretionary
Sales: $9.8 billion
Net Income: $675.8 million

A weaker Starbucks (SBUX) is still a pretty good business. The company's shares are in a nosedive, falling 40% in the past 12 months, due to a more modest growth trajectory and slowing same-store sales. Yet the ubiquitous Seattle-based coffee chain still has enviable fundamentals: Over the past three years it has rung up average annual sales growth of 20.8%. Analysts look for 11.5% earnings growth in 2008. Howard Schultz, who retook the chief executive reins in January, is on a crusade to restore the chain's image. His moves: streamlining management, closing underperforming stores, and reeducating baristas.

No comments: