Starbucks Corp
SBUX: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
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$24.00 | Pztf | Rbgqqgvym |
Starbucks' Pricing Power Shines Amid Difficult Backdrop but Challenging Restaurant Environment Looms
Business Strategy and Outlook
Starbucks is the largest specialty coffee chain in the world, generating $32 billion in sales during fiscal 2022. The firm’s attention to premium-quality coffee distinguishes it from chained competitors, alleviating pressure from quick-service peers and at-home consumption while underpinning substantially higher pricing for what has historically been a commoditized product. This positioning looks increasingly important to us moving forward, as both vending and single-serve coffee machines continue to improve at the lower end of the market.