Part 3/6:
Next on the radar was Starbucks (SBUX), discussed by Matt Argersinger. With the stock creeping closer to the $50 mark, Argersinger pointed out that investors looking to buy in at that price would be paying a forward earnings multiple of about 25, which he considers reasonable given Starbucks’ growth trajectory, especially in international markets like China.
Argersinger emphasized the importance of revenue per store metrics, particularly in the Chinese market. Starbucks aims to double its store count from around 2,000 stores by 2020. He noted that while store growth is crucial, maintaining or improving revenue per store would be essential to avoid compromising overall sales performance.