|
Apr 04
|
Starbucks Future Revenue & ProfitsForecast Comments Off
|
To know where a company stock is heading you need to look at future sales and profits. If the future revenues and profits will go up the stock will follow. One way companies boost sales and profits is by introduction of new products.
One company introducing new products is Starbucks, the coffee store power house. Speaking during the Shareholders annual general meeting, the CEO told shareholders what the company is brewing.
“Starbucks is firing on all cylinders,” CEO Howard Schultz told 2,000 shareholders. “We are now creating lots of Starbucks products to live outside of our stores.”
The move comes at a time the company is barreling into the multibillion-dollar consumer product goods segment. Starbucks executives say sales from this emerging side of the business will someday match sales from its retail stores.
According to annual reports, in 2011 Starbucks total sales was $11 Billion that brought in profits of $ 1.2 billion. If the company can double it sales to $22 Billion you can predict the profits will also rise. At the moment, Starbucks profit margins are at on average around 11%. By that estimate you can predict if revenues hit future target the profits will more than double. Some of the products they are introducing such as energy drinks have high profit margin.