Hello Surgevesters,
We're excited to share some great news about our investment in Starbucks (SBUX). The coffee giant recently released its fantastic earnings report, causing the stock to surge up by an impressive 9.48% in just one day. This is a testament to the strength and potential of our investment in Starbucks.
To provide some context, our average cost basis for Starbucks stands at $93.72. We acquired a batch of Starbucks shares at $95.23 on August 23, 2023, and then another batch at $89.54 on October 3, 2023. This approach is part of our strategy, where we consider buying more shares of companies if the stock drops by around 5%, though it's important to note that this rule doesn't apply universally and is determined on a case-by-case basis.
Starbucks' recent earnings report exceeded expectations and showcased strong performance across various key metrics. The company reported an 11.4% year-over-year increase in revenue for the three months ending October 1, totaling $9.37 billion. Additionally, adjusted earnings per share (EPS) rose by an impressive 39% compared to the same period last year, reaching $1.06, surpassing analyst predictions.
Following this exceptional performance, Starbucks shares experienced a significant surge, closing at $100 apiece, marking an approximate 10% increase. This is a clear indication of investor confidence in Starbucks' ability to meet its long-term targets.
The company's strong quarter highlights the power of its brand, driving robust traffic and sales growth even in the face of economic uncertainties. Starbucks' management has outlined a credible plan to progressively expand margins in the coming years, including a $3 billion savings program expected to be unlocked through improvements in the supply chain.
In conclusion, Starbucks' recent success story reinforces our confidence in the stock. We believe that there are more gains in the stock's future, making it an attractive investment opportunity. As such, we reiterate our positive outlook.
The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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