The coronavirus pandemic hit the world very hard. It brought upon hard times for so many businesses that now, all of those are hoping for a recovery and working on the same. The restaurants, travel and tourism sector, hotels, etc, all had to bear the wrath of that time. Now, there is a hope that the vaccines will work out well, and soon, the pandemic will subside making the situation normalized. Although the restaurants were not completely shut down and the option of home delivery or take-away always remained, yet, the physical absence of customers and the decline in sales due to the fear of the spread of the virus affected the business badly.
Starbucks through the Year 2020
This company is a world-famous coffeehouse giant with its stores spread all over the globe. It has had a very fine growth in the recent past until the coronavirus pandemic took over and spoilt things. The company underwent losses and it was a difficult time for Starbucks. The company however managed and did not go too down. It earned better than many other companies and was still able to gain profits. The loyalty program and the online sales were the two major contributors which helped in upholding the position of the firm.
The revenue of Starbucks has come out to be $6.75 billion and the EPS on this revenue is 61 cents. The company has had a rough time in the past year but in no way, has the work stopped. New stores have been opened even during the pandemic at various locations and the company hopes for better times ahead.
If the vaccines are a success and the pandemic soon comes to an end, then the investors can look forward to better times and profits to come ahead. The pace of growth and the management of the company during that time of the pandemic is however noteworthy and signifies that the company is in no way going to go down.
- 52 Week Range: $50.02 – $107.75
- Average Volume: 5,648,832
- Market Capital: $121.22B
- Forward Dividend and Yield: 1.80 (1.77%)
Is it the Right Time to Make an Investment in Starbucks?
The company has shown its strength and it is also much better than other restaurant stocks or stocks of similar category. The safe-sided decision as of now would still be to wait for some time before investing. The investors have to be either completely sure of the investment that it would be profit bearing, then they can invest even now but if not, then it is best to observe the progress.
Pretty soon, things will be clearer because the company is fast and there are better hopes as well. There is a higher probability that the company would show positive growth only and become a buy now stock shortly. The investors only have to wait to be completely sure about the investment they make because, in the stock market, the variations are common owing to its volatility.