Boston, MA 05/23/2014 (wallstreetpr) – Starbucks Corporation (NASDAQ:SBUX), a favorite choice of myriad coffee lovers across 64 countries, which has a phenomenal market capitalization of $53.75 billion has received many an accolade over the years for its sustained and impactful marketing campaigns. It caters to precocious business acumen and keeps its customer base; partners and stockholders pleased with handsome rewards! When its competitors are apparently biting the dust, so far as market acquisition and high revenues are concerned, Starbucks have apparently showcased its plans to delve into the business of the booze, hoping to make a mark among a large chunk of populace globally, who prefer booze to coffee!
Enormous Sales, Despite Terrible Winters
On April 22, 2014, Starbucks Corporation (NASDAQ:SBUX) released its Q2 earnings. In Q2, SBUX has registered global sales that grew almost by 6% year-over-year. Net earnings shot up by 9.4%, from $0.56/share. The company garnered $3.87 billion revenues, despite bad winters.
Starbucks’ Expansion Plans
The company is on an aggressive expansion spree in Asia Pacific region and China. In Q1, SBUX added 209 stores and registered an increase in revenues by 5% in merely one quarter. Since people in Middle East and Asia have a special corner for tea, SBUX acquired Teavana for a whopping $620 million, rebranding it into ‘Tazo.’ By the end of 2015, SBUX expects to open at least 1.5K stores in China and reach out to 600 new locations across the precincts of North America.
Starbucks Eyes Booze Delivery
Starbucks Corporation (NASDAQ:SBUX) is financially capable of undertaking a rewarding alcohol business. It must have carried out sustained analysis before considering the apparent decision to open an alcoholic beverage wing! The company has plans to offer alcoholic beverages in the afternoons and evenings so that people could connect with friends, and hang out in its coffee stores for hours together. SBUX shall soon roll out Fizzio Carbonated Drinks in the stores across China, Korea and Singapore.
Concern or Content?
However, the growing concern that evolves is whether the premier coffee maker and distributor is making a strategic blunder by infusing alcoholic drinks in its menu, given a wide gamut of coffee lovers that it already caters to, who might just feel alienated if booze and coffee is sold at the same premises of Starbucks stores, in the future! Despite flocking questions and raising eyebrows, the investors seem content to welcome this move and hope for better growth of Starbucks Corporation (NASDAQ:SBUX).
