Starbucks, the profit king of coffee shops, reported a 6% increase in same-store sales and a 9% one-day rise in its share price.

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The magic of Starbucks share price

Let's take a look at the chart of Starbucks (stock code: SBUX) over the past few years. It can be found that it is almost a high-level process, especially the public financial report after four sets, which has soared by about 9% at one stroke.

At present, the stock price is close to $100, and the reason why the stock price is so passionate is also due to the excellent financial results.

Starbucks reported impressive results for the fiscal year to the end of June, with adjusted EPS rising 26 per cent to 78 cents a year and revenue rising 8 per cent to $6.8 billion, while global same-store sales rose 6 per cent, the biggest increase in three years, including a 7 per cent jump in US same-store sales.

Starbucks revised its full-year adjusted EPS per share from $2.75 to $2.79 to $2.80 to $2.82.

Sales in all regions have been boosted by innovative drinks, and sales have risen in the most mediocre afternoon session for the first time in nearly three years, boosted by new drinks such as nitrogen-cold coffee, the chief executive said.

The picture on ▲ shows the monthly chart of the history of Starbucks.

In addition, the delivery service with UberEats will be extended to all parts of the United States next year, which is expected to further boost afternoon sales.

Starbucks' better-than-expected results also reflect that the new CEO's strategy has polished the company's brand in the face of rapidly rising small coffee chains. Focusing its operations on the two major markets of the United States and China, Starbucks in China increased its sales net by 16% last quarter, bringing the number of global strongholds to more than 30,000.

It also plans to "continue to reduce the number of outlets in non-key markets", and it is expected that the number of additional stores in Europe this year will be reduced from 400 to 300.

In addition, it continues to invest in new technology and earlier bought a stake in Brightloom, an unmanned restaurant, hoping to increase digital loyalty and enhance payment and distribution systems. In the future, it will expand its product lineup and launch new drinks that cater to the preferences of young people.

It's just a cup of coffee, how to make consumers loyal?

In the past, I introduced this company in May 2015. buying Starbucks coffee allows you to earn a down payment on buying a house! Starbucks is not just selling coffee, but if investors have observed it, what they have been selling is an "experience". Starbucks wants to create a relaxing intermediate station between consumers at home and the company, and this space is very comfortable and relaxed, and more importantly, it has held a "stock split" program at the right time!

Starbucks split the stock on April 9, 2015. at that time, one share was changed into two shares, so the stock price seen now is actually the result of being cut in half.

We all know that good companies in the United States often make this move in order to allow more investors to participate in the growth of the company's stock, so that the stock price can be effectively reduced, and the number of shares of the original investors will increase.

When the stock market is long, it's like winning a small lottery, because if the stock price goes back to its original position, your assets will double.

In the case of Starbucks, it has doubled in just five years, and the annual salary is about 14.5% according to the rule of 72.

This is a terrible compound interest effect.

Comparison of ▲ Starbucks and SPY in the past five years.

The US remains Starbucks' main battleground, with the highest profits, which will not change overnight, but in the long run, no single market is more important to Starbucks than the Chinese market.

The last time we heard about Starbucks China, the media and investors were worried about being confronted by strong competitors in China, and such fierce competition will continue this season. Many companies are coveting Starbucks' share of the Chinese coffee market.

Last quarter's data showed that Starbucks' revenue in China and the Asia-Pacific region was $1.289 billion, up 8.7% over the same period, and same-store sales were 3%. But this season's performance was a big explosion, with global same-store sales up 6%, the biggest increase in three years. So future readers should remember that instead of drinking Starbucks, it is better to invest in Starbucks, which will be of positive help to wealth.

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