How Starbucks’ Stock Soared 7x Over Three Years

While U.S. markets saw back-to-back weeks of corrections, one major company’s stock kept climbing. Starbucks, the largest coffee retailer in the world, defied the trend—and then some.

By late January 2012, Starbucks’ stock hit an all-time high of $61.98 per share, closing at $61.67. That day marked not just another peak, but the latest in a stunning rally: up 27.5% for the year and a colossal 718% since November 2008, when shares bottomed at just $7.17. The company’s market cap surpassed $44 billion.

From Coffee Seller to Coffee Experience

Starbucks wasn’t always a global coffee empire. Founded in 1971 in Seattle’s Pike Place Market, it began as a coffee bean retailer. In 1982, Howard Schultz joined as director of retail operations and marketing. By 1987, he had acquired the company and opened the first store selling both drip coffee and espresso beverages. The 1992 NASDAQ IPO accelerated growth under Schultz’s vision.

Analysts credit Schultz for transforming Starbucks into more than a place to buy coffee—it became a “third place” between home and work. The company built its brand around the idea of coffee as an experience, not just a drink. U.S. media noted Schultz redefined how people imagine coffee.

The Fall and Rise Under Schultz

Success didn’t come without setbacks. After stepping down as CEO in 2000, Schultz watched from the sidelines as aggressive expansion and rising competition—especially from McDonald’s—led to falling profits and foot traffic. Between 2006 and early 2008, Starbucks’ share price plummeted from around $40 to below $15.

In 2008, Schultz returned as CEO. He immediately slowed U.S. store openings, closed underperforming locations, and refocused the company. These moves restored profitability and gradually rebuilt investor confidence. Despite the financial crisis, Starbucks’ stock began a steady climb after the initial dip.

By January 2011, Starbucks posted record revenue: $3.4 billion in Q4, up 16% year-on-year, driven by a 9% rise in global same-store sales, 7% more customers, and a 2% increase in average spend per visit. Quarterly profit grew 10% to $380 million. Schultz called it “the best quarter in our history.”

Global Expansion and the China Gamble

Starbucks’ global footprint expanded dramatically. Launched internationally in Japan (1996), the UK (1998), and China (January 1999, with its first store in Beijing’s China World Mall), the brand reached 55 countries and over 17,000 stores by the end of 2011.

Asia became a strategic priority. Schultz and his team aimed to make China Starbucks’ second-largest market. By 2011, the company had entered 13 new markets in China, opening roughly one store every four days. Performance in these new regions exceeded expectations. At year-end, China and Latin America each had over 500 stores.

Asia-Pacific president John Culver stated that brand resonance in China was strong. The goal was to operate 1,500 stores in mainland China by 2015. In early 2012, Starbucks also formed a 50-50 joint venture with Tata Global Beverages to enter India, with plans to open stores in Delhi and Mumbai by the end of that year, then expand nationwide.

Investor Confidence and Future Strategy

Wall Street took notice. In early February 2012, Goldman Sachs added Starbucks to its “Buy” list, predicting the company would double profits by 2015. The firm cited continued global demand and Starbucks’ innovation-driven expansion as key drivers. The coffee chain planned to open nearly 800 new stores globally in 2012, with almost 300 of those in China and the broader Asia-Pacific region.

Long-term, Starbucks aimed to build a global consumer brand across multiple channels and grow its share of the $1450 billion global coffee market through product innovation and geographic expansion.

Frequently Asked Questions

What caused Starbucks’ stock to rise 718% since 2008?

Starbucks’ stock surged from a low of $7.17 in November 2008 to a record $61.67 in January 2012—a 718% increase—driven by global expansion, improved profitability under Howard Schultz’s leadership, and strong same-store sales growth in key markets like China.

When did Starbucks enter the Chinese market?

Starbucks opened its first store in China in January 1999, located in Beijing’s China World Trade Center (China World Mall).

How did Howard Schultz save Starbucks in 2008?

Schultz returned as CEO in 2008, slowed U.S. expansion, closed poorly performing stores, and refocused on core customer experience, which helped restore sales growth and rebuild investor trust after years of declining performance.

What were Starbucks’ 2011 Q4 financial results?

In Q4 2011, Starbucks reported $3.4 billion in revenue (up 16%), with global same-store sales up 9%, traffic up 7%, and average spend per visit up 2%. Net profit rose 10% to $380 million, marking the best quarter in the company’s history at that time.

Why is India important to Starbucks’ growth strategy?

India represents a major potential coffee market. In February 2012, Starbucks formed a joint venture with Tata Global Beverages to open stores in Delhi and Mumbai, with plans for nationwide expansion, following the brand’s successful expansion model in China.

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