Stock Update: Starbucks Corporation (NASDAQ:SBUX) – Expanding Operations, New Agreements Fuels Steady Growth – Company Executes Master Franchise Agreement for State of Nevada

Starbucks Corporation (NASDAQ:SBUX) [PR Newswire] – Market updates for leading consumer goods companies and up and coming quick service restaurant continues steady growth with expansion in Nevada: GRILLiT, Inc. (GRLT), Starbucks Corporation (SBUX), Whole Foods Market, Inc. (WFM) and Chipotle Mexican Grill, Inc. (CMG). GRILLiT, Inc. (OTC Pink: GRLT) today announced that it has completed an agreement effective as of April 1, 2014 for the sale of GRILLiT master franchise rights in the State of Nevada. The rights were obtained for a total cash consideration of $75,000, which the Company will book to its revenue in the second quarter of this year, plus an ongoing 4% royalty commitment on all gross revenues, and a $12,500 up front fee for each franchised location established in these territories. As with the States of Texas and Arizona announced on March 31, the master franchisee is operated by Texas Expansion Wing Group, LLC, an experienced restaurant area developer and franchise sales organization. The principals of Texas Expansion Wing Group have over 26 years experience in the retail and food industry, both as operators and owners. Their experience ranges from the sale of over 100 franchises for QSR, the opening of over 90 restaurants in Austin, San Antonio, Corpus Christi, Laredo, Brownsville, Harlingen, and McAllen, Texas, and owning and operating YUM brands in Mexico. Their most recent projects include acting as area developers for Hurricane Grill and Wings, one of the fastest growing casual dining concepts in the country, and Dazbog Coffee, which franchises the operation of specialty coffee stores.
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Starbucks Corporation (SBUX), with a current market cap of $53.77B, started the session at $70.64.
 
Today’s price range has been between $70.50 and $71.33 per share with a one year range of $57.18 to $82.50.
 
SBUX shares are currently priced at 26.48x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 22.62x earnings multiple for the same period.
 
And for dividend hunters, the company pays shareholders $1.04 per share annually in dividends, yielding 1.50%.
 
According to a consensus of 27 analysts, the earnings estimate of $0.56 per share would be $0.05 better than the year-ago quarter and a $0.00 sequential decrease. The full-year EPS estimate is $2.66, which would be a $0.40 better than last year.
 
The quarterly earnings estimate is predicated on a consensus revenue forecast of $3.95 Billion. If reported, that would be a 10.96% increase over the year-ago quarter.
 
More recently, RBC Capital Mkts Initiated SBUX at Outperform (Nov 8, 2013). Previously, Pacific Crest Initiated SBUX at to Outperform.
 
The average price target for SBUX shares by the analysts covering it is $88.21, which is 24.87% above where the stock opened.
 
Summary (NASDAQ:SBUX) :  Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single serve products, and juices and bottled water. The company’s stores also provide fresh food offerings; ready-to-drink beverages; and various food products, including pastries, and breakfast sandwiches and lunch items, as well as beverage-making equipment and accessories. In addition, it licenses the rights to produce and distribute Starbucks branded products to The North American Coffee Partnership with the Pepsi-Cola Company, as well as licenses its trademarks through licensed stores, grocery, and national foodservice accounts. The company offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange, and Verismo brand names. As of September 29, 2013, it operated approximately 10,194 company-operated stores and approximately 9,573 licensed stores. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington.
 
Tag Helper ~ Stock Code: SBUX | Common Company name: Starbucks | Full Company name: Starbucks Corporation (NASDAQ:SBUX) .

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