From 1993 through 2007, annual revenue growth atStarbucks (
) never fell below 20%.
In the past five years, sales growth has never exceeded
No question that Starbucks is on a slower track.
However, it isn't clear that this represents an aging factor
for the company incorporated in 1985 or a pause that eventually
leads to a new burst of growth.
Starbucks' current three-year growth rates are 19% for
earnings and 12% for revenue.
The Street, though, expects EPS to rise 22% in fiscal 2013
ending in September and 20% in fiscal 2014. Revenue growth is
estimated at 12% for both years.
Growth in international sales and channel-development sales
could be pivotal to stepping up the pace.
In fiscal 2012 ended in September, sales in the Asia-Pacific
region grew 31%, including 15% revenue growth in same-store
During the year, 154 stores were added in the region.
Sales growth in other regions was in the 9% to 10% area --
good, but not great.
Meanwhile, channel-development sales leapt 50%. This includes
items such as K-Cup portion packs and packaged coffee.
With the fast growth in channel sales and Asia, Starbucks
doesn't look like it's ready for the stock market's version of
golf's senior tour.
The good news for income investors is that Starbucks holds
potential for price appreciation and dividend growth. The
annualized dividend yield is 1.4%.
Starbucks wrapped up acquisition of the Teavana tea product
retail chain in late December.
In the April conference call, CEO Howard Schultz said, "We now
intend to do for tea what we have done for coffee."
If Schultz is right, Starbucks could have some strong days