Starbucks Remains Resilient

January 25, 2013

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E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio for Starbucks is strong. It also blows away the debt-to-equity-ratio for Dunkin’ Brands Group (NASDAQ:DNKN). As expected, the balance sheet is in great shape.

	Debt-To-Equity	Cash	Long-Term Debt
SBUX	0.11	$2.04 Billion	$549.60 Million
DNKN	5.98	$165.64 Million	$1.88 Billion
MCD	0.96	$2.18 Billion	$0

T = Technicals on the Stock Chart Are Strong

Starbucks has outperformed Dunkin’ Brands Group and McDonald’s (NYSE:MCD) over a three-year time frame.

	1 Month	Year-To-Date	1 Year	3 Year
SBUX	2.25%	2.37%	16.91%	150.20%
DNKN	10.64%	9.70%	38.71%	1.59%
MCD	4.48%	5.76%	-2.50%	61.59%

At $55.69, Starbucks is currently trading above all its averages.

50-Day SMA	52.88
100-Day SMA	51.02
200-Day SMA	51.95

E = Earnings Have Been Steady

Earnings have improved every year since 2008. Revenue has improved every year since 2009.

	2008	2009	2010	2011	2012
Revenue ($)in billions	10.38	9.78	10.71	11.70	13.30
Diluted EPS ($)	0.43	0.52	1.24	1.62	1.79

We already know what happened this quarter. Now let’s take a look at previous quarters.

	9/2011	12/2011	3/2012	6/2012	9/2012
Revenue ($)in billions	3.03	3.44	3.20	3.30	3.36
Diluted EPS ($)	0.47	0.50	0.40	0.43	0.46

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