Will Buying Stock in Starbucks Give You a Nice Buzz?

E = Equity to Debt Ratio is Strong

The debt-to-equity ratio for Starbucks is strong. The same can be said for the balance sheet. Let’s see how competitors McDonald’s (NYSE:MCD) and Dunkin Brands (NASDAQ:DNKN) stack up in these areas.  

Debt-To-Equity

Cash

Long-Term Debt

SBUX

.11

$2.04 Billion

$550 Million

MCD

.96

$2.18 Billion

$13.26 Billion

DNKN

5.98

$166 Million

$1.88 Billion

 

T = Technicals on the Stock Chart Are Strong

Starbucks has outperformed McDonald’s and Dunkin Brands over the past three years.

1 Month

Year-To-Date

1 Year

3 Year

SBUX

1.19%

12.99%

18.39%

147.7%

MCD

.61%

-10.91%

-6.60%

54.40%

DNKN

-.06%

26.99%

28.17%

-1.67%

 

At $51.24, Starbucks is currently trading slightly higher than its 50-day SMA of $49.24. It’s trading slightly higher than its 100-day SMA of $49.16. And it’s trading very close to its 200-day SMA of $51.60.

 E = Earnings and Revenue Are Steady

Starbucks isn’t growing by leaps and bounds, but it’s still growing, which can’t be said for many companies in today’s world.

2008

2009

2010

2011

2012

Revenue ($)in billions

10.38

9.78

10.71

11.70

13.30

Diluted EPS ($)

.43

.52

1.24

1.62

1.79

 

Quarterly earnings and revenue have been sporadic, but not disappointing.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

3.03

3.43

3.20

3.30

3.36

Diluted EPS ($)

.47

.50

.40

.43

.46

 (go to the next page for my conclusion)…