If you love coffee, then you’re probably aware of the Starbucks Corporation. The company is headquartered in Seattle, Washington and operates a number of coffeehouses and roastery reserves around the world. They have become a major force in the world of coffee and are one of the world’s most valuable companies.
The company has consistently raised prices without affecting demand, and this is evidence of the strength of its business. It has also invested heavily in delivery, a mobile app, and a membership program to increase customer loyalty. In FYQ2 alone, mobile orders and payments were up 20% year-over-year, and the company’s delivery business was up 30%. In addition, the company’s rewards program contributed 54% of revenue at company-owned stores.
The company’s strong global footprint and successful innovations have led to a steady increase in its quarterly dividend. Shareholders will be pleased to learn that it will increase its payout by 8.2%, to 53 cents per share. The new dividend will be effective with the December payment. Investing in Starbucks is a solid idea if you want to earn extra money.
The company’s Q3 revenue is expected to rise 9% to $8.3 billion, slightly above the consensus estimate of $8.7 billion. However, the company’s Q2 earnings per share were down 3% year-over-year, and the company has been struggling with margin compression due to inflation. In the first half of its fiscal year, it lost 200 basis points of margin. Despite this, it has been able to grow its sales globally, with cold beverages making up almost 80% of the company’s business.