Bliston Asset Management Backing Starbucks to Continue Providing Investors for More Future Gains


Posted May 26, 2015 by FinanceNewsLink

Starbucks Corporation (SBUX) is currently trading a fraction under its historical high. Through an aggressive global expansion program and customer incentive schemes, the worlds leading coffee house is set to reward investors for years to come.

 
The world number one coffee house Starbucks Corporation (SBUX) continues to go from strength to strength as it remains a lead provider of innovative beverages and is driven by a customer loyalty scheme in the form of technological initiatives.

Bliston Asset Management, the Hong Kong based provider of wealth management services and investment solutions has been a long time supporter of the Seattle based corporation and predicts a period of sustained performance and steady growth.

“The Starbucks story is perhaps one that is comparable to how McDonalds became so great. The company has taken what is essentially a common day beverage and marketed itself into a global superpower. We can see from its most recent financials that performance has been strong across all regions resulting in the posting of record revenues, earnings and cash flow, beating market expectations by some $30 million,” commented Bliston Asset Management’s Chief Investment Officer.

“Looking forward we fully expect the company to sustain its very impressive run of form. Firstly the brand is exposed in sixty countries with a store presence exceeding 22,000, which in the face of competition is. Secondly the company is already leagues ahead with their consumer interaction schemes, which is contributing heavily to customer retention especially throughout the Asian region where we recently saw a 12% increase in comp gains. A combined force of these two factors alone points towards a further period of growth and market domination.”

Addressing the Starbucks opportunity for investors, Bliston Asset Management’s Chief Investment Officer shared the firm’s expectations in line with its in-house analysis.

“If we consider the number for a moment we can see that the company has delivered at least 5% comps growth for each of the last 20 quarters. Whilst there is always the risk that this run will come to an end, we believe that the business model remains robust and is set to exceed management revenue expectations currently set at the 16%-18% range. This in turn will increase earnings per share to around $1.79, essentially 30% from 2014 price of $1.36.”

A magical mix of strong leadership, technological innovation and strategic expansion programs is helping Starbuck to develop a platform whereby the company is set to generate sustained growth in earnings and revenues throughout 2015 and beyond.
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Tags bliston asset management , coffee , earnings per share , innovation , starbucks
Last Updated May 26, 2015