Hat tip to Starbucks (SBUX) .
It was 25 years ago today that the then coffee chain upstart went public. The stock kicked off at $17 ($0.27 a share adjusted for stock splits) and closed its first day of trading at $21.50. Since then, Starbucks has become a beast. More stores in the U.S., more stores in emerging markets, and a leadership position in digital that is the envy of most in the food business (and other industries).
Starbucks estimates it has delivered an 18,000% increase in shareholder returns since its IPO. All in all, impressive stuff.
But, the reality is that the next 25 years will likely look radically different for Starbucks for a number of reasons: Some include:
- The next generation of premium coffee chains is forming in many urban markets.
- Packaged premium coffee has taken hold in supermarkets, and offer a great way to skip the insane lines at Starbucks.
- Others in fast food are finally getting on the digital bandwagon, namely McDonald's (MCD) . Starbucks has not had much competition in mobile the past 10 years.
- Restaurant wages are on a longer term uptrend.
- The visionary that is Howard Schultz is no longer running day-to-day operations. It will be interesting to see how the next generation of Starbucks leaders handles the coffee chain's development.
Add all this up and it's likely Starbucks' shareholder returns cool dramatically over the next 25 years. Yours truly hopes he is still around to revisit this call.
Monday's call for a little extra caffeine ☕️ Rory is living up to her @gilmoregirls inspired name�� #pupachino #rorygilmore #gilmoregirls #coffeecoffecoffee #caffeinefix #starbucks ••• #goldenpuppy #goldensofinstagram #pupstagram #puppytrip #puppiesofinstagram #PuppiesForAll
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The caption reads "Well it took many years... it was a period of maybe 15 years developing. I started with many ideas, threw them away, started all over again. And eventually it evolved into what you see today at Disneyland" Walt looks so happy����✨����
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