One of my favorite stocks of all time is Starbucks traded under the ticker symbol SBUX.

Over the last year Starbucks has grown almost 80% in capital appreciation, not including the dividends that were paid as well. Compare that to the S&P 500 which has only gone up about 3% not including dividends being reinvested. Starbucks is an amazing business because it has a lot of cash on the balance sheet (as of the time of this writing, about $4.8B. Their revenue within the last year has increased about 8% however their earnings per share has increased over 54%. Starbucks is now partnering with Uber eats which will officially start in 2020. Although Uber eats is revenue is very small compared to the overall revenue of Uber, their business is rapidly growing. Uber eats is partnering with large chaine such as McDonald’s so Uber eats is having to take a cut in revenue in order to obtain large changes business. Uber makes nearly 4 times as much as Uber Eats

TThe worldwide market for food delivery takeout and drive three meals is estimated at $795 billion – – that means that Uber has only captured about 1% of that market

According to an article from table.skipped.com the overall consumer spending on dining out eclipse $2 trillion in 2017. That means that there is plenty of room for Uber eats to gain significant share of the market place which will in turn help Starbucks have more sales and ultimately have more profit.

If you have enjoyed this podcast, please leave me a 5 star rating. Also, please leave me a voice message with any questions or comments. You can also feel free to email me at benstockguyhere@gmail.com. Also, I have a YouTube channel as well. It’s called “Rad Revenue Review”. Please look it up if you’re interested in seeing different videos regarding the stock market and other investing ideas and topics.

Thanks for listening!

Ben

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