Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, juices, and bottled water; an assortment of fresh food and snack offerings; and various food products, such as pastries, breakfast sandwiches, and lunch items, as well as beverage-making equipment and accessories.

The company also licenses its trademarks through licensed stores, and grocery and national foodservice accounts. It offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks VIA brand names. As of November 3, 2016, the company operated 25,085 stores. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

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S&P Rating: A

S&P Outlook: Stable

Moody Rating: A2

Moody Outlook: Stable

Typical Lease Characteristics

Lease Term: 10 – 15 Years  Years

Lease Type: Absolute NNN Lease 

Lease Increases: 10% Every 5 years 

Lease Extensions: 4-5 (5) Year Options

Lease Guarantor: Corporate

Positives:

  • Public Company, Credit Rated
  • Typically located in high traffic locations
  • Typically Long term leases with increases

Negatives:

  • Competitive Industry Sector
  • Susceptible to economic trends and pressures
  • Generally Low Cap Rates

Market Snapshots:

On Market Ranges:

# of Properties in set: 42

Price: $2,148,310 - $2,530,230Average: $2,387,013

PPSF: $1020 - $1230Average: $1105

Year Built: 1979 - 2018Average: 2007

CAP Rate Range: 4.69% - 5.44%Average: 5.04%

Size range: 850 sq ft - 3,925 sq ft Average: 2,227 sq ft

Last 12 Month Range:

# of Properties in set: 79

Price: $1,886,570 - $2,352,660Average: $2,219,490

PPSF: $1012 - $1265Average: $1100

Year Built: 1978 - 2018Average: 2013

CAP Rate Range: 4.24% - 5.82%Average: 5.10%

Size range: 477 sq ft - 3,925 sq ft Average: 2,050 sq ft

Starbucks Company Profile

Headquarters Information

Seattle, Washington

Founded in 1971

Company type: Public

Stock Ticker: SBUX

Sector: Services

Industry: Specialty Eateries

# of Employees: 254,000

S&P Rating: A

S&P Outlook: Stable

S&P Rating: A2

Moody Outlook: Stable

Starbucks Stock Keys

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