Here’s why your Starbucks (SBUX) barista is all smiles these days: The popular hub of latte lovers and Frappuccino sippers is rolling. Despite the tumultuous market that has battered many consumer-facing companies, shares of Starbucks hit an all-time high last week. Over the past three years, an investment in the premium coffeehouse has come through with a return that is seven times the S&P 500’s modest gain.
The stores are buzzing again. Analysts see revenue climbing by nearly 9% to $11.6 billion for the fiscal year that ends later this week. Earnings have been growing even faster.
However, in order to appreciate the mug of pessimism that I’m about to pour out, it’s probably best to go over where Starbucks has been — and where it’s going.