Starbucks is a worldwide acclaimed coffee giant and is currently in the process of recovering itself from the losses that it had to suffer due to the ongoing coronavirus pandemic. Without a doubt, at one point in time, the coronavirus pandemic had brought the world to a standstill. This majorly affected so many sectors and the businesses that exist under them. Now, after the reopening of almost everything once again, these companies are trying to get back on their track, recover their losses quickly, and become profitable once again.
The food industry had to withstand the imposition of the lockdowns and curfews wherein for some time, these food and beverage giants stopped completely. Even after these have got reopened, the fear of the virus has not got over yet and that is why the sales are still less.
Analyzing the stock of Starbucks Corporation (NASDAQ: SBUX) statistically:
- 52 Week Range: $50.02 – $106.09
- Average Volume: 6,541,836
- Market Capital: $122.03B
- Forward Dividend and Yield: 80 (1.76%)
Starbucks Stock and the Losses
The year 2020, as mentioned above, has thoroughly been a year of losses for the first half at least and after that, the year of recovery of the losses incurred in the first half. Starbucks’ business also stopped when the lockdowns were imposed and now the recovery process is going on. The company says that they are recovering quite quickly and the recovery is faster than it was expected to be. The earnings for the fourth quarter have come out to be higher than what has analyzed and the loss also, lesser than it was expected to come.
Therefore, the company is coping with its losses quickly and quite efficiently. This is good for the company and its stock because if the company’s recovery process progresses in a similar fashion and finishes soon, then the company would head towards profit and profit is the demand of every investor.
Starbucks Stock: Buy Now or Not?
Starbucks is recovering well and there are chances that in the next year it will become a profitable stock for its investors. As of the present situation, it is not the best stock for putting money on. The reason for this is that the investors must observe the stock first and see its growth and then think about investing. Currently, the company would not be able to provide any profits to its investors because it is concentrating on covering up the losses.
The future of the coronavirus pandemic is also somewhat uncertain and that is why, how things are going to finally turn out, no one can be sure about it. If we compare, then definitely Starbucks emerges as a better stock out of some, and also some stocks beat over Starbucks in the same case. Hence, the investors can wait for some time and then invest in the stock of Starbucks after watching its progress if it remains consistent throughout.