SADIF Analytics Assigns Positive Long-Term Outlook Rating to Starbucks Corporation

Released on: October 13, 2008, 12:27 pm

Press Release Author: SADIF-Investment Analytics S.A.

Industry: Financial

Press Release Summary: SADIF-Investment Analytics SA has applied its StockMarks(tm)
stock-rating system to Starbucks Corporation and produced a research report, rating
the company's attractiveness to long-term investors.


Press Release Body: Mira, Portugal - October 13, 2008 - SADIF Investment Analytics
SA, today announced the release of a new equity research report covering Starbucks
Corporation (SBUX). The report utilizes SADIF's powerful StockMarks(tm) stock rating
system and is required reading for any current or potential Starbucks Corporation
investor.

Report Summary: US coffee shop chain Starbucks has suffered a decline in its share
price of more than seventy percent since mid-November 2007. Apart from closing more
than 600 stores, investors fear that a general tightening of consumer budgets will
negatively impact earnings growth over the coming years. The company's struggling US
operations have had a significant negative effect on earnings. During the quarter
ended June 29, revenue from US operations rose six percent, while operating income
fell to a loss of USD 21.6M compared to operating income of USD 245.2M in the same
period a year earlier. US stores account for seventy-six percent of the company's
consolidated revenues. However, with the exception of Canada, the UK and Australia
Starbucks's international operations continue to grow rapidly. Total net revenue
from international stores grew by twenty-four percent compared to the same period a
year earlier, while operating income rose by more than nine percent. An important
question to ask is whether Starbucks's underlying long-term fundamentals justify the
steep decline in the company's share price. We can examine this issue through the
use of the StockMarks framework. Starbucks currently has an overall long-term
investment-attractiveness rating (Total StockMark or SMT) of 75, placing Starbucks
above the average of US-listed companies. This rating ranks Starbucks second when
compared to nine of its closest peers, selected on the basis of similarity of
business and market positioning factors such as size.

The complete report breaks down the Total StockMark into its three components -
Business, Management and Price, performing a thorough analysis of Starbucks
Corporation for long-term investors.

A summary of the StockMarks(tm) ratings for Starbucks Corporation is available here:
http://sadifanalytics.com/stockmarks/company.php?ticker=SBUX&cod_country=125

The report has been distributed to Reuters, and forwarded to Yahoo Finance and
FT.com. It is available under 'Analyst Reports' from these websites or directly from
SADIF-Investment Analytics SA at
http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_article=155&cod_country=125


About SADIF-Investment Analytics SA
SADIF-Investment Analytics SA is an independent investment research company covering
sixteen different markets and over 12,000 companies. Our StockMarks(tm) system is based
on proven investment principles and is designed to drive long-term shareholder
returns.


Web Site: http://www.sadifanalytics.com

Contact Details: Company: SADIF-Investment Analytics SA
Address: AIBAP,
Rua do Matadouro,
3070-436 Mira, Portugal
Phone Number: (+351) 231849038
Website: www.sadifanalytics.com

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