Tag Archives: starbucks

Starbucks: Big bucks in China

If you hold Starbucks stock, I suggest hold on to your shares. With the margins they have in China and the huge potential to increase the store density this is a 1 way ticket to print money. While prices are 10-15% higher than Hong Kong and London, the labor and real estate costs are almost half.  Even with the import duty on coffee beans the margins are clearly VENTI size. The table below says it all. Should we drink to that?

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