STAR­BUCKS

Finweek English Edition - - INVESTMENT -

For in­vestors seek­ing in­ter­nat i onal e x po­sure, By­ron Lot­ter from as­set man­age­ment f i rm Ves­tact sug­gests look­ing at this cof­fee fran­chise. This fol­lows a re­cent trad­ing up­date for the group. Lot­ter told clients: “At 71c for the quar­ter, the com­pany ex­pects to make around $2.67 for 2014. That is up 18% from the $2.26 it made last year. The stock is far from cheap how­ever, trad­ing at $75 or 28 times this year’s ex­pected earn­ings. But as you can see it is grow­ing very fast. Ex­pected earn­ings growth this year is 18% and a fur­ther 18% is ex­pected for 2015. It is an ex­tremely prof­itable busi­ness with a great brand. Peo­ple love cof­fee and I ex­pect that to grow as more wealthy peo­ple can af­ford this pre­mium brand. But it is not just cof­fee, they have also made in­roads into tea, juices, food and pas­tries. We con­tinue to add at th­ese lev­els.”

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