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Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE:SPY) total return over the last 12 months is 42.1%. But there is no question some big-name stocks performed better than others along the way.
Starbucks’ Run: One company that has been a solid investment in the last year has been coffee giant Starbucks Corporation (NASDAQ:SBUX).
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The restaurant industry was hit hard by the COVID-19 pandemic in 2020. Fortunately for Starbucks investors, the company was relatively well-positioned to weather the storm.
The pandemic negatively impacted higher-end fine dining and casual dining restaurants more than quick-service restaurants. Starbucks also had a head start on competitors with its digital sales infrastructure and its drive-thru services.
Still, in 2019 Starbucks reported $2.92 in EPS on $26.5 billion in revenue. In 2020, those numbers dropped to 79 cents in EPS on $23.5 billion in revenue.
At the beginning of 2020, Starbucks shares were trading at around $88. By the beginning of March, the stock was down to $77.92 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
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Starbucks bottomed at $50.02 during the pandemic-driven March sell-off. Fortunately for Starbucks investors, the dip did not last long.
See also: How to Buy Starbucks Stock
By December, Starbucks shares were back at new all-time highs above $100, and the stock got as high as $119.98 in April 2021 prior to an extended consolidation period. Starbucks has since drifted back down to around $111. Traders may be taking profits in the stock following its rally off of 2020 lows. Or they may simply see the company’s potential reopening rebound as fully priced into shares at a forward PE above 30.
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Starbucks In 2021, Beyond: In the second quarter, Starbucks reported 9% same-store sales growth in the U.S. and 93% sales growth in China, the company’s two largest global markets. In addition, the company reported an 18% jump in its U.S. active reward membership numbers in the quarter, suggesting Starbucks is still rapidly building its loyal customer base.
Starbucks investors who bought one year ago and held on have generated a decent return on their investment. In fact, $1,000 in Starbucks stock bought on May 21, 2020, would be worth about $1,460 today.
Looking ahead, analysts are expecting more upside for Starbucks in the next 12 months. The average price target among the 27 analysts covering the stock is $125, suggesting 12.8% upside from current levels.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.