The success of Starbucks (NASDAQ: SBUX) since it went public in 1992 has delivered outsized returns and likely made some small investors millionaires. Investors need to evaluate such challenges before considering a position in Starbucks stock. Many investors probably sighed with relief in March when Howard Schultz returned as Starbucks' interim CEO.
Dutch Bros (NYSE: BROS) and Starbucks (NASDAQ: SBUX) have a lot in common -- both started in the Pacific Northwest and Starbucks has spread across the world, while Dutch Bros, which started 21 years later, is beginning to spread across the United States. There are some key differences as well -- Dutch Bros locations are primarily drive-thrus, whereas Starbucks has embraced becoming the '"third place" outside of home and the office where customers can come to drink coffee, work, and socialize. Furthermore, it seems unlikely that we will see a drink with a name like the OG Gummybear or the Vampire Slayer on Starbucks' menu anytime soon.
Investors have been thrilled with Starbucks (NASDAQ: SBUX) over the past 10 years -- a period that has seen its shares gain 350% versus about 200% for the S&P 500. Starbucks recently announced a record quarterly revenue of $8.2 billion, but there's more than meets the eye. The company has made a big bet on China over the years, growing its store count to 5,761 locations, or about 16.5% of its total portfolio.