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Starbucks Research

In: Business and Management

Submitted By xd63390n
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Investment Summary An Analysis of the Food and Beverage Industry

by

Alexander Raifeld Mark Gurfinkel Rajeev Rao Hao (Sara) Xi Shivanker Saxena

Valuation results
Campbell Soup Risk Characteristics Approach Beta Jensen's Alpha R squared Investment Performance ROE - COE ROC - WACC EVA (Millions) Capital Structure Current Debt rati o Optimal Debt Rati o Change in WACC Duration (Years) Dividend Policy Dividends (Millions) FCFE (Millions) Valuations Value/share Price/Share 259 428.0 27.45 29.5 0 -$37.0 20.09 30.25 76.70 231.0 35.6 34.4 0 128 38.5 48.7 892.4 309.5 40.5 34.7 B 0.94 0.12% 4% N/A 10.43% 106.5 23.97% 40% -0.15% 0.25 Cheesecake Factory B 0.63 26.97% 13% 7.08% 12.21% 74.46 13.17% 10% 0% 6.99 McCormick Starbucks Sysco

B 0.85 8.8% 2% 19.88% 7.20% 422.4 10.08% 30.00% -0.45% 6.09

B 0.66 34.4% 6% 9.05% 2.82% 143 11.5% 20% -0.14% 3.65

B 0.58 7.27% 16% 26.13% 15.76% 690 6.6% 40% -0.47% 7.01

Chapter

1

Corporate Governance Analysis
The purpose of this section is to understand the relationship between managers and stockholders
Managers and Stockholders
Chief Executive Officers
CEO Name Age Years at the C ompany Years as CEO CEO Compensation Salary rank within Restaurant Industry Salary Bonus Other Stock Gains Campbell Soup
Douglas Conant

Cheesecake Factory David Overton 59 30 30 (founder)

McCormick Robert J. Lawless 58 28 8

Starbucks Jim Donald 51 3 0*

Sysco Richard Schnieders 55 23 2

53 4 4

14 0.9 1.5 1.8 6.6

>50 0.5 0.6 5.4 133.9 134.5

16 1.0 1.0 2.7 5.9…...

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