This is a nice trend isn't it ! Though stock price suffered large swings from time to time (up to 50% in some cases, as in 1999), market cap grew from a couple of hundred millions dollars to more than $20bn in just 15 years ! I don't have the exact figures, but I guess it has been a "100bagger" over this period.
Founded in the mid 80s by the one who still chairs the company, this retail chain (kind of) now manages more than 13.000 outlets worldwide.
While in New York, I would have had trouble not running into one of its units at every corner !
I love distribution concepts. Betting on a good one in its early stage is probably the best and most mechanical way to make tons of money over the long haul.
What we are looking for in a good retail concept is the following : an attractive commercial concept (as shown by throughput, conversion rates, average ticket), nice economics (gross margin, return on equity, return on assets, free cash flow, store opening costs), frugal and down-to-earth management consumer oriented (you don't usually find those kind of guys in web 2.0 companies), and a vast worldwide potential to let the model grow, and grow, and grow...
By the way, to whom retail chain belongs that nice stock price curve ? Unfortunately, it's a bit too late for me to invest in it as no 100bagger to expect over the next 20 years !
Starbucks Coffee of course
Posted by: Jeremy Fain | February 25, 2007 at 07:00 PM
Sure, too easy for you !
But a nice chain isn't it ?
Posted by: Michel de Guilhermier | February 25, 2007 at 07:11 PM