SBUX: StarBucks International Plans to Enter Russia and India by End of 2007

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On May 4th, Starbucks 2nd quarter profits rose 18%, and same-store sales rose a niche 4% over the same period from last year. Starbucks continues to churn profits, and looks like a good long-term play because of its robust international growth initiatives.

International revenue grew 30% to $387 million from last quarter, but what's most impressive is the announcement of Starbucks Coffee stores future openings in Russia and India by the end of 2007. Last fiscal quarter, Starbucks (SBUX) open stores in Brazil, Egypt, and Romania to add more density to their international revenue pool.

Long on SBUX

I was going to buy SBUX back in late November 2006, but the bulls got hold of the stock before I had a chance. Now, shares are hovering near the 52-week low of $28.72.

Looking at the balance sheet, SBUX long-term debt is well-under control, and the company has a wide-moat. I would compare the Starbucks name to companies like Google, Wal-mart, and McDonalds, all forerunners in each of their industries.

When you think of coffee, which corporation comes to mind?

Analysts project earnings to grow at 21% annually. Do you think Starbucks can maintain this type of growth? Keep in mind that Starbucks has yet to fully monetize the rest of the non-western world.

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