Boston, MA 04/15/2014 (wallstreetpr) – Starbucks Corporation (NASDAQ:SBUX) is already a giant in the coffee chain business. In any case, the company recently launched a new iPhone app to improve its mobile transaction platform, and it boasts as the retailer with the world’s largest mobile payment. The company makes more than 14 percent of its U.S. transaction through mobile. If Starbucks is already a giant, the company wants to be a bigger giant.
The company seeks to double its market cap, which stands around $52 billion, to $100 billion as it expands its operations into the tea industry.
Starbucks has had a prolific growth. It had a market cap of just $5 billion in 2008, and in nearly six years the market cap is about $52 billion. During the six-year timeframe shares jumped more than 948 percent. The management believes that the company has not yet completed its run.
Tea industry
The global tea industry has annual worth of $90 billion. Starbucks Corporation (NASDAQ:SBUX) believes it can successfully tap into this industry and improve revenue and cash flow position. It acquired Teavana in 2012 and earlier this year it was able to launch tea bars in some U.S. cities. The company plans to open about 20 more tea stores by the end of this year. Although that will be a small number given the company’s network of coffee stores, it shows that the company is taking calculated steps into the tea industry so that it does not burn it fingers.
Global expansion
As the U.S. market becomes saturated, Starbucks Corporation (NASDAQ:SBUX) is turning to the global markets to improve revenue. The company is particularly keen on expanding into emerging markets where huge opportunities and growth potential exist.
Coffee, tea and profits
Starbucks Corporation (NASDAQ:SBUX) not only provides coffee and tea, but the company is also known for its generous return of value to shareholders. The company observes average annual dividend growth of 32 percent. As the company increases its cash flow position, analysts expect higher dividends in the future.
