Starbucks Corporation (NASDAQ:SBUX) reported on Wednesday that it aims to purchase tea store chain Teavana Holdings, Inc. (NYSE:TEA) for $620M, intending to replicate the success it has had with its namesake coffee shops.
Teavana has about 300 shopping mall stores which sell loose-leaf, exotic teas. In adding up to opening stand-alone Teavana stores in the U.S and abroad, Starbucks will add tea bars that serve ready drinks in existing Teavana stores, Starbucks CEO Howard Schultz told Reuters.
Teavana Chief Executive Andy Mack is estimating 500 total Teavana stores by 2015.
The world’s biggest coffee shop operator will compensate $15.50 a share in cash for Teavana, a 54% premium to the firm’s closing price on the New York Stock Exchange on Tuesday
Moving readers toward the broader market, let’s consider percentage change in stocks prices of other stocks in the similar sector who contribute major role in the market that includes Panera Bread Co (NASDAQ:PNRA) lost -3.19%, Caribou Coffee Company, Inc. (NASDAQ:CBOU) edged down -3.37%, Flanigan’s Enterprises, Inc. (NYSE:BDL) which also decreased -1.38% and Abercrombie & Fitch Co. (NYSE:ANF) closed up 34.45%.
Starbucks Corporation (NASDAQ:SBUX) stock’s trade at beginning with a price of $50.00 and throughout the trading session climbed at a high of $50.48 other than when day-trade ended the stock finally declined -2.92% to $48.84.
The stock is going forward its 52 week low with 21.61% and lagging behind from its 52 week high price with -20.34%. SBUX last month stock price volatility remained 2.16%.
SBUX stock institutional ownership remained 75.76% while insider ownership included 0.05%. In its share capital SBUX has 760.00 billion outstanding shares among them 749.96 billion shares have been floated in market exchange.
Company’s beta coefficient included 1.19. Beta factors measures the amount of market risk associated with market trade.
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