NEW YORK ( TheStreet) -- Some of history's most important agreements - major and minor, involving real disputes and amiable "win-win" situations -- have come over a simple cup of coffee. Just imagine the wars averted, the marriages that have been proposed over a $5 beverage.
I have no shame in admitting I am a huge indulger of coffee from Starbucks -- particularly its Caramel Frappuccino. It is bold but yet very easy to drink. Not only does the caramel lend a distinct buttery sweetness, but the fluffy swirl of whipped cream adds just the right touch of decadence. But I digress...The concern on the minds of investors these days suggests that not only is the company's coffee expensive, but so is its stock price. Normally, I would agree by virtue of its price-to-earnings ratio of 36. That is almost double McDonald's (MCD) P/E, but noticeably less that Dunkin's (DNKN). But given the company's earnings results on Thursday, it is evident that, for Starbucks, not only are these valuation metrics inconsequential, but the stock may yet be cheaper than investors realize and just might deserve " Chipotle-esque" (CMG - Get Report) consideration.