It was 25 years ago today that the then coffee chain upstart went public. The stock kicked off at $17 ($0.27 a share adjusted for stock splits) and closed its first day of trading at $21.50. Since then, Starbucks has become a beast. More stores in the U.S., more stores in emerging markets, and a leadership position in digital that is the envy of most in the food business (and other industries).
Starbucks estimates it has delivered an 18,000% increase in shareholder returns since its IPO. All in all, impressive stuff.
But, the reality is that the next 25 years will likely look radically different for Starbucks for a number of reasons: Some include:
The next generation of premium coffee chains is forming in many urban markets.
Packaged premium coffee has taken hold in supermarkets, and offer a great way to skip the insane lines at Starbucks.
Others in fast food are finally getting on the digital bandwagon, namely McDonald's . Starbucks has not had much competition in mobile the past 10 years.
Restaurant wages are on a longer term uptrend.
The visionary that is Howard Schultz is no longer running day-to-day operations. It will be interesting to see how the next generation of Starbucks leaders handles the coffee chain's development.
Add all this up and it's likely Starbucks' shareholder returns cool dramatically over the next 25 years. Yours truly hopes he is still around to revisit this call.
What's Hot On TheStreet
Unusual to hear these words: Under Armour's (UAA) - Get Report founder Kevin Plank has never been one to sound weak in a public setting. Plank is known for his motivational speeches to employees and desire to crush all competition. So, it was odd to hear Plank say rival Nike (NKE) - Get Report "isn't playing fair" on the Today Show on Sunday -- it sounded like a CEO who after several below-plan quarters is finally realizing how challenging it will be to dethrone Nike.
Hat tip to Ford: A noted supporter of recycling, auto legend Henry Ford would be proud to know his spirit of conservation is still alive and well in the company that bears his name.
And in fact, as TheStreet learned on a recent trip to Ford's (F) - Get Report Dearborn, MI. headquarters, the founder's recycling efforts have been taken to a whole other level. Within Ford's Plastics and Materials Sustainability Research Department, which is tasked with finding ways to create auto parts from things found in the Earth such as soybeans and agave plants, senior technical leader Deborah Mielewski showed off a new coin tray made from shredded cash.
It took about $400 of cash to make the coin tray, said Mielewski.
Shout out to the 1990s: It may be time to cash in those Tesla (TSLA) - Get Report stock gains and go out and buy one of these new classic cars, TheStreet reports. There are several models from 1992, including the early version of the Dodge Viper, that are starting to take off in value.
Nestle rips to a high: Shares of chocolate maker Nestle touched an all-time high Monday after activist investor Third Point, led by Dan Loeb, revealed it had built a stake in the group and pressed for asset sales and increased buybacks. The stake is worth more than $3.5 billion, making Third Point one of Nestle's top 10 shareholders. For Loeb, this is one of his boldest bets yet as he tries to shake up the staid consumer packaged goods giant.
This historic Disney map pulls in the big bucks: An original map of the first Disneyland (DIS) - Get Report park snagged $708,000 at an auction in California, the BBC reports. The 1953 drawing was used by founder Walt Disney to secure funding, after his own studio refused to fund the site, points out the BBC.
Visit here for the latest business headlines.
(This article originally appeared on Real Money, our premium site for active traders. Click here to get great columns like this from Brian Sozzi, Jim Cramer and other writers even earlier in the trading day.)
Employees of TheStreet are restricted from trading individual securities.
Action Alerts PLUS, which Cramer manages as a charitable trust, is long SBUX.