Starbucks (NASDAQ:SBUX) stock has soared more than 40% in the past 12 months, handily outperforming the S&P 500's 8% gain. But after that big rally, investors might wonder whether it's time to unload some shares. To decide, let's do a basic SWOT (strengths, weaknesses, opportunities, and threats) analysis of Starbucks' business.
Strengths
Starbucks has a solid record of top- and bottom-line growth. From fiscal 2010 to 2014, the java house's annual revenue rose 53% and earnings per share more than doubled. The company expects revenue to rise 16% to 18% this year, compared to 11% top-line growth in 2014. Starbucks recently took full control of Starbucks Japan, which should boost its top line this year with over $1 billion in incremental revenue.