What’s Next for Starbucks Corporation (SBUX)?

The brand owner of Cheerios, Green Giant, and Betty Crocker, reported lackluster fourth quarter earnings when it closed out its fiscal year in late July. Share buybacks have given shares a boost over the last several years, and the hearty 2.95% dividend yield has appealed to shareholders.

But growth investors are likely to be disappointed. Emerging market sales are showing signs of decay, and revenue generated by its U.S. retail division, accounts for 60% of its top line. These divisions eked out a mere 1% gain last year.

Starbucks’ future is percolating

An improving economy, growing consumer confidence, increased international exposure, lower commodity prices, loyal customers, new patrons, and fresh product offerings will keep Starbucks Corporation (NASDAQ:SBUX)’ shares brewing.

And if coffee isn’t your cup of tea, well there’s tea. Starbucks Corporation (NASDAQ:SBUX) acquired Teavana in 2012 and plans to debut tea bars shortly. Starbucks is also testing alcohol sales in select locations.

The company increased its guidance for the third quarter from $0.57 to $0.59. Additionally, management boosted guidance for the full year from $2.19 to $2.22 per share. Shares have nearly doubled over the last 12 months and the company pays a quarterly dividend of $0.21 per share. With all this positive mojo, perhaps its time you took a closer a look at Starbucks Corporation (NASDAQ:SBUX) for yourself.

The article What’s Next for Starbucks? originally appeared on Fool.com and is written by Diane Alter.

Diane Alter has no position in any stocks mentioned. The Motley Fool recommends Starbucks. The Motley Fool owns shares of Starbucks. Diane is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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