Starbucks Card Balances

[dougules]

All I can say is wow. 

http://www.marketwatch.com/story/starbucks-has-more-customer-money-on-cards-than-many-banks-have-in-deposits-2016-06-09

[protostache]

Outstanding. They probably paid ~2% one time to gather that cash due to credit card fees, which is far below what they'd pay for a bond issue. In addition, while the amount has to be counted as unearned income for accounting purposes, I believe they can use a portion of that cash for whatever they want as long as they can redeem the cards on demand.

Looks like their last bond issue was $500m of 10 year callable bonds last month at 2.45%.

[dougules]

Outstanding. They probably paid ~2% one time to gather that cash due to credit card fees, which is far below what they'd pay for a bond issue. In addition, while the amount has to be counted as unearned income for accounting purposes, I believe they can use a portion of that cash for whatever they want as long as they can redeem the cards on demand.

Looks like their last bond issue was $500m of 10 year callable bonds last month at 2.45%.

Well, yeah, it's definitely good for Starbucks shareholders (including most of the folks here with index funds), but I was more commenting on how much cash people are throwing at expensive coffee. 

[protostache]

Outstanding. They probably paid ~2% one time to gather that cash due to credit card fees, which is far below what they'd pay for a bond issue. In addition, while the amount has to be counted as unearned income for accounting purposes, I believe they can use a portion of that cash for whatever they want as long as they can redeem the cards on demand.

Looks like their last bond issue was $500m of 10 year callable bonds last month at 2.45%.

Well, yeah, it's definitely good for Starbucks shareholders (including most of the folks here with index funds), but I was more commenting on how much cash people are throwing at expensive coffee.

It's a big number for sure, but it doesn't really tell the whole story. People actually spent $4.9bil last quarter on their fancy coffees, breakfast treats, bags of retail ground and whole bean coffee, and K-cup coffee pods. (2016Q2 results (pdf))

[fattest_foot]

The "Christmas-gift-du-jour" around here from supervisors to subordinates is Starbucks gift cards. Every year, without fail and regardless of who I work for, I get another Starbucks gift card.

I don't drink coffee though, and I'm way too lazy to drive to a Starbucks for a meal (I prefer eating home cooked meals), so the money just piles up. A few years ago we gave away a bunch, but they're starting to add up again.

[johnny847]

The "Christmas-gift-du-jour" around here from supervisors to subordinates is Starbucks gift cards. Every year, without fail and regardless of who I work for, I get another Starbucks gift card.

I don't drink coffee though, and I'm way too lazy to drive to a Starbucks for a meal (I prefer eating home cooked meals), so the money just piles up. A few years ago we gave away a bunch, but they're starting to add up again.

You can sell unused gift cards (for less than face value) to an exchange such as card pool or ABC gift cards.

[MrsPete]

The "Christmas-gift-du-jour" around here from supervisors to subordinates is Starbucks gift cards. Every year, without fail and regardless of who I work for, I get another Starbucks gift card.

I don't drink coffee though, and I'm way too lazy to drive to a Starbucks for a meal (I prefer eating home cooked meals), so the money just piles up. A few years ago we gave away a bunch, but they're starting to add up again.

Me too!  I put them into my college daughter's Christmas stocking.  She's not a Starbuck's addict, but she constantly finds herself in situations where her friends want to meet at Starbuck's to study ... so the cards make it possible for her to take advantage of a study group without spending money. 

A perfect situation?  No, more of a "when life gives you lemons, make lemonade" type of thing.

[Dicey]

The "Christmas-gift-du-jour" around here from supervisors to subordinates is Starbucks gift cards. Every year, without fail and regardless of who I work for, I get another Starbucks gift card.

I don't drink coffee though, and I'm way too lazy to drive to a Starbucks for a meal (I prefer eating home cooked meals), so the money just piles up. A few years ago we gave away a bunch, but they're starting to add up again.

Re-gift them. If you sell them, they lose value. If you pass them on, maximum value for the recipient. Even if they don't drink coffee/eat Bucky's food, they can re-gift it. And so on, and so on...

[JetBlast]

I'll fess up to having about $30 on my Starbucks card. I use the card because I can almost always reload it at 5-10% cash back on one of my credit cards, and you occasionally have spent enough for a free beverage.

I probably go to one at O'Hare once or twice a week, and usually offer to get something for my first officer and flight attendant. Airplane coffee is horrific.

Yeah, it's not mustachian, but we all have our vices.