Let’s face it, many of us are Starbucks addicts. No matter how much we bad mouth the ubiquitous and overpriced coffee chain, we still find ourself in line, waiting to order a skim-no foam, cinnamon spice half-caff latte. (Whatever happened to “black coffee”?)
With so many of us making a daily stop or two, (or three), at their local Starbucks, its no wonder that the chain is likely taking in more deposits than some of your local banks.
According to a MarketWatch report that reviewed data from S&P Global Market Intelligence, Starbucks collected over $1.2 billion in deposits during the first quarter of 2016 from customers looking to purchase drinks, food or merchandise from the ubiquitous coffee chain. The high deposit rate has put the company in a surprising position when compared to some banks and financial institutions.
Starbucks has a long way to go before it ranks with such financial giants as PayPal and its $13.02 billion in deposits, but it’ll be a much easier task to pass Bancorp Inc. with their measly cash intake of just $2.68 billion. The Seattle-based purveyor of caffeinated drinks already ranks above California Republic Bancorp, which collected $1.01 billion in deposits, Mercantile Bank Corp., which earned $680 million in deposits, and Discover Financial Services, which brought in $470 million.
Starbucks cash intake certainly doesn’t hurt its bottom line, as the company’s stock is up 7.4% in the last year, which is way ahead of the 1.6% percent experienced by the S&P 500 over the same time period.