Starbucks (SBUX) reported a solid fourth-quarter performance last week, with same-store sales increasing 9% and operating margin rising by 70 basis points over the year-ago quarter.

The increases were driven by a 6% increase in traffic and a 3% increase in average ticket. Starbucks wrapped up a fiscal year in which it saw record earnings every quarter and strong same-store sales growth around the world. The earnings release has met with positive investor response; Starbucks' stock price is up 7% since Nov. 3.

The stock was essentially unchanged in morning trading Monday at $44.43.

Starbucks' competitors in the broader market for specialty coffee include McDonald's (MCD), Caribou Coffee (CBOU) and Peet's Coffee (PEET).

Our price estimate for Starbucks stands at near $40, implying a downside to the market price.

See our full analysis for SBUX

Opportunities on the horizon

Starbucks looks keen to innovate and enter new businesses, such as its recently announced plan to launch lighter-roast coffee with an intent to capture a broader market segment. The company is also trying to enter into the grocery and juice business. Here's a quick peek into what's going on at Starbucks:

• Starbucks plans to open approximately 800 net new stores globally, including 400 in the Americas, 100 in Europe, Middle East, Russia and Africa and 300 in China and Asia Pacific.
• Half of the China and Asia Pacific new stores are planned for China. Over the last year, the company opened a new store every four days in China and it plans to accelerate that pace in 2012.
• It plans to open at least 200 net stores in the U.S. in 2012 and remodel 1,700 existing stores -- the most it has ever remodeled in a year. Store remodels drive traffic and increase efficiency.
• It plans to open its first store in India in 2012 and in Vietnam thereafter. Also has plans to add approximately 12,500 net new jobs globally in 2012.

We are very optimistic about Starbucks' growth strategies. It has been trying to grow organically through new store openings and store re-modellings. The company is also keen to diversify its revenue base and is looking to enter allied businesses. It has been receptive to customer demand with the decision to offer light roast coffee. We believe Starbucks is emerging strong through tough times.

Related Articles:

Starbucks Goes Blonde to Attract Light Coffee Drinkers

Starbucks Could Give the Juice Business a Look

Starbucks Brews Up India-Sized Growth Potential With Tata Coffee Alliance