Starbucks to Open 15 Drive-Thru Cafes - Analyst Blog
March 19 2013 - 6:20AM
Zacks
Coffee giant, Starbucks Corporation’s (SBUX)
popular coffee brand Seattle’s Best Coffee announced plans to open
15 new drive-thru cafes in the Dallas-Fort Worth region this
spring.
Drive Thru cafes are Seattle Best Coffee’s new retail concept
which are increasingly gaining popularity. This concept caters to a
growing number of coffee lovers who don’t have the time to go to a
café. Moreover, these cafes generate incremental revenues and
profits compared to traditional stores.
The menu at these cafes will include coffee, dessert-inspired
specialty coffee drinks, hearty egg sandwiches and pretzel melts,
and sweet and savory handheld Anytime Pies. The cafes will also
provide more than 150 new full- and part-time jobs to the
region.
Starbucks also announced the appointment of Sharon Rothstein as
its global chief marketing officer. Rothstein previously served as
senior vice president of marketing at specialty beauty retailer
Sephora.
Starbucks carries a Zacks Rank #3 (Hold). We like Starbucks’
strong market standing, new product launches, rapid growth in
China, the flourishing Channel Development business as well as the
solid turnaround in its U.S. business. We believe that the company
has compelling growth drivers like La Boulange bakery products,
Verismo at-home-coffee machine, Teavana tea and K-Cups packs to
sustain earnings momentum in the next few quarters. However, poor
sales in Europe due to the depressed macroeconomic conditions keep
us on the sidelines.
Other Stocks to Consider
Some other stocks in the retail/restaurant industry that are
currently doing well and are worth considering include Red
Robin Gourmet Burgers Inc. (RRGB) – Zacks Rank #1 (Strong
Buy), Burger King Worldwide, Inc. (BKW) – Zacks
Rank #2 (Buy) and Dunkin' Brands Group, Inc.
(DNKN) – Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis Report
DUNKIN BRANDS (DNKN): Free Stock Analysis Report
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis Report
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