SBUX to Expand in Southeast Asia - Analyst Blog
April 08 2013 - 1:40PM
Zacks
Starbucks Corporation (SBUX) recently announced
plans to open 100 new stores each in Indonesia and Philippines over
the next 3-4 years.
The coffee giant plans to expand in the lucrative South-East
Asian market by opening 100 new stores in Indonesia over the next 3
years and another 100 in Philippines over the next 4 years.
Starbucks already has a presence across 6 South-East Asian
countries, including Indonesia, Malaysia, the Philippines,
Singapore, Thailand and Vietnam, through more than 700 stores.
The Starbucks brand is gaining popularity with consumers across
Asia as the company continuously expands its store base outside the
U.S. Starbucks is increasingly investing in the Asian markets,
which have significant growth potential due to their relatively low
per-capita consumption as well as a burgeoning middle class with
rising income levels, which in turn is increasing the demand for
convenience food and beverages.
Starbucks’ China and the Asia-Pacific (CAP) segment has produced
strong double-digit comps for 11 consecutive quarters.
Management believes that the CAP region, which has grown 33% (in
terms of revenues) since 2010, will drive more meaningful business
growth over the next 5 years.
Starbucks' business in China is rapidly growing and the region
is expected to become the company’s second-largest market by 2014.
The company is looking forward to take the store count in this
region to 1,500 in 70 cities by 2015.
Recently Starbucks entered the lucrative Indian market with its
first 3 stores opening in Mumbai in October and a 4th
store in Delhi in early 2013. Starbucks also entered the Vietnam
market in Feb 2013 with a store opening in Ho Chi Minh City.
Other Stocks to Consider
Starbucks carries a Zacks Rank #2 (Buy). 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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