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Posted
Oct 15 2009, 04:03 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
McDonald’s (MCD) was supposed to crush Starbucks (SBUX) in the premium coffee business when the world’s largest restaurant chain introduced a line of premium java more than a year ago.
It turns out that McDonald’s impressive start as competition to Starbucks, Dunkin’ Donuts, and other specialty coffee retailers has begun to flag.
New research shows the momentum in terms of store traffic patterns has turned in Starbucks’ direction and it is likely that the trend will continue.
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Posted
Oct 06 2009, 05:53 PM
by
InvestorPlace
Rating:
Money Blog: Top Stocks Blog - MSN Money
 This article was written by InvestorPlace.
Most companies would have trouble dealing with a direct competitor that is fifty times their size. Caribou Coffee (CBOU) seems to have defied the odds. Since the beginning of the year, the coffee chain's stock is up 250% to almost $6, while Starbucks (SBUX), the 600-pound gorilla of the industry, is up 110%.
Bing: Coffee Stocks
Caribou has been successful by being where Starbucks isn't, and by watching costs. In the quarter than ended in June, revenue was actually down very slightly to $63 million, but expenses dropped as well, from $26 million in the same quarter a year ago to under $24 million.
Caribou has not attempted to do what Starbucks has, which is become everything to everyone in the high-end coffee and snack business. Caribou has only 500 stores in 16 states. Caribou does not have locations is areas that are highly crowded and competitive, like the New York City area or Boston where Starbucks is a major presence. Caribou's stronghold is in the Midwest.
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Posted
Oct 01 2009, 09:17 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
 This article is written by Minyanville's Glenn Curtis
It’s pretty likely that some upper-crust retailers may see small pockets of strength in the months to come. But for the most part, frugal shoppers (like me -- I’m cheap) will be searching out low prices and clearance specials -- particularly during the holiday season -- and as such, will be more likely to schlep their way to the popular discount stores. Click here for my last take on Costco.
Washington-based wholesale club Costco (COST) has some things going for it as well as some things that aren’t too swift. Here they are (in no particular order):
1. I do agree that some consumers are looking to save money and costly trips to the store (read: gas) by buying items in bulk. However, I also believe that the vast majority of consumers are looking for storefronts that carry wide-ranging merchandise selections that are known for their super low prices.
You may be wondering: Isn’t that kind of what Costco does? The answer is sort of. It has many types of food, some clothing, some books, and other merchandise. But if you’re interested in a certain variety of ketchup or need to replace one light bulb (that is, you don’t need items sold by the truckload but still want them at rock-bottom prices), I’d wager you’ll hit a store like Wal-Mart (WMT), or perhaps a Target (TGT) first. While not as plentiful as the proverbial Starbucks (SBUX) on every corner, both Wal-Mart and Target are convenient for most cost-conscious Americans. See also my recent take on Starbucks, Starbucks Chatter Is Appetizing
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Posted
Sep 29 2009, 03:47 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
 Starbucks (SBUX) has been talking about its foray into the instant coffee business, and its product, “VIA Ready-Brew,” finally launches in the U.S. and Canada today.
According to the company, VIA "is made with a proprietary, U.S. patent-pending microgrind technology to preserve the coffee’s taste, quality and freshness.” Chief executive Howard Schultz sees the launch as a way to get the firm into the $21 billion instant coffee business using its brand power as leverage (see video below).
It may not matter if VIA is “better” than the coffee that Starbucks sells in its stores, since that will be a subjective decision on the part of consumers. What will matter is that the margins on the instant product are probably very high, at $2.95 for a three pack.
That will help Starbucks keep the momentum that cost cuts and slightly improving sales have given to its share price, which, at above $20, is more than double its 52-week low.
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Posted
Sep 10 2009, 09:06 AM
by
Louis Navellier
Rating:
Money Blog: Top Stocks Blog - MSN Money
Quietly, Starbucks (SBUX) has hit a 52-week high of $20.21.
It may not be a coincidence that this happened as McDonald's (MCD) same-store sales posted an increase of just 2.2%, a disappointment. Starbucks may be taking back some of its core coffee drinkers. The coffee shop chain has certainly done everything in its power to restore the value of its brand and reclaim its franchise. Bing: Starbucks taste test results
Moody's acknowledged this early in the week by upgrading the Starbucks short-term and commercial paper rating from A-3 to A-2.
"The ratings are based on Starbucks' leading market position and excellent brand recognition in the specialty coffee market in the U.S., as well as a history of strong cash flow generation," said Jackie Oberoi, an S&P credit analyst, in a statement.
Starbucks struggled early in its turnaround attempt just after founder Howard Schultz returned to the CEO's job in January 2008. The company's shares traded close to $20 then. Schulz cut costs and fired 12,000 people, but he could not reverse a sharp decline in revenue. By November 2008, the firm's stock was trading just above $7.
The recent success of Starbucks is improbable. McDonald's has many more locations and its premium coffee has gotten very good grades from places like Consumer Reports. Some analysts believed that McDonald's and Dunkin Donuts seized many of Starbucks regular customers. Schulz had no clear way to counter this, so he tried a large number of tactics, probably hoping that some of them would work
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Posted
Aug 24 2009, 04:02 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
 Steve Jobs worked at Apple (AAPL) for $1 a year in 2000, just before the launch of the iPod, which completely changed the company’s fortunes and made him astonishingly wealthy. Lee Iaccoca worked for $1 in 1978 when he took charge of crippled Chrysler.
The dollar-a-year tradition has fallen on hard times. The most recent apostle of the practice was Edward Liddy who took the chief executive’s job at American International Group (AIG) when it was deeply troubled. He had been the head of Allstate (ALL), so he probably did not need to make several million dollars. Liddy took the job as a public service, an action which seems to be both anachronistic and idealistic. Liddy worked hard to restructure the insurance company, but was derided mercilessly by Congress because AIG executives received large pay packages on his watch. The irony of this issue was that Liddy had nothing to do with the compensation agreements. Liddy was replaced by Robert Benmosche, the former chief executive of MetLife (MET). Benmosche presumably is wealthy enough to work for nothing, but insisted on being paid $7 million. The taxpayers who own 85% of AIG are appropriately enraged that AIG let Liddy leave.
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Posted
Aug 21 2009, 03:54 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Starbucks (SBUX) has come up with a plan to lower prices on many of its drinks and raise prices on others. The process is almost certainly not random, but the company’s thinking will not be passed on to customers.
The cost of small coffees and lattes will drop as much as 10 cents in many markets. Starbucks is probably admitting that the lower end of its customer base, people with the least money, are unwilling to part with more than a couple of dollars at a time. The pricing for drinks might be called recession specials.
Starbucks has almost certainly become more clever and methodical about what it charges consumers. The prices on the most expensive drinks that it sells will go up as much as 25 cents. People who pay $3 or $4 for a beverage are probably less likely to be bothered by the increase. Starbucks’ most elaborate beverages, which contain a number of ingredients, are probably more expensive to make.
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Posted
Aug 20 2009, 12:10 PM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
 Starbucks (SBUX) is delivering bad and good news to customers this week. It's raising prices. And it's lowering prices.
The coffee giant will charge customers more for bigger, fancier drinks, The Wall Street Journal reports. The venti caramel macchiato, for example, will cost 25 cents more. The cost to add another espresso shot or more milk or syrup will also rise by 10 to 15 cents. Bing: More on Starbucks' prices
But smaller drinks, such as a tall latte or a tall coffee, will cost 5 or 10 cents less. The new prices are being rolled out in some cities initially, and will go nationwide in a few months. Is a price change the right move in this economy? Starbucks is preparing for some pushback,
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Posted
Jul 29 2009, 12:52 PM
by
Louis Navellier
Rating:
Money Blog: Top Stocks Blog - MSN Money
For millions of Americans, and indeed for millions around the globe, there's nothing like a piping hot cup of coffee to help kick start the day. It's the beverage of choice for the hordes on Wall Street, many of whom rely on a strong cup of java to help propel them through a stressful trading day.
But Wall Street pros don't just relegate their relationship with coffee to what's inside their mugs. For many professionals, as well as for many individual investors, coffee is more about buying and selling shares of the best coffee stocks out there. And if you know which coffee stocks to buy, you might find your portfolio more pumped up than the lift you get from a triple shot of espresso.
Here are three of my favorite coffee stocks now
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Posted
Jul 29 2009, 10:22 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
We’re smack-dab in the middle of what Maria Bartiromo has dubbed as “the most important earnings season in a decade." It’s certainly an unprecedented time for businesses to prove their financial strength to investors. However, I can only half agree with Maria, because in this particular earnings season, it isn’t all about the profits. That may sound crazy, given most of the traditional financial media’s tendency to fixate on bottom-line figures. To clarify, I’m not suggesting that earnings aren’t important. Profits earned by companies operating in a well-oiled economy are, for the most part, reasonable indicators of how well a firm is performing. However, businesses today are faced with anything but normal economic conditions. As the world economy began to collapse, many management teams rushed into survival mode and took drastic measures to shield their companies from sagging bottom lines. For the time being, the actions taken may temper earnings declines or losses. Heck -- many companies might even be able to report better-than-expected earnings.
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