Friday, 24 April 2015

Starbucks expanding into food and alcohol in the UK market can only mean one thing for their share price- onwards and upwards

I am interested in food and beverage stocks especially coffee chains, like Starbucks. I am planning to invest in a coffee shop chain and probably will opt for Costa, which is part of the Whitbread company, however Starbucks is enticing me after reading their latest news. Yes the coffee giant are now offering food and alcohol. Starbucks seems to do most of their trade in airports here in the UK. I say this because I have seen Starbucks coffee shops close in my home town due to poor trade. It seems to do poorly compared to it's competitors in other cities and towns nearby BUT it does fabulous in airports partly because it is the only big brand coffee shop there. In saying that I am sure the lease for airport trading is incredibly expensive.

Starbucks has opened an alcohol and food franchise in Edinburgh airport. Airports are notoriously busy and people are known for enjoying a drink before they head off on their holidays. I for one would enjoy a nice glass of rose or prosecco, while my better half could have one of their fancy flavoured lattes. If we are feeling peckish we can take advantage of the prawn and chorizo skewers. We can then enjoy a delicious bun for dessert. I think the new revamped Starbucks will take off in a big way. If it proves to be successful in Edinburgh airport I can see it expanding their hot food and alcohol services to other UK airports and maybe some city franchises. I could see it doing well in a student area.

If you want to invest in Starbucks shares this year to take advantage of dividends, bad news as the ex dividend date was in February. However if you feel the same way as me and believe that the new menu will help the company grow and gain more profits you may be happy to purchase some shares and take advantage of future dividends.

1 comment:

  1. SBUX still has lots of room for growth in the future and after their stock split many potential investors might want to climb aboard at more "affordable" levels. Interesting to read a take about SBUX from someone outside the U.S.

    ReplyDelete

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