Description: If you’ve tracked how much money you spent at coffee shops in the past few years, there’s a good chance it has gone up. The trend is reflected in rising same-store sales at Starbucks (SBUX) (8 percent in 2013) and Dunkin’ Donuts (DNKN) (3.4 percent). Even if you prefer a boutique coffee shop, it’s hard to deny that the “café scene”—particularly in corporate incarnations—is thriving in the U.S.
Date: Mar 28, 2014
Questions for Discussions:
- What does the financial data suggest to investors interested in these trends?
- Do you think we are headed for saturation in the marketplace or limits to profit margin growth?