Multiple Growth Drivers for Starbucks Corporation (SBUX)

Take away

The growth prospects for Starbucks look promising. By focusing on food and beverage innovation, improving its operation efficiency and expanding more drive-through locations, Starbucks is expected to reach its annual growth target. By leveraging the acquisition of Teavana and partnership with Green Mountain, Starbucks can expand its complementary offerings while focusing on its core strengths to capture the fast growing home market. Moreover, with a solid balance sheet ($1.7 billion total cash and $549.6 million total debt) and steady cash flow, Starbucks remains a solid buy.

McDonald’s turned in a dismal year in 2012, underperforming the broader market by 25%. Looking ahead, can the Golden Arches reclaim its throne atop the restaurant industry, or will this unsettling trend continue?

The article Multiple Growth Drivers for Starbucks originally appeared on Fool.com and is written by Nick Chiu.

Nick Chiu has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters, McDonald’s, and Starbucks. The Motley Fool owns shares of McDonald’s and Starbucks. Nick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.