Starbucks Corporation (SBUX), Dunkin Brands Group Inc (DNKN), And One Company Everyone Is Talking About

The recent addition of local favorites such as Peach Blossom Tea Latte and Chestnut Macchiato to its menu combined with further development of its membership-rewards program have helped the company gain ground in the region. Starbucks plans to continue with the above initiatives as it wants to develop China as the biggest market after the US. By 2015, the company plans to open 1,500 cafes in China.

Strong performance in the second quarter makes Starbucks confident about the remainder of 2013. The company increased its expectations for its full-year earnings per share to a range of $2.12 to $2.18 from its previous expectation of $2.06 to $2.15.

What to expect?

While Starbucks remains at the top of its game, it may face competition from its peer Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). In its last quarterly results, the company reported some great numbers. Revenue for the quarter grew 14%, while earnings per share increased by an astounding 50% to $0.87. Keurig Single Cup Brewers and related accessories contributed the majority of the sales for the quarter.

With good numbers flowing in, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) looks all set for growth in the quarters to come. Not surprisingly, the company expects sales growth of between 15% and 20% in 2013. Earnings per share are expected to between $3.05 and $3.15 as compared to $2.40 in the previous fiscal year. In the quarters to come, the company plans to achieve higher penetration of Keurig systems in US households, and also to experiment with new products and new geographical regions.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)’s share price has come a long way from the lows reached in 2012, surprising many who expected the stock to fall post September. That’s when its K-Cups patent expired and Starbucks launched Verismo, Keurig’s competitor. All in all, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has been doing quite well and will probably continue doing so.

What to do?

When it comes to brand loyalty, no one does it better than Starbucks. The company has more than 11,000 outlets in the US, with more coming in the future. Expansion in countries like Brazil and India in the years to come will only add to its global brand image.

An ever-increasing customer base, expansion plans in key markets, a solid track record at home, and great numbers in its quarterly results make me optimistic about this stock. Shares are trading near their 52-week high. This makes them a tad expensive but I’d still want to go long. This is one stock that is a must-have in your long-term portfolio.

The article One Company Everyone Is Talking About originally appeared on Fool.com is written by Sonam Chamaria.

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

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!