The War of the Coffee Giants: Dunkin Brands Group Inc (DNKN), Starbucks Corporation (SBUX)

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Wrap Up

Another peer, The J.M. Smucker Company (NYSE:SJM), reported a staggering 50% spike in its K-cup sales. Its revenues were up by 6%, but this growth was mainly driven by its acquisition of Sara Lee. The acquisition of the coffee brand accounted for nearly 30% of its revenue growth, without which its revenue growth would’ve clocked in at around 4%. Even after the inorganic growth, the consensus annual EPS growth estimate for JM Smucker is only 8.43% while Starbucks and Dunkin Brands sport 18.57% and 15.43% respectively.

Although JM Smucker is a good company, I believe that investing in Starbucks or Dunkin Brands would greater returns.

The article The War of the Coffee Giants originally appeared on Fool.com and is written by Piyush Arora.

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