), in pursuit of its aim to launch 1,500 coffee shops in China,
recently announced the opening of its 100
store in Beijing. The company also announced the launch of
Starbucks China University, a program aimed to enhance the coffee
and service expertise of its employees.
The new store in Beijing is located at the Solana
International Business District and is staffed by certified
employees, nicknamed as Starbucks Coffee Masters by the
Starbucks opened its first store in Beijing, also the first in
China, in 1999. Currently, the coffee giant owns 700 stores in
Mainland China and plans to have 1,500 stores across more than 70
cities in the country by 2015.Starbucks' business in China is
rapidly growing and the region is expected to become the
company's second-largest market by 2014.
The Starbucks brand is gaining popularity among consumers
across Asia and the company is continuously expanding its store
base outside U.S. Management believes the China
Asia-Pacific (CAP) region will drive significantly higher
business growth over the next five years. Following the strong
fiscal third quarter 2012 performance; this region has produced
strong double digit comps for 10 consecutive quarters now. Of the
400 and 500 stores targeted to be opened in the CAP region in
fiscal 2012 and 2013, respectively, more than half will be opened
in China alone.
We currently have a long-term Neutral recommendation on
Starbucks, supported by a Zacks #3 Rank (a short-term Hold
Starbucks' fiscal fourth quarter earnings were much better
than the past quarter driven by solid-top line growth and margin
expansion. Following the solid fourth quarter results, Starbucks
upped its forecast for earnings, operating margins and global net
new stores for fiscal 2013. We are encouraged by Starbucks'
strong market position, new product launches, rapid growth in
China and the flourishing Channel Development segment as well as
solid turnaround in its U.S. business. However, poor sales
performance in Europe due to depressed macroeconomic conditions
keeps us on the sidelines.
Green Mountain Coffee Roasters Inc
), carrying a Zacks #4 Rank (a short term 'Sell' rating),
announced impressive fourth quarter results this week, beating
the Zacks Consensus Estimate for both sales and earnings.
GREEN MTN COFFE (GMCR): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
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