French bakery chain, La Boulange, owned by
), opened a café in Los Angeles on Jun 12 - the first restaurant
outside its hometown San Francisco.
The La Boulange restaurant features an all-day concept offering
breakfast, lunch and dinner. The restaurant's menu features some
popular dishes available at the San Francisco cafés such as
omelets, granola and yogurt, sandwiches, and burgers made from
grass-fed beef. Beverage options include coffee, tap wine and beer,
house-made specialty cocktails and handmade milkshakes.
The high-end bakery chain, acquired by Starbucks in 2012, runs
22 cafés in San Francisco. La Boulange bakery products are also
available in more than 6,000 company-owned Starbucks stores in the
U.S. and 2,500 licensed stores. These products are expected to be
available in all U.S. stores by the end of this year. Following the
success of the bakery goods, the company is testing La Boulange
lunch items, scheduled to be launched in 2015.
The acquisition has greatly enhanced Starbucks' core food
offering driving increased purchases and thereby growing both
traffic and boosting ticket growth at its U.S. stores.
In fact, premium priced La Boulange bakery items significantly
contributed to improved comps in the U.S. coupled with new
breakfast sandwiches and seasonal beverages in the last reported
quarter - second-quarter fiscal 2014. Food items have significantly
improved comps growth at the U.S. stores in the last 3-4
Other Stocks to Consider
Starbucks carries a Zacks Rank #3 (Hold). Better-ranked
Burger King Worldwide, Inc.
Buffalo Wild Wings Inc.
Red Robin Gourmet Burgers Inc.
). While Buffalo Wild Wings sports a Zacks Rank #1 (Strong Buy),
Burger King and Red Robin carry a Zacks Rank #2 (Buy).
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BUFFALO WLD WNG (BWLD): Free Stock Analysis
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