) strengthened its presence in China with the opening of two
iconic concept stores in the capital city of Beijing.
The 'coffee tribute' store is located at the Kerry Center,
while the 24-hour store has been set up in the heart of the
Taikoo Li Sanlitun district of Beijing. The new concepts offered
by the stores are expected to boost the Strabucks coffee
experience in the country.
The brand is gaining popularity with consumers across Asia as
the company continuously expands its store base outside the U.S.
The company is increasingly investing in the Asian markets. The
relatively low per-capita consumption as well as a burgeoning
middle class with rising income levels promises significant
growth potential as they increase the demand for convenience food
Starbucks' business in China is rapidly growing and the region
is expected to become its second-largest market by 2014. The
company is planning to take the store count in this region to
1,500 in 70 cities by 2015. Management believes that China and
the Asia-Pacific (CAP) region will drive substantial business
growth over the next five years. The CAP segment is expected to
have more than 4,000 stores by the end of 2013, including more
than 1,000 stores in Mainland China and more than 500 stores in
South Korea. The company also expects to introduce its CPG
business in China in the long term.
Among other emerging markets, Starbucks has 16 stores in the
lucrative Indian market and opened its first store in Vietnam
this year. Further, it plans to open 100 stores each in Indonesia
and Philippines over the next 3-4 years.
Other Stocks to Consider
Starbucks carries a Zacks Rank #3 (Hold). Other restaurateurs
Burger King Worldwide, Inc.
CEC Entertainment Inc.
Cracker Barrel Old Country Store, Inc.
) are currently doing well and have a bright outlook. All these
stocks carry a Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
CEC ENTERTANMNT (CEC): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
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