recently announced its plans to open 100 new stores in Malaysia
over the next four years. Starbucks cafes have been present in
this South-East Asian market for 15 years and currently the
company has 141 stores across the country.
Earlier, in April, the coffee giant had announced plans to
open 100 new stores each in other lucrative South East Asian
markets of Indonesia and Philippines over the next 3-4 years.
Starbucks also plans to double the number of stores in Thailand
over the next five years.
Starbucks already has a presence across 6 South-East Asian
countries, including Indonesia, Malaysia, the Philippines,
Singapore, Thailand and Vietnam, through more than 700
The Starbucks brand is gaining popularity with consumers
across Asia as the company continuously expands its store base
outside the U.S. Starbucks is increasingly investing in the Asian
markets, which have significant growth potential due to their
relatively low per-capita consumption and burgeoning middle class
population with rising income levels. This in turn is increasing
the demand for convenience food and beverages.
Management believes that its China and the Asia-Pacific (CAP)
segment, which has grown 33% (in terms of revenues) since 2010,
will drive more meaningful business growth over the next 5 years.
Starbucks' business in China is rapidly growing and the region is
expected to become the company's second-largest market by 2014.
The company is looking forward to take the store count in this
region to 1,500 in 70 cities by 2015. Starbucks has 12 stores in
the lucrative Indian market and opened its first store in Vietnam
Other Stocks to Consider
Starbucks carries a Zacks Rank #2 (Buy). Some other stocks in
the retail/restaurant industry that are currently doing well and
are worth considering include
CEC Entertainment Inc.
Brinker International, Inc.
), both carrying a Zacks Rank #1 (Strong Buy) and
Bloomin' Brands, Inc.
), carrying a Zacks Rank #2 (Buy).
BLOOMIN BRANDS (BLMN): Free Stock Analysis
CEC ENTERTANMNT (CEC): Free Stock Analysis
BRINKER INTL (EAT): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
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