Reuters recently reported that
) has decided to raise the prices of some of its coffee beverages
in several of its cafes in the U.S., starting this week.
The average coffee price is expected to increase by about 1%
nationally. Reuters states that this would be the first price
increase in some of the regions in close to two years. However,
prices are not expected to go up in some markets like California
The prices of some beverages like Grande or Venti brewed
coffee, as well as Frappuccino and Refreshers are expected to
remain the same. Reuters reported that the price of some of its
coffee beverages, for example, a tall brewed coffee, will
increase by as much as 10 cents.
It is ironical that the coffee prices are being increased at a
time when the company's profits are improving due to lower coffee
costs. In the last reported quarter, the company said that its
operating margins have improved due to strong sales leverage and
lower coffee costs.
Last week, Starbucks announced that starting this week it will
post calorie counts for its beverages and food items on its menus
across all its stores in the U.S. This initiative will provide
further nutritional transparency to Starbucks' customers and will
allow this Zacks Rank # 3 (Hold) company to reap benefits from
evolving consumer needs for healthy and nutritious products.
Other Stocks to Consider
CEC Entertainment Inc.
), carrying a Zacks Rank #1 (Strong Buy) and
Bloomin' Brands, Inc.
Cracker Barrel Old Country Store, Inc.
(CBRL), both carrying a Zacks Rank #2 (Buy) each, are other
stocks worth considering in this space.
BLOOMIN BRANDS (BLMN): 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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