Stock FAQs

why starbucks stock is better than dunkin donuts

by Agustin Reichert Published 3 years ago Updated 2 years ago
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Does Dunkin Donuts have more sales revenue than Starbucks?

In FY 2018, Starbucks generated $24.7 billion in revenue, up 10% from the previous year, while Dunkin' Brands reported sales of more than $1.32 billion, up 3.6% from the previous year. Starbucks has a larger footprint, with some 28,218 locations worldwide, compared to Dunkin' Brands' more than 20,500 points of distribution across the globe.

Is Biggby Coffee better than Starbucks?

Delivery & Pickup Options - 19 reviews of BIGGBY COFFEE "One of my favorite coffee shops for you know what. The people that work there are friendly, plus the coffee drinks are good and strong :) more natural than over at Starbucks."

Is McDonalds more popular than Dunkin' Donuts?

Through this model, McDonald's now has over 39,000 restaurants in more than 100 countries. Dunkin' has not grown to quite that size, but it franchises about 11,300 locations in the U.S. and 36 other countries. Investors might wonder if the path to greater potential returns goes through the golden arches or a coffee and doughnut run.

What are Dunkin Donuts top five best selling donuts?

We Tried 12 Donuts from Dunkin' & This Is the Best One

  • Strawberry Frosted Donut. Julia Guerra/Eat This, Not That! ...
  • Oreo Donut. Julia Guerra/Eat This, Not That! ...
  • Old-Fashioned. Julia Guerra/Eat This, Not That! ...
  • Vanilla Frosted with Sprinkles. Julia Guerra/Eat This, Not That! ...
  • Sugared. Julia Guerra/Eat This, Not That! ...
  • Powdered. ...
  • Blueberry Glazed. ...
  • Boston Cream. ...
  • Chocolate Frosted with Sprinkles. ...
  • Jelly. ...

More items...

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Why is Starbucks better than Dunkin Donuts?

Starbucks has built a more premium brand than Dunkin' Donuts. Starbucks offers a more extensive menu and more product customization, which is reinforced by writing each customer's name on the side of their cup.

Should I invest in Starbucks or Dunkin Donuts?

Despite superior growth prospects, Starbucks stock trades at a small premium to Dunkin' based on a forward price-to-earnings ratio. And the forward dividend yield is comparable. Therefore, investors aren't being asked to make a choice between growth and value. Starbucks offers both and is the better buy.

Is Starbucks more successful than Dunkin?

Despite being founded 20 years after Dunkin' Donuts, Starbucks grew aggressively and is a substantially larger company. In FY 2017, Starbucks generated over $22 billion in revenue while Dunkin' Brands reported sales of more than $860 million.

Why Starbucks is a good stock?

Reason to buy: Valuation Starbucks shares appear awfully cheap at current levels. The coffee-making juggernaut is trading at 21 times earnings today, which is well below the company's five-year, average price-to-earnings (P/E) multiple of 39.

What is Starbucks competitive advantage?

Excellent customer service is one source of Starbucks' competitive advantage. Starbucks' emphasis on ensuring a positive customer experience has allowed it to become one of the leading firms in the coffee industry.

What makes Starbucks unique?

Starbucks, the world's largest coffee retailer, made its brand unique by de-commoditizing the mature coffee space. It fashioned a unique brew and a unique image that appealed to luxury-craving aficionados who relished the prestige, the ritual, and the uniqueness of coffee savoring.

What is Starbucks best known for?

Starbucks Redefined How We Drink Coffee It's one of the most successful companies in the world, not only in the coffee shop business. It is so successful because it was able to provide an experience that changed how much of the world thought about coffee shops and how many of us drink coffee outside of our homes.

Is Starbucks or Dunkin bigger?

Although the US is their stronghold, both are global brands. The Canton-based Dunkins has 10,000 stores in 32 countries and sales of nearly $9 billion. Starbucks is even bigger — the Seattle-based company has $13 billion in sales and 20,000 stores on six continents.

Which is cheaper Starbucks or Dunkin?

When comparing prices, Dunkin Donuts is much lower. A large sized latte at Dunkin donuts costs around $2.49. However a venti latte at Starbucks costs $4.15 That is almost $2 more than Dunkin. Starbucks food menu is also pricier.

Is Starbucks a good stock to Hold?

The valuation is attractive With the stock's decline in 2022, shares are trading hands at a compelling price-to-earnings (P/E) ratio of just over 20. Not only is this near the lowest level that Starbucks has sold for in the past decade, but the stock is also at a slight discount to the S&P 500's P/E ratio of 21.

Is Starbucks a good stock to buy long term?

Overall, Starbucks is still quite positive about its long-term earnings per share growth potential. According to investor presentations from the recent past, management is still expecting annual growth rates between 10% and 12% for earnings per share over the long run.

Why is Starbucks stock going up?

U.S. comps climbed 12%, driven by a 7% rise in average ticket size and a 5% increase in transactions. That led Starbucks' overall same-store sales to grow by a solid 7%. Better still, new store openings helped to drive Starbucks' companywide revenue up by 15% to $7.6 billion.

What is Starbucks brand?

How much does Starbucks make a year?

Starbucks brands itself primarily as a beverage provider that offers a more typical coffee house dining experience. Starbucks' locations are designed with the comfort of customers in mind. Free internet access and inviting decor are meant to offer a more enticing option for those looking for a place to read, relax, or chat with friends.

Who is the next chair of Starbucks board of directors?

Starbucks generates over $26 billion a year in revenue, while Dunkin' Brands' annual revenues are just under $1.5 billion. Starbucks has a larger footprint, with over 30,000 locations worldwide, compared to Dunkin' Brands' 11,300 locations. In the U.S., Starbucks leads with about 15,000 locations compared to the nearly 8,500 Dunkin' Donuts ...

Is Starbucks a licensed store?

Just like Dunkin', in mid-2018, Starbucks reorganized management. Starbucks announced Howard Schultz's departure from the company in 2018. Myron E. Ullman was appointed the next chair of the Starbucks board of directors, and Mellody Hobson was appointed vice chair.

How many Starbucks locations will be open in 2020?

Licensed Starbucks stores are disproportionately located outside the U.S., as corporate-owned and operated stores account for roughly 60% of stores in the U.S and half of its locations overseas.

Is Dunkin' Donuts a franchise?

Starbucks has added over 300 net new locations in the country in fiscal 2020 as of its third quarter, despite the coronavirus headwinds. And it plans to add around 200 more before the end of its fourth quarter, which will bring total locations in China to around 4,600, all company owned.

Dunkin' Brands

That's because Dunkin' is a franchised business and generates revenue from sources like fees and rental payments, not sales. Annual revenue growth has been less than 4% over the last three years. What Dunkin' does do well as a franchised business is grow its earnings per share.

Starbucks

Dunkin's core brands, Dunkin' Donuts and Baskin-Robbins, continue to resonate with consumers. This quickly becomes evident if you look at the company's recent growth, measured both by financial metrics and store count.

1. The atmosphere is chill

While Dunkin's growth outlook is solid, it's not as good as Starbucks'. The coffee king's EPS has been increasing at about 18% year over year in recent quarters, U.S. comparable-store sales jumped 4% in the company's most recently reported quarter, and analysts expect EPS to increase at an average annualized rate of about 20% in 2016 and 2017.

2. There is availability of healthy options

There’s no garish orange signs or fluorescent lights that make my already sleep-deprived face look more deathly.

5. You can get an amazing Insta

Emergency KIND bars at the register and green juices in the fridge? Yass.

11. You can get free water

No one Instas their Dunkin’, but you’ll find every basic girl Insta-ing their Starbucks — and for good reason.

13. Frappuccinos. Enough said

You can’t go wrong with free anything, especially not water. Gotta stay hydrated, ya know?

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