All right, I can take the heat. I'm here to ask your opinion: Do you think Starbucks (Nasdaq: SBUX ) is a fad?
Contemplating which products are fads can be a hot-button topic for investors. Last year, before Crocs' (Nasdaq: CROX ) shares' precipitous fall, I commented on the "faddishness" of the shoe. Boy, did I field a lot of angry hate mail at the time. (And no, I'm not, and never was, beholden to any "short sellers' consortium.") So I'm hereby volunteering to take a dose of my own medicine by soliciting feedback in the comment box on the bottom of this page on a stock I own a few shares of, Starbucks.
I still think Starbucks has a bright future, despite the stock's sad performance over the past year or two. I don't believe its brand is tarnished, and I trust it can pull off a turnaround much easier than many other beaten-up retailers can. And if consumers are backing off a bit now, there is the reality that what was an "affordable luxury" a year or two ago may look a tad less affordable as people grow accustomed to $4-plus gas and the high price of food. But is Starbucks done forever? I highly doubt it.
However, given Starbucks' sad two-star rating in our community-intelligence database, Motley Fool CAPS, it looks as though plenty of people disagree.
So let's hear it. Do you think McDonald's (NYSE: MCD ) , Caribou (Nasdaq: CBOU ) , Peet's (Nasdaq: PEET ) , Dunkin Donuts, and Green Mountain Coffee Roasters (Nasdaq: GMCR ) are going to eat Starbucks' lunch? Do you think Howard Schultz's return to the helm is highly overrated in terms of getting back on track? Do you think the only thing lamer than hanging out at Starbucks is hanging out at Starbucks in a pair of Crocs and crooning to a pet rock? Use that comment box below, and share your take on the coffee giant whose stock has fallen and can't get up.
And of course, if you'd like to defend Starbucks as an incredibly undervalued stock at these levels, please feel free to do that, too. Don't be intimidated, since, believe it or not, there are still plenty of people who like Starbucks as an investment -- it's been recommended by both Motley Fool Stock Advisor and Motley Fool Inside Value, for example.
I'm looking forward to seeing some thoughtful feedback on this big question. Until then, enjoy your Friday coffee break!
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