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The Biggest Reason Starbucks Is Fighting McDonald's

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Just when there seems to be a Starbucks (NASDAQ: SBUX  ) on every corner, the Seattle-based company has decided to launch 15 Seattle's Best drive-thrus across the U.S., starting in Dallas.

But why now? Expectations for Starbucks are high. In addition, the company currently trades for a P/E of 31, and the China opportunity may not be enough to satiate investors.

Get the scoop on why Starbucks launched these drive-thrus and catapulted itself into competition with McDonald's  (NYSE: MCD  ) and Panera Bread  (NASDAQ: PNRA  ) . 

After making investors rich in 2011 with an improving Dollar Menu and McCafe expansion, McDonald's has been one of the worst-performing blue-chip stocks of 2012. Our top analyst on the company will tell you whether you should be worried by this trend and shed light on whether McDonald's is a buy at today's prices. Click here now to read our premium research report on the company.

Read/Post Comments (2) | Recommend This Article (4)

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  • Report this Comment On March 29, 2013, at 10:44 PM, Stephano617 wrote:

    If Starbucks is going head to head with Mickey D's, they'll need to "beef" up their food menu to offer more than they have! A few breakfast sandwiches & some dessert items aren't enough to compete with #1 ! And they will have to lower their coffee prices! I drink starbucks, but, they aren't a lunch or dinner drive-thru!

  • Report this Comment On April 01, 2013, at 12:39 AM, Lilblkcows wrote:

    I get a decent breakfast/lunch snack at Starbucks. I would have to be starving to eat at McDonalds. I don't think you can compare customers. The Starbucks group are younger and more concerned about their health.

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Related Tickers

9/28/2016 10:26 AM
SBUX $53.80 Down -0.40 -0.73%
Starbucks CAPS Rating: ****
MCD $114.58 Down -2.30 -1.97%
McDonald's CAPS Rating: ***
PNRA $190.90 Down -2.62 -1.35%
Panera Bread CAPS Rating: ****