It's already been a pretty busy year for Starbucks
Starbucks has announced a few initiatives and goals for 2012 that investors are betting on already. In June, Starbucks announced its plan to purchase San Francisco-based La Boulange bakery. This adds to Starbucks' baked goods line, and should help the company increase its average customer receipt value. In its last quarter, Starbucks posted a weak increase in average ticket value, rising only 1%.The addition of new bakery items should help push this figure up.
In July, the company announced a new line of cold beverages called "Refreshers." These are fruity drinks that are caffeinated using green coffee beans. Though not mentioned explicitly in the launch, investors should be cheering the extra value that Starbucks is generating here. Starbucks already purchases huge amounts of green coffee every year. Most of it is roasted for coffee blends, but the addition of the green coffee beverages means that spare coffee can be used to create another high-margin product.
Changes out of store
The biggest out-of-store development for Starbucks is its announcement regarding single brew machines. This puts it in direct competition with Green Mountain Coffee
Along with expanding into homes, Starbucks has struck a deal with Coinstar
One last unknown
The biggest question for Starbucks right now is whether it will make a bid for Peet's
The major benefit for Starbucks would be a larger foothold into the European market. Currently, Starbucks' entire European, Middle East, and African store division produces only 9% of total revenue. If it wants to expand that, Peet's could be a key into international grocery stores. Starbucks' main concern now will be the price tag associated with any bid. Peet's is trading at 33 times forward earnings, putting an incredible premium on the company's future.
The bottom line
Starbucks has already made some exciting headlines this year. The company is expanding its offerings in a meaningful and organized way. I think that Starbucks can make a great addition to portfolios lacking in retail or restaurant stocks. With a good-looking 2012 ahead of it, this stock should have no problem keeping up with the competition.
Starbucks' next big hurdle is making better progress outside of the U.S., but that's not everyone's problem. For instance, Green Mountain Coffee Roasters has to worry about a number of things, including the expiration of key patents later this year. Read all about the key opportunities and risks facing the company in our just-released premium research report on Green Mountain. To make sure you know everything you need to know about this fallen growth stock, click here.
Fool contributor Andrew Marder does not own any of the stocks mentioned in this article. The Motley Fool owns shares of Green Mountain Coffee Roasters and Starbucks. Motley Fool newsletter services have recommended buying shares of Coinstar, Starbucks, and Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended writing covered calls on Starbucks. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.