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Why Starbucks Is Getting Into the Food Business

By Demitri Kalogeropoulos – Apr 13, 2013 at 10:00AM

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The coffee king is looking for ways to keep its sales momentum going in the face of spiking competition.

With casual-dining rivals such as McDonald's (MCD) and Dunkin' Brands (DNKN) pushing deeper into its coffee space, Starbucks (SBUX 1.62%) is set to push back. The company will be rolling out an expanded food menu soon. Fool contributor Demitrios Kalogeropoulos discusses why this makes sense for Starbucks, and what kind of boost it could give to the company's sales.

Fool contributor Demitrios Kalogeropoulos owns shares of McDonald's. Erin Miller owns shares of Starbucks. The Motley Fool recommends and owns shares of McDonald's and Starbucks. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Starbucks Stock Quote
Starbucks
SBUX
$105.05 (1.62%) $1.68
McDonald's Stock Quote
McDonald's
MCD
$273.40 (%)
Dunkin Brands Group Stock Quote
Dunkin Brands Group
DNKN
Schnitzer Steel Industries Stock Quote
Schnitzer Steel Industries
SCHN
$34.72 (3.95%) $1.32

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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