Starbucks (NASDAQ:SBUX) recorded the second-highest quarterly profit in its 42-year history last quarter, and Fool contributor Demitrios Kalogeropoulos thinks that it should report even better results when it announces earnings results on Wednesday.
One key driver for this quarter's growth should be an uptick in food sales, Demitrios says in the video below. Increased lunchtime business helped Starbucks log its blowout 9% comparable sales growth last quarter, and a much-expanded baked goods menu rollout has likely reached the point where it is finally making a contribution to sales growth. That sets the stage for Starbucks to continue to expand much faster than rivals Panera Bread (NASDAQ:PNRA.DL) and McDonald's (NYSE:MCD), which have seen their businesses stall lately.
Fool contributor Demitrios Kalogeropoulos owns shares of McDonald's and Starbucks. The Motley Fool recommends McDonald's, Panera Bread, and Starbucks. The Motley Fool owns shares of McDonald's, Panera Bread, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.