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Starbucks Selling Beer, Will McDonald's Follow?

By Chris Hill – Mar 21, 2014 at 6:18PM

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Will Starbucks' new bet on alcohol pay off, and how closely is McDonald's watching the move?

Starbucks (SBUX -0.08%) held its annual shareholder meeting this week, where the company announced that it will be rolling out across the country an idea that it had previously only been testing at select locations: the sale of beer and wine in its stores in the evening hours. In this segment of Friday's Investor Beat, host Chris Hill and Motley Fool analyst Jason Moser discuss the latest move from Starbucks, and why Jason thinks this will succeed in certain markets where the demand for this exists.

He says, though, that rather than being a revenue game changer for the company, this will be more of an incremental revenue bump upward. When asked, however, if he thinks McDonald's (MCD 0.63%) will be watching the move closely and considering it themselves, he says that he doesn't see any way that an offering like that could fit with McDonald's value model. He would be concerned, as an investor, seeing that company make a similar move.

Chris Hill owns shares of Starbucks. Jason Moser owns shares of Starbucks. The Motley Fool recommends McDonald's and Starbucks. The Motley Fool owns shares of McDonald's and Starbucks. 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.

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