The liquid goodness many fuel our days with is the second most traded commodity in the world, riding shotgun only to oil as a global energy source. It's easy to see why: A morning cup o' joe is a ritualized behavior for many, with an estimated 54% of American adults drinking coffee daily in 2009. Globally, coffee consumption is on the rise as well, up 2% in this most recent year; and the International Coffee Organization sees this trend continuing.
Given the size of this market, I wanted to do a drive-by analysis of five of the most exciting coffee stocks. Here is a quick rundown of some strengths, weaknesses, and market positioning.
Dunkin' Brands Group
Green Mountain Coffee Roasters
Java takeaway: Who's buzzing with growth?
Of the five companies mentioned here, I believe McDonald's and Starbucks are the best positioned for java-fueled highs. Currently they are both among the world's strongest brands. This should help ease international expansion plans as many customers are already familiar with them. They are industry veterans as well, who have both lived the difficulties of overexpansion and are not likely to repeat their mistakes. Lastly, neither company is wholly dependent on coffee sales alone; each offers a range of products, from merchandise to burgers, to offset revenue. McDonald's 3% dividend yield is a nice benefit for investors, too.
Fool contributor Austin Smith owns shares of McDonald's. The Motley Fool owns shares of Starbucks. Motley Fool newsletter services have recommended buying shares of McDonald's, Green Mountain Coffee Roasters, and Starbucks. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. 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.