U.S. coffee retailer Starbucks (NASDAQ:SBUX) intends to build on the success of its ‘drive-thru’ stores in Britain by opening 200 new drive-thru stores over the next five years to address demand for coffee on-the-go. This would be combined with more openings of conventional stores. The move is a clear shot at McDonald’s (NYSE:MCD) which has dominated the quicker coffee market with drive-thrus.
Starbucks’ existing drive-thru stores elicited a “strong customer response” and the new stores would make the company the market leader in this field.
In heartening news for Britain, these new stores would create about 5000 employment openings. Kris Engskov, Managing Director of Starbucks (NASDAQ:SBUX) UK & Ireland, said, “We are able to create quality jobs at a time when they are most needed and because half of our baristas are under 24 years-old, this will particularly benefit young job-seekers at a time of record youth unemployment.”
British Prime Minister David Cameron said in a statement, “I welcome Starbucks’ announcement, and I am glad to see continued investment and job creation in the private sector.”
Here’s how Starbucks and McDonald’s are trading on the news:
Starbucks Corp. (NASDAQ:SBUX): SBUX shares recently traded at $43.31, down $0.17, or 0.39%. They have traded in a 52-week range of $30.75 to $44.70. Volume today was 1,213,823 shares versus a 3-month average volume of 7,398,850 shares. The company’s trailing P/E is 26.73, while trailing earnings are $1.62 per share.
McDonald’s Corp. (NYSE:MCD): MCD shares recently traded at $95.32, down $0.2, or 0.21%. They have traded in a 52-week range of $72.14 to $95.68. Volume today was 967,039 shares versus a 3-month average volume of 6,567,030 shares. The company’s trailing P/E is 18.70, while trailing earnings are $5.10 per share.