McDonald’s Corporation (MCD), Burger King Worldwide Inc (BKW), Starbucks Corporation (SBUX): Why Investors Should Care About Vietnam

Bold like the coffee

Vietnam is the next major market for Starbucks Corporation (NASDAQ:SBUX), which has already asserted itself throughout the majority of the Asia Pacific market. The potential within China has been highly publicized, however Vietnam has yet to receive similar coverage. The company opened its flagship store in Ho Chi Minh City earlier this year, and wow, it’s not your average Starbucks Corporation (NASDAQ:SBUX) either.

The two-story coffee house has been welcomed with open arms, and the shop offers consumers the typical Starbucks Corporation (NASDAQ:SBUX) staples in addition to market specific favorites such as the Parisian Baguette and Roast Duck Wrap. The company leveraged its current partnership with Hong Kong Maxim’s Group to help with a full scale roll-out. The demographic of Vietnam fits well with the image and customer base Starbucks Corporation (NASDAQ:SBUX) like to target. The country is made up of young, well educated individuals, exactly the customer base Starbucks pulls here in the United States. Moreover, I would expect the company’s free Internet access a huge plus for the majority of patrons as its has been in its other international markets, such as India.

Wrap-Up

While Vietnam may be small in geographic terms, the county may offer huge potential for established brands looking to diversify their growth even further. McDonald’s Corporation (NYSE:MCD) is set to open its first location within the country by early 2014, and I would expect the company to find similar success seen by the already established Burger King Worldwide Inc (NYSE:BKW). Starbucks Corporation (NASDAQ:SBUX) has taken baby steps within the region in preparation for a full scale release in the years ahead. While we cannot say today the magnitude of Vietnam in terms of revenues, I fully expect Vietnam will positively impact these companies over the coming years.

The article Why Investors Should Care About Vietnam originally appeared on Fool.com and is written by Nathaniel Matherson.

Nathaniel Matherson has long position in Starbucks. The Motley Fool recommends Burger King Worldwide, McDonald’s, and Starbucks. The Motley Fool owns shares of McDonald’s and Starbucks. Nathaniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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