Starbucks Corporation (SBUX), Green Mountain Coffee Roasters Inc. (GMCR): Wake up, Grab Some Coffee, and Invest in It

When it comes to future growth, analysts are likely throwing Starbucks Corporation (NASDAQ:SBUX)’s Keurig competitor, Verismo, into the mix. In 2013, analysts are calling for 22% growth. Over the next five years, they’ve forecast 18.2% growth. When you’re talking about a coffee company the size of Starbucks, I don’t think you could be disappointed with that.

Oh, Canada!

I’m going to assume there aren’t many people in the United States, particularly in the southern states that have heard of Tim Hortons Inc. (USA) (NYSE:THI). With more than 4,500 locations, predominantly in Canada, this company is a force in the coffee world.

Sales at Timmy’s have been growing every single year, even throughout that recession we had, for the last decade. Last year the company managed to do just over $3 billion in sales.

If those analysts covering the stock have some sort of accuracy with their predictions then we could be seeing this company grow by 10% per year over the next two years.

Tim Hortons Inc. (USA) (NYSE:THI) does not have some sort of Keurig machine out there in the world, sorry guys. What they do have is market control up in Canada. When it comes to expansion, they’re slowly working their way down from the Canadian border. The company has stores in Ohio, and NY. Outside of North America, the company has 19 stores in the United Arab Emirates, and one in Oman.

Investor Takeaway

Starbucks is a great investment. When it comes to the growth that analysts have projected for this company, and the potential of the Verismo to sell quite a few units, it make me want to own the stock.

Green Mountain Coffee Roasters is another stock that analysts believe will have exceptional growth over the next five years. While they don’t have the retail positioning that Starbucks has, they do have the Keurigs out there in lots of homes. Those Keurigs need to be refilled, and that’s where Green Mountain will find a nice “perpetuity” coming their way.

Tim Hortons is not wowing analysts as much as the other two, but this company will no doubt appeal to investors who want that international exposure. With segments now in the middle east, Tim Hortons could really broaden your portfolios horizon.

The article Wake up, Grab Some Coffee, and Invest in It originally appeared on Fool.com and is written by Ash Anderson.

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