Starbucks Corporation (SBUX), Dunkin Brands Group Inc (DNKN): Coffee and Donuts Are Treats for Investors

Krispy Kreme still fills the dough

Some folks consider the treats baked by Krispy Kreme Doughnuts (NYSE:KKD) to be an indulgence par excellence.

But many will also be surprised to learn the company first started baking back in 1937 in Winston-Salem, NC. The outfit went public in 2000, and has had its ups and downs since then. However, the company is on the rise again. And CEO Jim Morgan recently pronounced that Krispy Kreme Doughnuts (NYSE:KKD) is no longer in a turn around.

The krispy kids have bold plans to expand by not only offering a new line of treats, but breaking into the beverage side of the business as well. This might pose a challenge to Starbucks Corporation (NASDAQ:SBUX) and Dunkin Donuts as well as the waist lines of its doughnut dunkers. Moreover, this will also serve investors’ wallets well. In fact, recent earnings reports show a quarterly revenue increase of 11% and same-store sales increase of 11.4% – 18 consecutive quarters of same-store sales growth.

The last drop

The boom of the coffee chain sector is not a flash in the pan and this is evidenced not only by the demand for good coffee and tasty treats, but also by the business models of all these houses of delight. And if the economic recovery kicks in along with the caffeine, consumers and investors should enjoy the ride.

The article Coffee and Donuts Are Treats for Investors originally appeared on Fool.com and is written by Kyle Colona.

Kyle Colona has no position in any stocks mentioned. The Motley Fool recommends Starbucks. The Motley Fool owns shares of Starbucks. Kyle 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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