Starbucks Corporation (SBUX): Should I Buy?

Single-serve coffee continues to impress
After almost six months of hype, the Starbucks Verismo system — a response to Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)‘  Keurig machine — hit the market and made only a mediocre impact. While Starbucks’ system is fine, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) still easily holds the single-serve crown. Starbucks Corporation (NASDAQ:SBUX) recognized that fact, and reupped its commitment to make pods for the Keurig earlier this month.

The partnership has been lucrative for both companies, and its continuation — for five years at a minimum — is great news for investors on both sides of the agreement. For Starbucks it means that the company doesn’t have to focus all of its energy on its Verismo system, content in the knowledge that it can sell coffee through the wildly popular K-Cup format.

The combination of these three factors should help investors sleep soundly, and should keep competitors up all night. The long run looks great for Starbucks Corporation (NASDAQ:SBUX), and I’ll be watching for new moves throughout the year, as these three points don’t cover all of the great things happening at the company.

The article 3 Reasons to Buy Starbucks Stock originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters, McDonald’s, Panera Bread, and Starbucks. The Motley Fool owns shares of McDonald’s, Panera Bread, and Starbucks.

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