Will I invest in Dunkin Brands or McDonalds?
I do not have plans to buy shares of McDonald’s Corporation (NYSE:MCD), however, for anyone looking for solid and safe dividends, I believe this company qualifies as a good investment. Currently paying $3.08 (3.10%) annually, I expect McDonald’s Corporation (NYSE:MCD) to continue to increase their dividend payout as they slow their pace of new restaurant openings.
Dunkin Brands Group Inc (NASDAQ:DNKN) is officially on my watch list. I am intrigued by their strong net income margins and will be watching and studying them the next few quarters. If I get a good feel and understanding of the company, they could find a place in my portfolio.
What does this mean for Starbucks?
Starbucks Corporation (NASDAQ:SBUX) still has work to do on its bottom line, but I am not about to hit the panic button . As they remain on a major building project, I only expect small yearly improvements in net income. The future looks bright for Starbucks, take a quick look at some key growth drivers:
**Teavana: With tea one of the most consumed beverages around the world, this new purchase offers years of major expansion.
**La Boulange: Still in only a handful of stores, I believe, offers the most promising revenue and profit expansion the company has seen in years. When their delicious pastries and flaky croissants are introduced across the United States, La Boulange will have a huge impact on Starbucks Corporation (NASDAQ:SBUX) average ticket.
**Asian expansion will remain strong for years. Starbucks currently has 700 stores in China, with plains to open 800 more by 2015. This is just scratching the surface, however, in a country five times larger than the United States. This year also saw the first Starbucks Corporation (NASDAQ:SBUX) open in India and Vietnam, these two countries could easily add another 1,000 stores or so.
Foolish bottom line
Starbucks remains one of my top five holdings, one that I expect to own for many years to come. With these growth drivers, this company has a very bright future. Additionally, with a top notch management team, there is always the chance that they will introduce new growth drivers that today we can not even dream of.
Even after the stock price recently hit all time highs, if I did not own shares, I would still be happy to start a position today. I expect to be a proud owner for many years to come. In the mean time, I will be keeping a eye on Dunkin Brands Group Inc (NASDAQ:DNKN).
What say you? Please leave comments below.
The article Starbucks, Where Did My Money Go? originally appeared on Fool.com and is written by David Paxton.
David Paxton owns shares of Starbucks. The Motley Fool recommends Starbucks. The Motley Fool owns shares of Starbucks Corporation (NASDAQ:SBUX). David 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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