There’s a Cheaper Buy Than Starbucks Corporation (SBUX) Today

Granted, Starbucks and Chipotle are both super-strong companies, and in my opinion, solid long-term holdings. I own shares of both in my personal portfolio, and have bought shares for the real-money Prosocial Portfolio I manage for Fool.com. Although I wouldn’t say buying either one today is a grievous mistake for long-term buy-and-hold investors — and there are far weaker companies out there that investors are snapping up at overblown prices — good things come to those who wait in investing, and quarterly euphoria is a fickle thing.

Right at this moment, of the three quick-serve concepts, Panera Bread Co (NASDAQ:PNRA) — the “cold” one — is the best buy, in my opinion. Like the other two, it’s also a very strong company keyed into consumer trends (and it’s also one of the stocks in the Prosocial Portfolio, incidentally).

This week, disappointment has laid Panera Bread Co (NASDAQ:PNRA) shares low, and anyone who felt they missed the boat can dig in now. Consider Chipotle: When near-term bearishness tore it down, investors should have seen opportunity instead of calamity. Those who bought at its 52-week low of $233 are happy campers right now.

Long-term shareholders can rejoice about the strength that Starbucks and Chipotle exhibit. I’m pretty pleased, myself. But when it comes to looking for a cheap stock idea today, Panera’s beaten-down price means it shouldn’t be dismissed to the back burner.

The article There’s a Cheaper Buy Than Starbucks Today originally appeared on Fool.com and is written by Alyce Lomax.

Alyce Lomax owns shares of Chipotle Mexican Grill and Starbucks. The Motley Fool recommends Chipotle Mexican Grill, Green Mountain Coffee Roasters, Panera Bread, and Starbucks. The Motley Fool owns shares of Chipotle Mexican Grill, Panera Bread, and Starbucks.

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