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The Zacks Analyst Blog Highlights: Starbucks, Dunkin' and McDonald's

Zacks Equity Research

For Immediate Release

Chicago, IL – August 13, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Starbucks SBUX, Dunkin’ DNKN and McDonald’s MCD.

Here are highlights from Monday’s Analyst Blog:

Coffee Stock Wars: Starbucks, McDonald’s, Dunkin’ & Upstarts

Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains and guest Madeleine Johnson dive into the world of coffee to see how the major publicly traded firms from Starbucks to Dunkin’ have performed. The episode also addresses some upstarts and the broader coffee market to see which companies appear best suited for long-term success.

Starbucks, Dunkin’, and McDonald’s are the most well-known public coffee companies in the U.S. All three have also seen their stock prices surge in 2019, with SBUX as the standout winner so far. On top of that, the three U.S. giants have all focused on digital expansion and delivery in recent years as everyone from Walmart and Target to Chipotle expand their offerings in the Amazon-obsessed retail age. The three chains all have deals with either or UberEats, and DNKN’s Beyond Meat BYND trial could be the start of a larger plant-based push.

The global coffee market is also in the midst of extremely low prices. In fact, the price of arabica, which is considered the premium variety of bean grown mainly in Brazil, fell 9% last month to $1 a pound. Back in May, arabica slipped to as low as $0.88 per pound. This was its cheapest price in over 10 years. The downturn in prices has helped larger coffee sellers, but hurt many famers, particularly in Central and South America.

Meanwhile, companies such as Nestlé S.A. NSRGY and The J. M. Smucker Company have expanded their in-home coffee reach. On top of that, Coca-Cola spent $5 billion to buy Costa Limited last summer in an effort to expand its growing non-soda portfolio. Investors should also pay attention to Chinese upstart Luckin Coffee Inc., which went public in May, along with many other smaller companies trying to grab their share of the global coffee market.

As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating wherever you listen to your podcasts. Interested investors can also check out Madeleine Johnson’s Income Investor portfolio.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.