Dunkin Donuts Vs Starbucks Essay

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The purpose of this report is to analyze two companies in the coffee industry that could be our potential investment. Starbucks and Dunkin’ Donuts are the companies that many foresee as good profitable companies that can give us the necessary return on investments.

Investments must be made after carefully researching each potential investment. Different factors that may lead us to a better deal. One must look at the industry, and the coffee industry is, in fact, the second largest commodity in the world. Meaning it’s a great industry, but it comes with many risks. The companies in this sector to be considered for investment should have a good foothold in the industry, must be profitable, good market position, can compete, and have a good …show more content…

Their store in the beginning years only sold coffee to restaurants and bars. The stores that are now known to sell to consumers started in 1987 when Howards Schultz acquired the assets and along with investors set up Starbuck Corporation. He was inspired by cafes in Italy and mimicked them here in the U.S. As time passed, Starbucks expanded more and more, they now have over 24,000 stores in more than 75 countries. They now offer a large range of products that include; coffee beans, specialty beverages, fresh foods, and all types of merchandise (“Starbucks Company,” …show more content…

Different analysts display their opinions on the matter, Starbucks is a company that offers a dividend, and according to strategist R.J. Hottovy, they believe Starbucks can sustain a dividend payout over the next decade. Although they warn of the risk that because there are no switching costs, consumers can trade this brand for another alternative (Hottovy, 2017). Though the expansion plan of Starbuck Corporation is ambitious, because of their goals to open Roastery locations and Reserve stores, by 2021. This may be grand, but it is believed that Starbucks will be able to keep evolving for consumer

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