Starbucks' traffic slows

Transactions at the coffee chain pulled back a bit this quarter. Here's why this Motley Fool analyst couldn't be less concerned.

By Motley Fool Investor Beat Jan 24, 2014 3:39PM
Shares of Starbucks (SBUX) were up Friday on solid earnings news, but one number that stood out was the company's reduced traffic.

While any business with stores or restaurants needs to keep traffic high and growing in order to succeed, Motley Fool One analyst Jason Moser tells investors in this video why he couldn't be less worried.

He notes that Starbucks offers so many things to its consumers, not just coffee but also food and tea that people love and rely on, and points to another time in 2012 when traffic for the company fell a bit.
So is Starbucks a buy today? Jason certainly thinks so.

With enormous growth opportunities still ahead for the company in developing markets such as India and China, an excellent leadership team and so many more ways for it to connect with consumers in the future, he sees this as the perfect long term buy-and-hold.A Starbucks Corp., sign is displayed outside a coffee shop in London, U.K. / Chris Ratcliffe/Bloomberg via Getty Images

He highlights the levers the company pulled at that time to stoke traffic levels back upward and how successful that was, and discusses some tools in Starbucks' arsenal that he thinks will easily be successful this time.

Also, the company saw $1.4 billion loaded onto Starbucks rewards cards this quarter, which is money paid to the company today for the promise of coffee tomorrow, something that Jason sees as extremely powerful.

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