3 contenders for the next Starbucks

Can these companies match the coffee chain's explosive growth?

By Charley Blaine Nov 27, 2012 2:48PM
Image, Coffee copyright Foodcollection RF, Getty Images, Getty ImagesEveryone laments the stock that got away. Like Starbucks (SBUX).

If you had invested $1,000 in Starbucks' initial public offering in June 1992, your stake would be worth around $6.4 million today -- and that doesn't include dividends.

Starbucks generated those astounding returns with a savvy recognition that people wanted a place to gather that wasn't home and wasn't the office. It was a third place. The neighborhood cafe, like you see all over Europe. Or the friendly cafe in the lobby of your office building.

The idea took off and became a national and then an international phenomenon. Then, the company found that Starbucks coffee stands worked at the train station or the airport.

Starbucks shares dropped 80% during the financial crash. It was horrible to experience, but the slump offered a once-in-a-lifetime shot at riding the Starbucks wave. Former CEO Howard Schultz took the reins back, closed stores and cut costs and staff. In 2009, the recovery began. Big time. And the stock took off again.

Starbucks is a unique franchise, but there are other companies that have developed profitable niches that also have the potential to make investors happy in the next few years.

Columnist Charley Blaine discusses Panera Bread (PNRA), Caribou Coffee (CBOU) and Dunkin' Brands (DNKN) here.
Dec 6, 2012 6:03AM
While I would have agreed with the Caribou suggestion at one point in time, I would have to pass for now. They have closed a handful of stores in the Chicago market, two of which that I know personally were doing fair enough, with little or no notice to both the consumer or the employees.

While I feel they have a better tasting coffee, I am not sure I would support a company with these  business practices.

Dunkin Donuts on the other hand is a great brand but have been a bit and down the last few years... not sure about that either.

Nov 27, 2012 6:06PM

"WASHINGTON (Reuters) - Major tobacco companies must take out advertisements saying they deliberately deceived the U.S. public about the danger and addictiveness of cigarettes, a federal judge ruled on Tuesday. The ruling in the U.S. District Court for the District of Columbia aims to finalize the wording of the advertisements that the judge first ordered in 2006 after finding the companies violated federal racketeering law. Tobacco companies fought a public admission of deception, calling it a violation of their free speech rights."

I am HORRIFIED at the idea that some Free Speech Rights were violated. Stuff enough tobacco down the throats of these bastards and light it. Make them inhale until they pass out then lock them in a room with perpetual second hand smoke filtering in. People died terrible deaths from cigarettes. Make sure every marketing person who made a living pumping death to the public goes down for this.

Nov 27, 2012 5:54PM
Today was another day that shows how news do not move markets, like we always say...People do...We opened up with decent news for a change, you would thing the market would go up...Not exactly, not when the volume is low and manipulators outnumber everyone....The big call to sell off came at about 1420 hrs or so and that's all she wrote...And believe us, profit taking had very little to do with this drop...Oh well, lets see what tomorrow brings us.
Nov 27, 2012 4:41PM

Well your choices do have me more interested........Charley

But I've looked at Dunkin...more them once..


AND I MISS...Your "Latest Dispatches" at "MARKET WATCH"...What's the problem ??

Nov 27, 2012 4:01PM

I bet you do.....Try a little Whiskey(good) and Latte or Delight or Nestle's mix...


It will warm your cockels....

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