Starbucks Corporation (SBUX - Analyst Report) recently announced plans to expand the availability of its Clover brewing system which is currently installed in only 500 Starbucks stores. By the end of 2014, management aims to double the number of stores that will feature the brewing system.
The Clover brewing system allows brewing of individual cups of coffee right in front of the customer. The brewing system is especially used to brew Starbucks' upscale line of coffees– Starbucks Reserve. Starbucks Reserve coffees are some of the rarest and most exotic coffees and have been around since 2010. In the last three years, the coffee giant has introduced more than 40 different Starbucks Reserve coffees. These expensive coffees are only available for a limited period at select Starbucks stores. The expansion of the brewing system will also increase the availability of the Starbucks Reserve coffees.
The Clover brewing system was launched in 2007 and was available in three markets by 2008. The Clover brewing system and the Starbucks Reserve coffees are now available in 25 markets in the U.S. and 10 international markets, including Canada, the U.K., Japan, the Netherlands, Hong Kong, Kuwait, Poland, Russia, Thailand and Singapore.
Starbucks also makes a premium single-cup domestic coffee machine called Verismo which was launched in the fourth quarter of fiscal 2012. Green Mountain Coffee Roasters, Inc.’s high-end single-cup brewing system, Keurig, has also become increasingly popular.
Other Stocks to Consider
Starbucks carries a Zacks Rank #2 (Buy). Other restaurateurs such as Burger King Worldwide, Inc. and Cracker Barrel Old Country Store, Inc. (CBRL - Snapshot Report) are currently doing well and have a bright outlook. Both the stocks carry a Zacks Rank #2 (Buy).
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »