Better Buy: Starbucks vs. Costco
Starbucks (NASDAQ: SBUX) and Costco Wholesale (NASDAQ: COST) both withstood the S&P 500's 14% decline over the past 12 months. Starbucks' stock rose 7%, while Costco experienced a mild decline of 4%. Let's see why these two S&P 500 companies outperformed so many of their peers -- and if one is a more promising investment right now.
At first glance, Starbucks might seem like a risky investment. The coffee chain is heavily exposed to inflation, which drives up its costs and curbs the market's appetite for its pricey beverages. And the COVID-19 lockdowns in China affected its second-largest market after the United States.
Starbucks also faces unionization demands in the U.S., while founder Howard Schultz -- who returned as its interim CEO last year -- is in the process of handing the reins to its new CEO, Laxman Narasimhan.
Source Fool.com
