Better Buy: Starbucks vs. PepsiCo
Gourmet beverages may be the cheapest luxury around, but drink manufacturers suffered along with most of the economy over the past few months. Industry leaders such as Starbucks (NASDAQ: SBUX) and PepsiCo (NASDAQ: PEP) had huge sales declines at the beginning of lockdowns, but they're crawling out from under the mess. Let's see which company is the better stock to invest in.
Starbucks has taken coffee to the next level with its more than 32,000 global cafes. Sales and comps both score notch high growth numbers in a typical quarter, but they bottomed out at as low as a 65% decline during the company's third quarter.
There isn't any real competition for the coffee giant. Dunkin' Brands' Dunkin' Donuts stores, and McDonald's both sell coffee. But there isn't another retail chain anywhere the size of Starbucks that only focuses on beverages, and both Dunkin' and McDonald's trail behind Starbucks in sales.
Source Fool.com
