Uh-Oh, or Oh Boy? Dutch Bros. Is Chipping Away at Starbucks' Dominance
Given ' (NASDAQ: SBUX) disappointing fiscal second-quarter results, it would be easy to presume the worst for the entire prepared-beverage business. The coffeehouse chain's overall revenue for the recently ended quarter was down 2% year over year, while same-store sales slumped 4%. Total comparable transactions were down 6%. All these numbers fell short of estimates.
Be careful of drawing broad conclusions based on one company's numbers, though. Consumers are still drinking plenty of coffee (as well as the other beverages Starbucks offers). They're just buying them elsewhere. Rivals like up-and-comer Dutch Bros. (NYSE: BROS) and established chains like Dunkin' Donuts are as busy as they've ever been.
The underlying dynamic is one that current or prospective shareholders of either outfit will want to understand, since it could remain in place for a while.
Source Fool.com
Starbucks Corp. Stock
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