Starbucks (NASDAQ:SBUX) recently announced several international expansion plans focused on China, India and Canada. Despite the massive run-up of its stock price last year, I think SBUX’s global expansion will be supportive of the company’s near-term growth outlook and that its ongoing investment in its asset light model and menu innovation will be accretive to its near-term revenue and EPS growth. Expansion in both China and India will greatly expand SBUX’s global footprint, while new product launches in North America and enhancement of digital services continue to differentiate SBUX from the competing QSRs. SBUX remains my top QSR pick for 2016.
In China, SBUX is doubling down on its investment in the country, with an additional 500 stores per year expansion plan for the next five years that will double the size of the 2,000 existing stores across 100 cities in the country.
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