The quote is a classic. From Reuters: "You can’t get much better profit than adding water to beans," McDonald’s USA President Don Thompson said at an investor conference last week.
Yes, and that means that competing with Starbucks (SBUX) is not terribly hard for McDonald’s (MCD). It already has 36,000 stores worldwide. The Specialty Coffee Association says that the market for premium coffees is now over $12 billion a year.
There is a theory that the premium coffee market is growing so fast that Starbuck’s will not be hurt by the competition. "It will expand the market rather than impact Starbucks," said Bob Goldin of restaurant research firm Technomic Inc.
Wrong. People can only drink so many cups of coffee a day.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
