Starbucks a China Star
In areas such as Shanghai, teahouses are a more common (and also more traditional) alternative to coffeehouses. They're cheaper than Starbucks, they also sell beer and soft drinks, and they're happy to let customers smoke -- unlike Starbucks, says French.
However it fares, China has become strategically important enough to Starbucks that the company cited potential stumbles there among the risk factors in its 2005 annual report. Those risks include deterioration in U.S.-China relations, legal uncertainties and intellectual-property ripoffs. (Earlier this year, Starbucks won a lawsuit against a Shanghai coffee company that was using the Chinese version of Starbucks' name and a similar logo).
Starbucks has refused to say how many stores it plans to open in China. But in October, CEO Jim Donald said the company has raised its long-term store target to 40,000 locations around the world, up from its earlier goal of 30,000.
About 10,000 of those new stores will be in Asia. And with China being billed as the next big market for Starbucks, expect it to get a lot easier to find a cup of coffee in the Middle Kingdom.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV