On Tuesday, Starbucks announced it would introduce four new sandwiches to its breakfast menu, including ham and swiss, egg and cheddar, and turkey bacon, egg and cheddar.
Expanded breakfast offerings seems a natural fit for Starbucks given its high traffic flow in the morning hours. The offerings are also a healthier option than Taco Bell, with a calorie range between 230 and 500 calories.
Last week, Taco Bell announced the introduction of its breakfast line, which includes a waffle taco (eggs and sausage wrapped in a waffle shell with syrup dressing) and a crunchwrap (a burrito containing sausage, egg and a hash brown). Its breakfast products will be available as of March 27.
On the same day, the king of fast-food breakfast McDonald's (MCD) said it is currently considering extending its breakfast hours past 10:30 am, something which could prove a logistical nightmare given its pancakes and burgers would have to occupy the same limited kitchen space.
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TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."