Why Starbucks (SBUX) Stock Is Up Today

NEW YORK (TheStreet) -- Starbucks (SBUX) is gaining 2.1%to $73.49 Tuesday on news that it will open a La Boulange dinner restaurant in Los Angeles.

According to Bloomberg, the restaurant will carry the brand name of the San Francisco chain La Boulange Bakery. While the bakeries close at 7 p.m., however, the restaurant will serve dinner until 10 p.m. The menu will contain many of the bakery's items include sandwiches, sandwiches, and omelets, and will add other options including croissant burgers, cocktails, beer, and wine.

The restaurant will compete with Starbucks competitors Panera (PNRA), as well as Yum! (YUM), which recently started testing upscale versions of KFC and Taco Bell to take advantage of the "fast-casual" trend.

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TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by some important positives, 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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