Will Starbucks (SBUX) Stock Be Helped By New Express-Style Stores?

NEW YORK (TheStreet) -- Starbucks Corp.  (SBUX)   plans to cater to busy commuters by launching smaller, express-style stores, the Wall Street Journal reports.

The new stores will have reduced beverage and food menus and will integrate the company's digital payment and mobile ordering systems to speed up service, the company said.

The coffeehouse chain is looking to capitalize on the strength of its drive-through stores, which make up about 40% of its U.S. company-operated stores and have higher sales growth than stores without drive-through service, the company said.

 

Starbucks also said it plans to open at least 100 new stores in the next five years dedicated to its Starbucks Reserve small-batch arabica coffee line, according to the Journal.

Shares of Starbucks are slightly lower in pre-market trade..

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 a number of 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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