No food chain has grown as fast as Starbucks, and it shows no signs of slowing. Under CEO James Donald, it plans to boost earnings by 20% to 25% annually over the next three to five years and to bring its number of storefronts to 40,000 worldwide—10,000 more than McDonald’s. Starbucks is conservative in how it finances its goals: Operating cash flow from existing stores pays for new-store development. So far, the return on new stores has been excellent. Increasing same-store sales has been a tougher order, though, and Chairman Howard Schultz has expressed worries that moves to improve same-store sales with automatic equipment and off-brand merchandise could be turning consumers off.
|Sales Growth Rate**|
|12-Month Net Income||
|Total Return||Past 12 Months|
|Past 36 Months
|Economic Sector||Consumer Discretionary|