Why Starbucks Stock Is A Buy Now

person stacking five assorted-color Starbucks cups

Source: Unsplash 

Quarantine showed us what restaurant stocks are most resilient when push comes to shove. Starbucks Corp. (NASDAQ: SBUX) dominated the "fast-casual" world, adapting seamlessly to mobile ordering and touch-free service.

Starbucks stock rebounded almost instantly from the big market-wide drop in March. It's up 70% year over year.

But even as the pandemic winds down, these convenient delivery methods aren't going away. In fact, some companies got so good at it, they really don't need to bring diners back inside their restaurants. People enjoy the grab-and-go method of picking up their coffee.

That means any extra in-person diners will be the icing on the cake for Starbucks. They're coming. And that will continue driving Starbucks stock to new highs this year.

Here's why you should look into buying Starbucks stock today.

Starbucks Leads the "Great Reopening"

Money Morning's options trading specialist, Tom Gentile, is excited about the restaurant industry. He has several picks that performed well under quarantine and will continue to thrive when they open their doors.

For example, Chipotle Mexican Grill Inc. (NYSE: CMG) and Darden Restaurants Inc. (NYSE: DRI), parent of Olive Garden, each had their own steady journeys to all-time highs recently.

Neither of them can do the numbers quite like Starbucks, however.

Starbucks is the world's largest coffee house chain. It reached an all-time high of $111 in the past few days, nearly double where it was at the bottom of last year's bear market. That's a strong performance for a product that most people can make at home while wearing sweatpants.

Clearly, there is something more to Starbucks than just a fix of coffee in the morning.

People still leave their houses to pick up a Grande Mocha, even if they order it via the app on their phone. That's customer loyalty, and it is priceless to a company.

1 2
View single page >> |

Disclaimer: © 2021 MoneyShow.com, LLC. All Rights Reserved. 

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.