Last week marked the 25th Anniversary of coffee giant Starbucks (NASDAQ:SBUX). But, instead of celebrating during the week, the company got to work with a number of high-profile expansion initiatives.
First, Starbucks got the markets buzzing earlier this week with the announcement that it is buying La Boulange, a Bay area-based French bakery chain, for $100 million. With this acquisition, Starbucks will add the chain’s 19 West Coast locations and boost its offering of bakery items at Starbucks locations.
In other news, the company will also start selling Keurig coffee pods in its coffeehouses next week. The patent for the K-Cup, which was originally exclusively owned by Green Mountain Coffee Roasters (NASDAQ:GMCR) expires this summer, so Starbucks is using this as an opportunity to get in on the rapidly growing single-serving market.
Additionally, management has plans to unveil its own single-serve coffee machine this fall, which will stand apart from the Keurig by being able to make the company’s famous espressos.
Finally, as if these developments were not enough, Starbucks entered into an agreement with Coinstar (NASDAQ:CSTR) to offer Seattle’s Best coffee, owned by Starbucks through thousands of coffee dispensing kiosks.
All of these developments make me even more excited for Starbucks’ profit potential. That being said, I recommend that you pick up shares of this Conservative stock.