Starbucks’ Progress Problem Can Be Seen in Manhattan Espresso Glut – Bloomberg

It’s solely a joke that there’s a Starbucks on each nook.

However the proliferation of the cafes is hindering the corporate’s progress, in response to a current report from BMO Capital Markets. Andrew Strelzik, an analyst on the financial institution, downgraded Starbucks Corp. lately and lowered his worth goal on the inventory, arguing that the abundance of places within the U.S. signifies that shops are stealing gross sales from one another and weighing down the corporate’s outcomes.

Competitor Dunkin’ Donuts can also be affected by a saturated U.S. fast-food market, and just lately lowered its new-store goal. There are greater than 13,000 Starbucks cafes within the U.S., together with 240 in Manhattan. Dunkin has 161 places within the borough, although it has extra places than Starbucks in the entire of New York Metropolis.

The robust fast-food competitors within the U.S. has pushed Starbucks to more and more goal China as a key progress market.

Shares of the corporate have dropped four.four % this yr by way of Thursday. The inventory fell 7.5 % in 2016. Dunkin’ Manufacturers Group Inc. shares are roughly flat for 2017.

— With help by Matt Turner

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