Starbucks on a path to overtake McDonald’s
This post is part of the On the Margin blog.
Mark Kalinowski, analyst with Nomura, this week named Starbucks Corp. his top stock pick for 2017.
But then Kalinowski went a step further, suggesting that Starbucks could soon overtake McDonald’s Corp. as the country’s most valuable restaurant chain.
Starbucks has an $81 billion market capitalization. McDonald’s has a $99 billion market cap. Kalinowski wrote that Starbucks’ consistent same-store sales performance and earnings potential, along with its unit growth, could help its earnings and stock price grow in 2017 and beyond.
Ultimately, he thinks investors will reward Starbucks with a valuation that