Starbucks Corporation SBUX recently introduced a new line of cold beverages, following the company’s successful launch of Cold Brew last year.
The new cold bar menu includes several new cold coffees and espresso products, including Cold Brew, Cold Brew with Vanilla Sweet Cream, Caramel Iced Macchiato, handcrafted Starbucks Doubleshot on Ice espresso beverage and Nitro Cold Brew.
Cold Brew is a handcrafted balanced and smooth coffee, featuring hints of citrus and chocolate. Made from carefully selected beans, cold brew is steeped or soaked for 20 hours.
Cold Brew with Vanilla Sweet Cream features Cold Brew with a float of house made vanilla sweet cream on top.
Nitro Cold Brew infuses Cold Brew with nitrogen to create an impressive look and taste. Nitro Cold Brew will be made available in major cities in the U.S, including Seattle, Portland, New York, Chicago, Boston, Los Angeles, and San Francisco.
Starbucks Doubleshot on ice is a full bodied espresso, chilled and mellowed with milk and light sweetening.
Caramel Iced Macchiato is another full bodied espresso with vanilla-flavored syrup, milk and ice, and finished off with caramel drizzle. Other than these chilled exotic beverages, the menu also includes traditional Iced coffee. The introduction of the new menu is perfectly timed for the summer season and should further strengthen the company’s top line.
Starbucks is strengthening its product portfolio with significant innovation around beverages. Beverage innovations have been a significant contributor to Starbucks’ comps growth over the years. The company is also looking to capture the growing multi-billion dollar cold coffee market. Starbucks cold beverages already enjoy strong demand, and Starbucks expects the cold coffee category to double in the next three years. The new menu will help the company capitalize on this increasing demand for cold beverages.
Zacks Rank and Stocks to Consider
Starbucks has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the restaurant sector include Famous Dave's of America Inc. DAVE, Restaurant Brands International Inc. QSR and Carrols Restaurant Group, Inc. TAST, with a Zacks Rank #1 (Strong Buy).
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