Monday, March 5, 2018

Starbucks' Renting Ways Offer Possible Edge Over Dunkin' Donuts

NREI Online

Starbucks has sought every means to fuel its growth while fending off smaller, lower-cost rivals like Dunkin’ Donuts. And a push to lease stores, rather than own them, may be part of the answer.

The two companies have vied for foot traffic to maintain same-store sales growth, which for Starbucks Corp. is at its lowest level since 2009. But given Dunkin’ Brands Group Inc.’s advantage in real gross margin growth since 2016 -- and in return on assets going back even earlier -- Starbucks could use an advantage that Dunkin’ can’t mimic.. . . more