Tuesday, July 31, 2018

Starbucks Has Seen the Future. It Looks Like a Drive-Through Window.


It’s been the big economic question of 2018: How much more room is there for growth before we hit supply bottlenecks and inflation becomes a concern? Starbucks, whose stock has struggled this year as they deal with saturation concerns of its own, brought us a little closer to an answer in its earnings conference call Thursday.

The company still sees opportunities for growth in the U.S., but increasingly not in the dense urban areas the company is known for. If Starbucks is any indication, one bottleneck has appeared, and economic growth may be largely tapped out in coastal markets for now. Whatever growth is left in this cycle will have to come from the central and southern U.S. . . . more