Retail Question
Do you see a paralle between Starbucks and McDonald's a couple of years ago?
Answers
480 points
Creezy answered 2 months ago …
I guess in terms of overexpansion, but at the end of the day the McDonald's model was much easier to execute. They didn't have to maintain a "higher end" atmosphere at their locations and didn't risk losing their "culture" by getting too big. People expect McDonalds to be a little campy, but when Starbucks went down that route they started to lose sales. So I think the companies faced different challenges and it'll be much harder for Starbucks to turn its stock price around.
Any other thoughts from the TickerHounds out there?
2704 points
EthanR answered 2 months ago …
I agree with Creezy's answer. Both companies face the same problems- a slew of competitors and a need to continually reinvent themselves so as to stay fresh in a market that demands new things all the time.
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