Forget Starbucks, This Growing Coffee Chain Is Ready To Explode: DNKN

I'll never forget my first visit to Starbucks (NYSE: SBUX). Many of my friends were talking enthusiastically about this fancy new coffee shop from Seattle that had just opened in the neighborhood. When I saw the prices and the strange names of the beverages, I nearly fainted in surprise. Heck, I could buy an entire meal at McDonald's (NYSE: MCD) for the price of one of Starbucks' drinks.


Not to mention, it had the nerve to name a small cup of coffee, "Tall." Strange words such as "Venti" and "Frappuccino" quickly became part of yuppie culture and then rapidly spread to all demographics, as Starbucks grew into the behemoth brand it is today.

Soon, paying up to $5 for a cup of coffee became acceptable. This fact alone proves the amazing marketing machine of Starbucks.
There is no doubt this company has become the undisputed king of coffee shops. But cracks are starting to show in its armor.

The bar has simply been set too high for this thriving brand. Despite the company's soaring profits, global expansion, aggressive acquisitions and immense popularity, it failed to meet fiscal first-quarter revenue expectations. During the 2013 fiscal first quarter (ended December 2012), Starbucks earned a little more than $432 million, with revenue of $3.8 billion, just short of the $3.85 billion analysts were expecting.  (more)

Please bookmark us