The Biggest Reason Starbucks Is Fighting McDonald's


Just when there seems to be a Starbucks on every corner, the Seattle-based company has decided to launch 15 Seattle's Best drive-thrus across the U.S., starting in Dallas.

But why now? Expectations for Starbucks are high. In addition, the company currently trades for a P/E of 31, and the China opportunity may not be enough to satiate investors.

Get the scoop on why Starbucks launched these drive-thrus and catapulted itself into competition with McDonald's and Panera Bread .

After making investors rich in 2011 with an improving Dollar Menu and McCafe expansion, McDonald's has been one of the worst-performing blue-chip stocks of 2012. Our top analyst on the company will tell you whether you should be worried by this trend and shed light on whether McDonald's is a buy at today's prices. Click here now to read our premium research report on the company.

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Fool contributor Kevin Chen owns shares of Panera Bread. The Motley Fool recommends and owns shares of McDonald's, Panera Bread, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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