Is Starbucks' Valuation Too Hot to Handle?

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a Fool reader who asks: " What's your Foolish take on Starbucks ? What about their breathtaking P/E? How about Realty Income ?" Jason talks about the number of growth opportunities that Starbucks still has today from the acquisitions of Evolution Fresh, La Boulange, and Teavana to the addition of drive-thrus in its new stores. Further, Jason clarifies why Starbucks has such a high P/E ratio today and how investors should view the company. While Realty Income is a REIT that can generate higher dividend income, Jason also says why he's not sold on the long-term prospects of the company today.

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Jason Moser owns shares of Starbucks. The Motley Fool recommends and owns shares of 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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