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Starbucks Poised To Become The World's Biggest Restaurant Chain
By
Nell Casey
Published Jan 4, 2017
Modified Jan 4, 2017
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By
Nell Casey
Published Jan 4, 2017
Modified Jan 4, 2017
Share
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Humanity will soon be completely drowned by a Frappuccino syrup tsunami, with survivors clinging to Big Macs for flotation as the whipped cream swirls in whirlpools around us. Once the biggest restaurant chain in the world, McDonald's may soon be eclipsed by the green espresso giant, as Starbucks looks poised to reach its goal of 37,000 stores worldwide in the next five years, dwarfing the Golden Arches and its meagre 36,615.
Analyst Mark Kalinowski predicts to Fortune that Starbucks will become the world's largest chain, eventually boasting 50,000 coffee shops globally.
"We believe that it is only a matter of time before Starbucks overtakes McDonald’s as the largest market cap restaurant stock, although likely not in 2017," according to Kalinowski. From a financial standpoint, Starbucks would need to rival McDonald's over $98 billion worth; they're currently at $79 billion. Subway currently boasts the most locations of any fast food chain, but is worth significantly less than either Starbucks or McDonald's.
Last year, McDonald's closed hundreds of locations across the globe for the first time since the '70s. Kalinowski thinks the focus on beverages gives Starbucks an edge on food-driven chains like McDonald's, especially as consumers are turning to healthier food options that aren't made from yoga mats.
Even with a rocky year for the chain, they're making changes to move beyond coffee, like serving alcohol and tapping into the popular third wave coffee movement. Now there's no reason to leave Starbucks. Ever!
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mcdonald's
starbucks
Nell Casey
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