RyanT

Starbucks: Will the Mermaid Mimic Ronald McDonald?

It's an interesting comparison to make against MCD, but I think there may be something else to consider as well: SBUX has brought back Shultz (the founder) in a turnaround role, and I expect quite a bit of reinvention to occur (especially in terms of appeal to American consumers, who don't see much of a difference between a Starbucks and a McDonalds). This could help drive sales in the US and may even create enough justification for some slight price increases.

In terms of growth, I agree that in the US they may be transitioning to "American staple", but I don't think so worldwide. SBUX has about half the total restaurants as McDonalds; in many countries overseas, consumer attitudes towards the brand are very positive (according to Shultz in the WSJ today, Romania and Spain saw it as a chic/hip place). So I think there's a lot of room for growth there.

Unless the "deeper recession" drags on SBUX more, I believe the bottoming out is already occurring.