Could McDonald’s be at risk of losing its crown? According to analyst Mark Kalinowski of Monura, coffee giant Starbucks could overtake the Golden Arches as the world’s most valuable restaurant company, Bloomberg reports.
Kalinowski named Starbucks Corp. his top stock Tuesday, Jan. 3, estimating the company will increase its global restaurant count by 8.4 percent in 2017 – to 50,000 locations – and boosting store sales by a whopping 5 percent.
“It is only a matter of time before Starbucks overtakes McDonald’s as the largest market cap restaurant stock, although likely not in 2017,” Kalinowski said.
Starbucks’ long-term goals aim for 37,000 cafes by 2021 – a big jump from last year’s goal of 25,000. There’s less competition in the beverage industry, and Starbucks recently introudced its high-end Reserve brand – a move Kalinowski said could make a cool $3 billion in sales.
When it reaches the 50,000-store level, which Kalinowski seems to see as only a matter of time, the company would overtake Subway Restaurants, the current world record-holder.