The season of giving has past, but the season of predictions is upon us.
2016 was not a wildly successful one for most brands, especially casual dining restaurant chains. This has influenced several of these chains to start a rebranding process.
With that being said, it's no surprise that the brands expected to performed well in 2017 are quick-serve and fast casual ones.
But, there is one brand in particular that Wall Street has high expectations for. Starbucks.
You are perhaps a bit sick of hearing about the success of this coffee chain, but financial experts are predicting that the Seattle-based company becomes the most valuable restaurant in the world in the not so distant future.
Although Starbuck's shares fell by 7.5% last year, investors are still impressed by the brand's consistent same-store sales, it's ability to offer customers convenient and innovative technologies, and its unit growth potential.
"Of the 33 analysts who cover the stock, 29 recommend buying it, according to Bloomberg. By contrast, 15 of the 35 analysts who track McDonald’s advise investors to buy into a stock that has rallied almost 30 per cent since Steve Easterbrook, chief executive, was appointed in early 2015, writes "Financial Times."
Starbucks still has a lot of catching up to do though with a $80bn market cap. While, McDonald's has the largest market cap among restaurant stocks with $98.7bn.
"However, if Starbucks can hit its goal of expanding its number of units by more than 8 per cent every year until 2021, it may be the first restaurant chain in decades to take the Golden Arches’ crown," writes "Financial Times."
Do you think Starbucks will eventually become the frontrunner? Or will McDonald's new rebrand help the brand stay at the top?