Starbucks (SBUX) Brings Holiday Drink and Gift Card Options - Analyst Blog

Starbucks Corporation (SBUX) recently launched new holiday beverage choices, Starbucks Dot collection of drinkware and the first ever uniquely designed Starbucks Card collection just in time to kick off the holiday season.

Starbucks is launching its first holiday handcrafted beverage in five years — Chestnut Praline Latte — a blend of espresso and milk flavored with caramelized chestnuts and spices, across the nation. The new beverage will boost Starbucks' winter holiday drinks menu which includes Caramel Brulée Latte and Peppermint Mocha beverages.

The holiday menu will also feature festive cookies and cakes in addition to the newly launched turkey and stuffed panini sandwich.

The Dot drinkware collection features items with 100 unique designs and are packaged in a festive red box. These items, priced under $20, are apt for personal gifting.

The Starbucks Card Collection includes more than 100 different gift card designs. Moreover, Starbucks is offering a limited edition silver premium gift card made with sterling silver and engraved with the Starbucks logo. The card is preloaded with $50 and priced at $200 and will only be available at select Starbucks stores for a limited time.

Last year, in the holiday season, Starbucks witnessed lower in-store foot traffic due to significant growth in online shopping. The National Retail Federation has predicted online holiday sales to grow within 8–11% this year. To capitalize on this changing shopping behavior this holiday season, Starbucks is improving the online experience to complement its in-store experience. The Starbucks Dot collection will be available online in addition to the artwork inspired by the collection as well as premium coffee subscriptions at attractive discounts.

Other Stocks to Consider

Starbucks carries a Zacks Rank #3 (Hold). A better-ranked stock in the retail-restaurant sector is Papa John's International, Inc. (PZZA) carrying a Zacks Rank #2 (Buy). Other stocks worth mentioning in the broader retail sector include L Brands, Inc. (LB) and GameStop Corp. (GME). Both the companies carry a Zacks Rank #2.