Better Buy: Starbucks vs. Netflix
For investors with a long-term focus, owning high-quality companies is essential. Formed in 1985, Starbucks (NASDAQ: SBUX) is the premier retailer of specialty coffee in the world. Netflix (NASDAQ: NFLX) is the world's leading streaming service, with 183 million subscribers in over 190 countries.
While Starbucks stock is considerably lower year to date, Netflix has seen its stock skyrocket nearly 60% this year. Obviously these companies operate in completely different industries and have been affected by the coronavirus pandemic in varying ways, but I think investors would benefit from assessing both consumer names and deciding which direction to go. Let's take a look.
Revenues for Starbucks in the quarter ended March 29, 2020, fell 4.9% compared to the prior-year period. This is not surprising, given the temporary store closures, modified store operations, and slower traffic as a direct result of COVID-19. During this second quarter, Starbucks was forced to close 50% of its company-operated stores in the United States, as well as more than 75% in Canada, Japan, and the United Kingdom. While most locations are currently back up and running, a surge in new coronavirus cases has many worried that stores could close back up.
Source Fool.com
