Oversaturation Is the Story Now, But Premium Is the Future for Starbucks

In recent weeks a number of stories have appeared questioning whether Starbucks (NASDAQ: SBUX) has reached a saturation point in the United States.

Those concerns come after BMO Capital Markets issued a negative report on Starbucks saying the company may have limited expansion prospects in its home market. The study found that the average Starbucks location has 3.6 other Starbucks cafes within a one-mile radius.

What BMO is missing is that the coffee chain's U.S. growth won't be fueled by adding new locations. It's going to come from increasing same-store sales by adding premium products to its stores along with building out Reserve locations, and more Roasteries.

Source: Fool.com