Starbucks (SBUX) Hits 52-Week Low, While McDonald's (MCD) Hits High

A chart is worth a thousand words. Or, maybe more. Starbucks (SBUX) hit another 52-week lows today at $23.29, down 3%. McDonald’s (MCD), which delivered strong same-store sales, is up 1.6% to $59.59, a few pennies from its 52-week high.

McDonald’s said, once again, that it is winning with breakfast. It opens a lot of its restaurants at 5 AM. Some stay open all night. Wall St. can debate who has better premium coffee. But, if a Starbucks store is not open, it hardly matters.

The market may also be concerned that consumers will cut back, even on expensive coffee and treats, if the economy gets tight. That helps the Dunkin Donuts guys and MCD. It probably does not do much for Starbucks.

McDonald’s has kept investor interest by issuing monthly same-store sales and revenue numbers. Starbucks has gone dark. They only draw the picture once a quarter.

The market is talking, but SBUX is not listening.

Douglas A. McIntyre