Dunkin' Donuts Kicks Starbucks (SBUX) While It Is Down

Dunkin’ Donuts plans to double its US stores to 15,000 by 2020. The management at the inexpensive coffee shop chain must have a crystal ball or a very good psychic. Not many companies know their plans so far out.

Dunkin’ Donuts appears to think it can join the ranks of all the other companies trying to take business from Starbucks (SBUX). McDonald’s (MCD) has been at the top of that list, and now they won’t be so lonely.

According to Reuters, Dunkin’ "gets around 65 percent of sales from beverages. Over the last few years, it has added espressos, lattes and cappuccinos that cost roughly $1 less than at Starbucks."

At some point the market for coffee will become so crowded that retail chains will have to give away the java and hope to sell breakfast food to bring in revenue.

Douglas A. McIntyre