Starbucks Could Get an Edge Over Dunkin’ Donuts With Leases
- Cutting share of owned stores may offset stagnant sales
- Retail vacancies could pull rents down, fattening margins
Photographer: Daniel Acker/Bloomberg
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Starbucks has sought every means to fuel its growth while fending off smaller, lower-cost rivals like Dunkin’ Donuts. And a push to lease stores, rather than own them, may be part of the answer.
The two companies have vied for foot traffic to maintain same-store sales growth, which for Starbucks Corp. is at its lowest level since 2009. But given Dunkin’ Brands Group Inc.’s advantage in real gross margin growth since 2016 -- and in return on assets going back even earlier -- Starbucks could use an advantage that Dunkin’ can’t mimic.