Buying quality is always in style, but in the wake of Starbucks (NASDAQ: SBUX) stock's 15% decline over the last two months, the coffee giant looks even more worthy of serious consideration by investors. Whether one is looking for a way to supplement retirement income or looking for some portfolio growth in uncertain times makes no difference.
As a restaurant chain, Starbucks is sensitive to consumer discretionary spending, so it certainly wouldn't be immune to a severe economic slowdown -- and signs that such an event is imminent have dominated headlines as of late. (Indeed, recession fears are likely part of the reason for this share price drop.) However, over the long term, Starbucks has a clear path for continued growth.
Though its brand is already well-entrenched in the American psyche, Starbucks has continued to grow in the U.S. through new store openings, investments in digital tools like its order-and-pay loyalty app, and menu experimentation. Also benefiting it is the trend toward more eating on the go; in fact, according to U.S. Census Bureau data, this year, spending at restaurants is set to exceed spending at grocery stores for the first time ever.