What Meet Kevin said in this video:
- SBUXneutralThe host views SBUX's exploration of a takeover of CMG as a stupid act of desperation; SBUX has no money and is broke, with revenues down 1.4% year-over-year, though operating expenses are down nearly 2%, indicating efficiency efforts and stabilization, but it failed in China and has a disposal group, and its business is mature.Source
- CMGneutralThe host notes that CMG's numbers are better, with 9.3% growth, but operating expenses are up 12.7%, causing net income to fall; CMG's growth is maxed out with saturated store presence, and like SBUX it is in a mature phase, with no clear directional view given.Source
- OtherneutralThe host views both SBUX and CMG as being in a very mature phase of the business cycle, with both companies having grown a lot and their markets becoming saturated.Source