Although there are several specialty coffee players in the market today, one cannot ignore the extent of success and greatness that Starbucks has achieved over the last few years. Its growing coffee shop and chain of tea and sandwich restaurants now make it a dazzling investment idea. More Than Coffee The company's founder and CEO, Howard Schultz, managed to turn Starbucks into something we didn't really know we needed. until we have it. He has meticulously created a brand for the company that adds psychological value to its offerings. So when you buy a cup of coffee at Starbucks, you are buying an experience. The somewhat calm and not-so-rushed atmosphere, subdued ambiance, and friendly staff of Starbucks stores add a feel-good factor to your purchase. As a result, people are willing to pay more for coffee at Starbucks, even if McDonald's was running a promotion offering free coffee. High prices translate into higher margins for its investors. Quality with difference The key to its success lies not only in the quality of its products but also in the ability to differentiate itself from the competition. At Starbucks, quality has always been a priority. The company maintains strict quality control measures for sourcing the finest coffee beans, roasting processes as well as customer service and ancillary products. Additionally, differentiation is key to market control and Starbucks is arguably the most differentiated specialty coffee brand in the world. From the design of its cafes to the music played to the types of products offered, everything has a unique touch. InnovationStarbucks is one of the most innovative names in the industry. ...... middle of paper ...... per share for the fiscal third quarter and $2.59 to $2.67 per share for the current fiscal year. Furthermore, Starbucks could be expected to raise its expansion forecast for the year, given that it achieved almost a third of its annual target in the first quarter itself. In summary, Starbucks is a dominant coffee shop with huge potential ahead. With forward estimates or store targets at your fingertips, and backed by its quality premium products, constant innovation, international expansions and strong fundamentals, it certainly deserves a place in your portfolio. Additionally, the stock has corrected sharply lately, down over 14%, and with earnings due next week, it presents a strong buying opportunity. In my opinion, the company is expected to outperform the frontier market in both the short and long term. Recommended Trade: Long Starbucks at $70.40 and cover it with a put strike at $67.50 to $1.05.