Somebody forgot to tell Starbuck’s investors that the bull market is running out of steam. The company’s shares, which have doubled in the past two years, pushed to a new record on Wednesday, nearing $75. Why? It turns out that being a retailer of a product that people are addicted to is a pretty good business. In a climate that has been hostile to mass retailers, Starbuck’s continues to pull in customers without having to resort to discounting. The company’s higher-end consumers haven’t reacted to recent price increases by going elsewhere, and competition from cheaper java joints like Dunkin’ Donuts and McDonald’s doesn’t seem to be taking a bite out of sales.
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