Profits brewing

Starbucks (Nasdaq: SBUX) has been a rapid grower for years, steadily expanding and often delivering double-digit earnings growth. However, steady weakening of its comps growth -- sales at stores open more than one year -- in the U.S. is viewed by some investors as proof that the best days are in the past, fueling a drop in its stock price.

While there’s reason to monitor Starbucks’ slowing growth in the U.S., savvy investors focusing on the bigger picture could do well buying now, because the growth likely isn’t over. The company is working to improve its ability to meet strong demand during the morning rush, is expanding the availability of cold beverages and is introducing its “mobile order and pay” app to all customers, not just those who are members of its Rewards program.

Starbucks still has a massive opportunity internationally, particularly in China. The store count there has more than doubled over the last three years, to 3,124 locations, and the company plans to grow that count to 5,000 by 2021. Its China market produced year-over-year comps growth of 7 percent last year, and an increase of 6 percent last quarter.

Starbucks stock is appealingly priced for long-term investors at recent levels, and its dividend, which recently yielded 2.1 percent, was hiked by 20 percent in November. (The Motley Fool owns shares of and has recommended Starbucks.)