Trenta (SBUX)

http://content.usatoday.com/communities/ondeadline/post/2010/03/starbucks-test-markets-the-31-ounce-trenta-for-iced-tea-or-coffee/1 Move over Venti. Starbucks is test marketing the Trenta – a 31-ounce serving of iced teas and iced coffee. Reuters says Starbucks’ announcement comes as some McDonald’s restaurants continue to offer a 32-ounce sweet tea for $1. The new 31-ounce Trenta is being tested in Phoenix and Tampa. The iced coffee version sells for $3.30 and the iced tea for $2.60. Starbucks says unsweetened Trenta drinks have fewer than 5 calories, while sweetened versions have less than 200 calories. There was no word of the potential impact on nerves. ************** I think SBUX is overvalued at the current multiple and don’t know how it will compete with MCD in iced drinks category on the price basis.