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McDonald’s Corporation (MCD), one of our Blue Chip Growth stocks, announced that they are adding a barista position to their restaurants as part of the increase and overhaul of its beverage lineup. The fast food leader is investing money to add a lineup of cappuccinos, lattés and other coffee and espresso based drinks to its menus. The company will also begin dedicating part of its counter space to automatic espresso machines so that customers can watch the drinks being made. This is very similar to the experience one would have in some of the more upscale coffee shops, such as Starbucks. McDonald’s officials said they expect the new drink options to add as much as $1 billion dollars of revenues in the New Year and more as the idea catches on and people begin noticing that McDonald’s is a hot stock to become involved with while they are investing in the stock market.

Although many think McDonalds is going after Starbucks that probably isn’t the case. As Janna Sampson, the co-chief investment officer at OakBrook Investments, told Reuters news, “If you want a half-caf, no whip sugar free raspberry latte you probably aren’t going to McDonalds. But you aren’t going to get that at Dunkin Donuts either. It’s a more direct hit to Dunkin Donuts business.” She expects that McDonalds will also take a lot of business from startup and late entries to the high end coffee field.

The beverage expansion will also include bottled drinks. Currently under consideration are Mountain Dew, Lipton Green Tea and Red Bull caffeine based energy drinks. McDonalds  also plans to offer a soda fountain with soda shots allowing customers to add flavors to their base coca-cola drinks. It is this type of innovative thinking, which includes expanded hours, new products and growing breakfast demand, that helped make McDonald’s (MCD) a growth stock leader for our Blue Chip Growth stock portfolio this year!

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