Starbucks Corp. announced plans late Monday to buy Bay Bread and its French-themed bakery brand La Boulange in a $100 million deal. The coffee giant agreed to pay cash for La Boulange, which operates 19 locations in the San Francisco Bay Area.
The coffee chain said in a statement that they purchased the brand in response to customer demand for more "wholesome and delicious" food options. Starbucks customers can expect to see more baguettes, rolls, cookies, and cakes, with plans to continue operating Bay Bread as a separate entity, while also providing some products in U.S. retail stores.
This latest acquisition comes off the coattails of Starbucks stock dropping nearly 17 percent in the last few weeks. But the purchase isn’t expected to have a vast impact on share value, as the purchase of the bakery and brand is expected to dilute earnings by $0.02 for the second half of this fiscal year.