Key TakeawaysShares of Starbucks rose Tuesday as its striking baristas were expected to return to work on Wednesday. Its union has demanded a higher minimum wage and other concessions from the company.A Starbucks executive said most of its locations remained open during the striker, also calling the union's pay request "not sustainable." Shares of Starbucks (SBUX) finished Tuesday higher amid reports that its striking baristas would return to work. The union representing some Starbucks baristas had earlier ...

Key TakeawaysThe strike by some Starbucks baristas has expanded to 300 stores in the U.S., according to the union representing them.The union is demanding a higher minimum wage and other concessions from the company.A Starbucks executive said a vast majority of its locations remained open, and the union's pay request is "not sustainable." The union representing some Starbucks (SBUX) baristas announced that workers in 300 stores in the U.S. are now taking part in a strike against the biggest coffee chain. St ...

A strike by Starbucks baristas is expanding, their union said.The strike is due to expand to more than 300 locations on Tuesday, it said.The union wants better pay and said Starbucks had not settled many unfair labor practice cases.A strike by Starbucks workers will expand to more than 300 locations on Tuesday, a union that represents the company's baristas said.Advertisement Starbucks Workers United said on Monday that walkouts by workers would reach new locations like Atlanta and Buffalo, as well as othe ...

Starbucks workers have expanded their strike to more cities and closed 59 stores across the U.S. as of Monday, according to the union, which represents more than 10,000 baristas. The strike began Friday in Los Angeles, Chicago and Seattle, but has since spread to stores nationwide, including in Boston, Dallas, Portland, New York City, Denver, Pittsburgh, Philadelphia and St. Louis."We respect our partners’ right to engage in lawful strike activity, and we appreciate the thousands of partners across the coun ...

Core Viewpoint - Dutch Bros is positioning itself as a potential competitor to Starbucks, focusing on a different business model that emphasizes drive-thru service and lower prices, while exploring growth opportunities in food, online ordering, and expansion [2][3][15] Company Comparison - Starbucks has achieved over 10,000% return since its IPO in 1995, setting a high benchmark for coffee stocks [1] - Dutch Bros, which went public in September 2021, aims to replicate this success but operates with a distinct model that does not include indoor seating [2][4] Business Model - Dutch Bros primarily utilizes drive-thru locations, with most stores ranging from 800 to 1,000 square feet, and older stores around 500 square feet [5] - The company’s beverage sales composition includes approximately 50% coffee-based drinks, 25% proprietary energy drinks, and 16% hot coffee, indicating a shift towards cold beverages [6] Growth Opportunities - Food sales currently account for only 2% of Dutch Bros' revenue, compared to 23% for Starbucks, suggesting significant room for growth in this area [7] - Online ordering presents another growth avenue, as it has been a key driver in the quick-service restaurant industry [8] Expansion Potential - Dutch Bros plans to expand from 950 locations to approximately 4,000 over the next 10 to 15 years, highlighting a substantial growth trajectory compared to Starbucks' 18,424 locations [9] - The company’s smaller store sizes and solid free cash flow facilitate new store development, with an average unit volume of about $2 million per store [10] Valuation Insights - Dutch Bros currently trades at a price-to-sales (P/S) ratio of 4.3, while Starbucks trades at 2.8, indicating a relatively high valuation for Dutch Bros [14] - Historical context shows that Starbucks also traded at high P/S ratios during its early growth phases, suggesting potential for Dutch Bros as it scales [14] Long-term Outlook - While Dutch Bros has promising growth opportunities, it may not generate the same life-changing returns as Starbucks, positioning it as a good potential buy but not necessarily a generational investment [13][15]

Core Viewpoint - Starbucks is experiencing a decline in stock performance and earnings estimates, indicating potential challenges ahead for the company. Financial Performance - Starbucks closed at $87.44, reflecting a -0.6% change from the previous session, underperforming the S&P 500's gain of 0.73% [1] - Full-year earnings estimates are projected at $3.11 per share, representing a year-over-year decline of -6.04%, while revenue is expected to be $37.33 billion, showing a growth of +3.18% [2] - Anticipated earnings per share (EPS) for the upcoming release is $0.66, a decrease of 26.67% compared to the same quarter last year, with quarterly revenue expected to be $9.33 billion, down 1% from the previous year [4] Valuation Metrics - Starbucks has a Forward P/E ratio of 28.28, which is higher than the industry average of 24.91, indicating that Starbucks is trading at a premium [3] - The company holds a PEG ratio of 2.58, compared to the industry average PEG ratio of 2.28, suggesting a higher valuation relative to its projected earnings growth [6] Stock Performance - The stock has decreased by 14.18% over the past month, underperforming the Retail-Wholesale sector's gain of 3.93% and the S&P 500's gain of 0.34% [8] Analyst Sentiment - Recent changes in analyst estimates for Starbucks indicate a shifting business landscape, with positive revisions suggesting a favorable outlook on the company's health and profitability [9] - The Zacks Rank for Starbucks is currently 5 (Strong Sell), with a consensus EPS projection that has moved 0.25% lower in the past 30 days [10]

Starbucks workers have expanded their strike to four more US cities, including New York, the union representing over 10,000 baristas said late on Saturday.The five-day strike, which began on Friday and initially closed Starbucks cafes in Los Angeles, Chicago and Seattle, has added locations in New Jersey, New York, Philadelphia and St. Louis, Workers United said in a statement. It did not specify in what New Jersey city the walkout was occurring.Starbucks said the disruptions from the strike have no signifi ...

Core Viewpoint - The article discusses Starbucks' current challenges and opportunities, emphasizing the importance of same-store sales growth and the company's strategic efforts to improve its brand and operational efficiency while navigating macroeconomic headwinds, particularly in China. Group 1: Revenue Growth and Financial Performance - Not all revenue growth is equal; same-store sales growth is the most indicative of product strength [1] - Starbucks has experienced a decline in same-store sales, with a 7% drop leading to an overall revenue decrease of 3% despite opening 722 new stores [11][10] - The company has raised its quarterly dividend to $0.61 per share, marking the 14th consecutive year of increases, with a compound annual growth rate of around 20% [12] Group 2: Strategic Initiatives and Management Changes - New CEO Brian Niccol is implementing strategies to return Starbucks to its roots, focusing on enhancing the customer experience and operational efficiency [6][16] - The Siren Craft System aims to improve order processing and customer experience, which could help boost margins [9] - Niccol's leadership change was positively received, with the stock gaining nearly 25% following the announcement [15] Group 3: Market Position and Valuation - Starbucks is viewed as a great value in a relatively expensive market, with its P/E and P/S ratios below their 10-year medians [3] - The stock has underperformed compared to the S&P 500, with only a 4.4% increase over the past five years [22] - The dividend yield of 2.7% is significantly higher than the S&P 500's yield of 1.2%, providing an incentive for investors to hold the stock during the turnaround [24] Group 4: Challenges in Key Markets - Starbucks is facing difficulties in China, with three consecutive quarters of year-over-year declines in same-store sales [10] - The Chinese economy's struggles with discretionary spending are impacting Starbucks' performance in the region [23] - The company aims to increase its store count in China, which has not yet surpassed the number of locations in the U.S. [19]

Starbucks is responding as some of its union workers took to picket lines Friday after Starbucks Workers United (SBWU) baristas voted to authorize a strike earlier this week.According to the coffee chain, the union is seeking pay hikes that are “not sustainable.”“Workers United proposals call for an immediate increase in the minimum wage of hourly partners by 64% and by 77% over the life of a three-year contract,” Starbucks said in a statement. “This is not sustainable.”According to Starbucks, the average p ...

Key TakeawaysUnionized Starbucks baristas in Chicago, Los Angeles, and Seattle have gone on strike in a pay dispute with the giant coffee retailer.Starbucks Workers United said the walkouts would expand throughout the country and run until Christmas Eve.The company argued the union has made unrealistic demands, and said the strike has had little impact on its operations. Starbucks' (SBUX) unionized baristas in Chicago, Los Angeles, and Seattle have walked off the job in a pay dispute, with the union represe ...