Core Viewpoint - Starbucks workers are striking at over 65 stores in more than 40 cities due to failed collective bargaining negotiations, coinciding with Red Cup Day, a significant day for the company during the holiday season [1] Group 1: Strike Details - The strike involves more than a thousand workers and could potentially become the longest in the company's history if a fair contract is not reached [1] - The union, Workers United, represents less than 4% of Starbucks' workforce, which consists of approximately 17,000 locations [1][2] Group 2: Company Response - Starbucks claims that past strikes have affected less than 1% of its stores, and the majority remain operational [1] - The company expresses disappointment over the strike call and emphasizes its willingness to negotiate when the union is ready to return to the bargaining table [1]

Core Insights - Starbucks Corp. reported disappointing quarterly results, leading to initial stock rally followed by a sell-off, indicating underlying issues with performance under new CEO Brian Niccol [1] Financial Performance - Same-store sales remained flat in the U.S., which is a decline compared to the previous year's drop [2] - Earnings per share plummeted from $0.80 to $0.12, while revenue increased by 5% to $9.57 billion [3] - Starbucks closed 627 stores, predominantly in North America, bringing the global total to 40,990 [3] Strategic Initiatives - CEO Niccol implemented several changes, including standardizing U.S. uniforms, reducing white-collar staff, and streamlining the menu to enhance service speed, though the effectiveness of these measures is unproven [4] - Niccol emphasized the "Back to Starbucks" strategy, claiming progress, yet flat U.S. comparable sales do not reflect a turnaround [5] Market Reaction - The stock price has decreased by 14% over the past year, contrasting with an 18% increase in the broader market, indicating a lack of confidence in Niccol's vision and results [5]