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Starbucks Corporation (SBUX)

  • Thu, Jul. 16, 1:35 PM
    • Starbucks (SBUX +1%) says it will open 15 stores in urban communities with a lower level of average income communities by 2018.
    • The company says it's committed to hiring employees for each store from within the local neighborhood.
    | Thu, Jul. 16, 1:35 PM | 56 Comments
  • Tue, Jul. 14, 5:13 AM
    • South Africa's Taste Holdings, which recently licensed global pizza giant Domino's in the country, has signed an exclusive deal to bring Starbucks (NASDAQ:SBUX) to local shores from 2016.
    • "For the first time in sub-Saharan Africa, Starbucks will open full-format stores bringing the entire range of its food and beverages," Taste said in a statement.
    • The model follows one Starbucks has turned to for most of Europe, the Middle East and Africa, where it uses licensees to run all its stores.
    | Tue, Jul. 14, 5:13 AM | 5 Comments
  • Sat, Jul. 11, 12:36 PM
    • Chipotle (NYSE:CMG) has raised prices in the San Francisco area by an average of 10.5% to help offset higher wages the chain is paying out in the region.
    • The minimum wage in San Francisco increased to $12.25/hr in May after sitting at $10.74/hr. The double-digit rise in prices at San Francisco-area Chipotle outlets compared to only a 0.5% increase across the U.S. for the company.
    • Restaurant industry watchers are busy analyzing the impact of minimum wage hikes in San Francisco, Los Angeles ($15), Seattle ($15), and other cities along with the proposed hikes in 29 states (DOL list). The ability to pass off some of the wage burden is crucial with restaurants generating a good portion of their sales growth through higher average guest spending, instead of bustling traffic.
    • What to watch: Though wage pressure is a factor for almost all companies in the restaurant sector, analysts note price elasticity varies widely by chain. Chipotle, Starbucks (NASDAQ:SBUX), Domino's Pizza (NYSE:DPZ) are expected to continue to ease past price hikes without a high correlation on demand, while smaller chains or privately-owned restaurants could be hit the hardest. Dine-in chains like Denny's (NASDAQ:DENN), Red Robin Gourmet Burgers (NASDAQ:RRGB), and IHOP (NYSE:DIN) are also expected to feel a pinch.
    • Burger watch: The rise of competition in the hamburger segment impacts price elasticity negatively for players like Shake Shake (NYSE:SHAK), Habit Restaurants (NASDAQ:HABT), Sonic (NASDAQ:SONC), Burger King (NYSE:QSR), Jack in the Box (NASDAQ:JACK) and Wendy's (NASDAQ:WEN) - while at the top of the heap the timing is tricky for McDonald's (NYSE:MCD) to become too aggressive with price increases amid its turnaround charge.
    • Previously: Higher guest spending boosts restaurants in Q2 (July 10)
    | Sat, Jul. 11, 12:36 PM | 26 Comments
  • Fri, Jul. 10, 2:08 PM
    | Fri, Jul. 10, 2:08 PM | 11 Comments
  • Thu, Jul. 9, 12:15 PM
    | Thu, Jul. 9, 12:15 PM | 41 Comments
  • Mon, Jul. 6, 2:14 PM
    • Keurig Green Mountain (GMCR -3.6%) is slammed after SunTrust cut its stock price target to $70 from $95, citing a loss of market share to the likes of Kraft Heinz (KHC), JM Smucker (NYSE:SJM) and Starbuck (NASDAQ:SBUX).
    • The firm thinks GMCR will need to address share losses for its company-owned brands sooner rather than later, which will pressure earnings; market share for GMCR-owned brands have dropped to 28% from 35% over the past year and posted a 5% sales decline and 12% volume decline in the most recent four-week period, according to Nielsen, lost to GMCR’s licensed partners which have stronger brands and are promoting their products more than GMCR.
    • SunTrust says it does not believe GMCR wants simply to be a contract manufacturer for the industry; GMCR will need to step up promotions in the coming months while working through its higher-cost coffee hedges, which the firm cites as the key reason behind its FY 2015 earnings reduction.
    | Mon, Jul. 6, 2:14 PM | 5 Comments
  • Mon, Jul. 6, 2:02 PM
    • Starting tomorrow, Starbucks (SBUX -0.4%) will hike prices for small and large brewed coffees by $0.10 in most parts of the U.S. That will bring the price of a large coffee to $2.45 in most U.S. stores.
    • Prices for certain other drinks will also rise, with the increases generally ranging from $0.05-$0.20. The action comes as J.M. Smucker and others cut prices for coffee products in response to lower coffee futures.
    • Starbucks carried out similar price hikes in June 2014.
    | Mon, Jul. 6, 2:02 PM | 35 Comments
  • Wed, Jul. 1, 8:21 AM
    • J.M. Smucker (NYSE:SJM) cuts prices on packaged coffee products by an average of 6%.
    • The reduced pricing impacts products sold under the Folgers and Dunkin' Donuts brand names.
    • Wholesale coffee prices have moderated over the last six months (Robusta chart).
    | Wed, Jul. 1, 8:21 AM | 2 Comments
  • Tue, Jun. 30, 8:08 AM
    | Tue, Jun. 30, 8:08 AM | 83 Comments
  • Fri, Jun. 26, 7:54 AM
    • PE-backed Coffee Day plans to raise 11.5B rupees ($181M) in an IPO in India, according to Reuters.
    • Coffee Day is the operator of the Cafe Coffee Day chain in India.
    • Cafe Coffee Day is a major rival of Starbucks (SBUX +0.7%) which operates through a joint venture with Tata Group in the region.
    | Fri, Jun. 26, 7:54 AM | 2 Comments
  • Mon, Jun. 22, 2:42 PM
    • Starbucks (NASDAQ:SBUX) signed a deal with French bakery Michel & Augustin to test selling the firm's cookies at stores.
    • 25 Starbucks stores in Manhattan will be part of the initial test before a rollout to outlets in the U.K. and France is considered.
    • A general strategy at Starbucks has been to acquire brands (Evolution Fresh, La Boulange) to enter new product categories, although it also has strategic partnerships.
    | Mon, Jun. 22, 2:42 PM | 9 Comments
  • Thu, Jun. 18, 12:56 PM
    • Starbucks (SBUX +1.6%) closed an Evolution Fresh store in San Francisco.
    • The development means the company will only have three Evolution Fresh stores operating as it focuses on integrating the brand at Starbucks stores and other retail distribution channels.
    • Starbucks purchased Evolution Fresh for $30M in 2011.
    • The development has some bearing on Jamba (JMBA +0.3%) which is in a better position without a broad roll-out of Evolution Fresh stores.
    • Earlier this week, Starbucks announced all La Boulange stores will be closed.
    • Starbucks CEO Howard Schultz was one of the first retail CEOs to talk about the seismic shift in the sector away from the traditional brick-and-mortar model.
    • Previously: Starbucks closes La Boulange shops (June 17)
    | Thu, Jun. 18, 12:56 PM | 1 Comment
  • Thu, Jun. 18, 10:53 AM
    • A list of Baird recommendations in the restaurant sector is pared down to four familiar names by 24/7 WallStreet.
    • The overall restaurant industry is tapped by Baird to extend its trend of solid comparable-restaurant sales growth - while Chipotle (CMG), Starbucks (SBUX +1.5%), Panera Bread (PNRA +0.2%), Dunkin Brand' (DNKN +0.8%) have all been assigned generous price targets.
    • Chipotle is the only stock of the four which trails the return of the S&P 500 this year, although the blazing starts of a number of restaurant IPOs over the last years has diverted some attention from the momentum favorites.
    • Previously: Huge returns for early restaurant IPO investors (Jun. 10 2015)
    | Thu, Jun. 18, 10:53 AM | Comment!
  • Wed, Jun. 17, 7:56 AM
    • Starbucks (NASDAQ:SBUX) announces it will close the 23 La Boulange stores it picked up as part of an acquisition of the brand in 2012.
    • The company originally planned to build out the La Boulange store base after the $100M acquisition, but reversed course after shifting toward a strategy to focus on digital channels.
    • The La Boulange label will still be used for baked goods at Starbucks stores.
    | Wed, Jun. 17, 7:56 AM | 12 Comments
  • Wed, Jun. 17, 2:23 AM
    • Starbucks (NASDAQ:SBUX) will close all 23 of its La Boulange bakery cafes by the end of September, as well as the two manufacturing facilities that serve those locations.
    • The La Boulange stores are "not sustainable for the company’s long-term growth," the Seattle-based company said in a statement.
    • Starbucks agreed to buy Bay Bread and its La Boulange brand in 2012 for $100M.
    | Wed, Jun. 17, 2:23 AM | 15 Comments
  • Tue, Jun. 16, 10:33 AM
    • Starbucks (SBUX +0.6%) says its mobile ordering service has been rolled out to 3.4K stores across 21 states.
    • Early reviews on the initiative which allows customers to place mobile orders for store pickup have been favorable.
    • Starbucks Mobile Order & Pay is available for iPhones. An expansion to the Android platform is planned for later this year.
    | Tue, Jun. 16, 10:33 AM | Comment!
Company Description
Starbucks Corp is the roaster, marketer & retailer of specialty coffee in the world, operating in 65 countries. It sells a variety of coffee & tea products. It sells goods and services under brands under Teavana, Tazo, Seattle's Best Coffee, etc.
Sector: Services
Country: United States