Tue, Feb. 23, 11:07 AM
- Starbucks (SBUX -1.1%) is taking some social media flak for its major change to the way it awards free drinks.
- Customers who purchase pricey drinks will be largely unaffected, but regulars who rely on a single straight cup of coffee a day come out behind under the new dollar-based rewards system.
- The company had to make the change after some clever gaming of the system by customers who insisted on separate transactions for orders of two to four drinks. The impact on margins may have been slight, but there have been some complaints over speed of service.
- The old SBUX math: A customer could theoretically lower his total cost by over 20% if they bought regular coffee in separate transactions and then binged on high-priced items with the freebies. That benefit wasn't lost on millennials.
- Previously: Starbucks tightens policy on rewards giveaways (Feb. 22 2016)
Mon, Feb. 22, 9:30 AM
- Starbucks (NASDAQ:SBUX) will change its loyalty program to award two stars per dollar spent by customers, instead of handing out the stars based on transaction count.
- Customers at the Gold level will receive a free reward after 125 stars ($62.50), as opposed to the old policy of a free reward for every 12 transactions.
- The quick reaction from analysts is that the margin benefit should easily offset any pushback from customers.
- SBUX +1.13% premarket to $58.32.
Mon, Feb. 22, 9:08 AM
- Shares of Stabucks (NASDAQ:SBUX) are higher in early trading just ahead of a conference call which will feature CFO Scott Maw and Chief Strategy Officer Matthew Ryan discussing the company's loyalty program.
- There's more anxiety with customers attuned to free drinks than investors looking at the margin cost of the loyalty program.
- SBUX +1.09% premarket to $58.30 (in-line with S&P 500 futures).
Wed, Feb. 17, 11:15 AM
- Starbucks (SBUX +0.1%) is facing criticism from the Action on Sugar due to the high level of sugar in many of its drinks.
- The group is pointing to several drinks that have 99 grams of sugar which is more than double than the amount in a can of Coke or Pepsi.
- The company says it's already agreed to reduce sugar in its "indulgent" drinks by 25% before the end of 2020.
- Drinks from Costa Coffee (OTC:WTBCF, OTCPK:WTBCY), KFC (NYSE:YUM), and McDonald's (NYSE:MCD) also were singled out as sugar-intense.
Sat, Jan. 23, 2:46 PM
- The economic cost of the blizzard hitting the East Coast could run as high as $850M, according to a forecast from Planalytics.
- The tally includes lost productivity and a lower level of consumer spending over the duration of the storm - even after factoring in the impact of consumers stockpiling from chains such as Home Depot (NYSE:HD), Lowe's (NYSE:LOW), Wal-Mart (NYSE:WMT), and Kroger (NYSE:KR).
- The storm is broad enough to impact domestic traffic numbers for restaurant chains (MCD, QSR, WEN, CMG, DENN, DNKN, SBUX) and movie theater operators (RGC, CKEC, CNK, AMC).
- The number of cancelled flights tied to the storm is tracking rapidly toward 10K. U.S. airlines (LUV, AAL, JBLU, UAL, DAL) have become more efficient with managing major storms, but will still take a hit to Q1 revenue.
- Looking ahead: Though harsh U.S. winters have lopped off as much as 1% to 2% from retail sales in the past, the 2015-2016 season still sits comfortably in the historical range used by economists when making their projections.
- Previously: Blizzard rally for HD, LOW, BGG, TTC, ACAT, COLM, and BDE (Jan. 22)
- Previously: Storm alert for Shake Shack and Dunkin' Donuts (Jan. 22)
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Fri, Jan. 22, 8:31 AM
- Starbucks (NASDAQ:SBUX) fired a warnings shot at JAB Holding yesterday during its post-earnings conference call.
- CEO Howard Schultz said the company is committed to staying in the K-Cup business, although it's "unresolved" if that will be with JAB acquisition Keurig Green Mountain (NASDAQ:GMCR) or on its own.
- JAB is a major coffee rival with stakes in Caribou Coffee, Peet's Coffee & Tea, and Jacons Douwer Egberts.
- Starbucks earnings call transcript
- Previously: Starbucks pulls strong comp in FQ1, guidance doesn't dazzle (Jan. 21 2016)
Thu, Jan. 21, 5:37 PM
Thu, Jan. 21, 4:16 PM
- Starbucks (NASDAQ:SBUX) reports global comparable store sales increased 8% in FQ1. The company is on a consistent track of solid comps. Last year's comp marks were +5% in Q1, +7% in Q2, +7% in Q3, and +8% in Q4.
- Traffic was 4% higher at Starbucks stores during the quarter.
- Comp growth by region: Americas and U.S. +9%; EMEA +1%; China/Asia Pacific +5%.
- The company's operating margin jumped 60 bps to 19.7% as lower dairy and coffee costs kicked in.
- Starbucks added 528 net new stores during the quarter to reach 23,571 global stores.
- Full-year FY16 guidance set at $1.87 to 1.89 vs. $1.89 consensus. Q2 FY16 EPS of $0.38 to $0.39 expected.
- SBUX -3.56% AH to $56.39.
Thu, Jan. 21, 4:06 PM
- Starbucks (NASDAQ:SBUX): FQ1 EPS of $0.46 beats by $0.01.
- Revenue of $5.37B (+11.9% Y/Y) misses by $20M.
- Shares -1.5%.
Wed, Jan. 20, 5:35 PM
Wed, Jan. 20, 9:59 AM
- Starbucks (SBUX -2.7%), McDonald's (MCD -1.1%), Dunkin' Brands (DNKN -1.9%), and Tim Hortons (QSR -2.5%) are getting relief on input costs for coffee and milk.
- Mik prices are down 13% Y/Y and coffee prices are down 9% over the last nine months, according to data from the Bureau of Labor Statistics.
- The restaurant chains have held the line on pricing for most menu items with coffee and milk.
- BLS raw data
Thu, Jan. 14, 1:06 PM
- Starbucks (SBUX +1.3%) shut down all of its stores in Indonesia after an attack inside and just outside a store in Jakarta occurred earlier today.
- The incident started when one of the attackers detonated a bomb inside the store, killing himself and injuring one customer.
- The company plans to reopen stores in Indonesia tomorrow.
Thu, Jan. 14, 8:11 AM
Tue, Jan. 12, 5:19 AM
- Starbucks (NASDAQ:SBUX) plans to open 500 stores in China every year until 2021 as it stays optimstic demand for coffee in the tea-drinking nation will explode.
- CEO Howard Schultz thinks China will become the largest market for Starbucks sometime in the future.
- The confidence from the Seattle juggernaut on China stands in contrast to the conservative positioning of some other large U.S. companies.
Fri, Jan. 8, 2:03 PM| Fri, Jan. 8, 2:03 PM | 2 Comments
Dec. 29, 2015, 5:28 PM
- Coffee prices continue to fall as strong El Nino rains in Brazil help to boost crop yields. The next harvest in the nation is forecast to be up 20% Y/Y at 58M bags.
- Even with Arabica prices down 28% this year, analysts see another swing lower for coffee in 2016 due to the oversupply situation.
- Weak currencies in South America are also providing a strong incentive to local producers to sell as much as they can.
- The trend toward low coffee prices is helping to lift margins for many coffee sellers with U.S. retail prices only down 4% to 5% this year. Companies light on hedging positions are seeing the biggest benefit.
- Most execs play coy over the bottom line benefit of lower coffee commodity prices, but even Starbucks CFO Scott Maw had to concede that pricing looked a "little bit favorable" during the firm's last earnings call (transcript).
- Coffee futures chart
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Starbucks Corp. engages in the manufacture and sale of coffee and tea. The firm operates through the following segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; Channel Development; and Other. Its brand portfolio includes Starbucks Coffee, Seattle's Best Coffee, Tazo Tea,... More
Industry: Specialty Eateries
Country: United States
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