Oct. 21, 2015, 7:03 AM
- Starbucks (NASDAQ:SBUX) plans to appeal a tax ruling by the European Union over deals with the Netherlands and Luxembourg.
- The company says it sees "significant" errors in the EU decision.
- A recovery of as much as €30M ($34.1M) was ordered by the EU.
- Previously: EU concludes Starbucks, Fiat tax deals are illegal (Oct. 21 2015)
Oct. 21, 2015, 6:26 AM
- Starbucks (NASDAQ:SBUX) and Fiat Chrysler (NYSE:FCAU) have been ordered to pay tens of millions of euros in tax repayments, under a new ruling that may spell big trouble for other corporations.
- "All companies, big or small, multinational or not, should pay their fair share of tax," EU antitrust chief Margrethe Vestager declared at a news conference today, stating the two companies' European tax deals were illegal.
- Who's next? European regulators are finishing up investigations into McDonald's (NYSE:MCD) and Amazon's (NASDAQ:AMZN) tax affairs in Luxembourg and Apple's (NASDAQ:AAPL) arrangements in Ireland.
- Previously: Starbucks, Fiat in hot water over European tax deals (Oct. 15 2015)
Oct. 19, 2015, 1:56 PM
- Starbucks (SBUX +1.6%) will face tax repayments in the tens of millions of euros in Europe after the EU issues a landmark decision this week, sources tell Financial Times.
- The EU ruling is expected to have far-reaching implications for multinationals which use cross-border trades to reduce tax liabilities.
- Apple, Fiat, and Amazon are all also in the cross-hairs of European regulators over the amount of taxes they paid.
Oct. 15, 2015, 2:16 PM
- Reuters and Italian paper Corriere della Sera report Starbucks (SBUX +0.7%) is in talks with local business magnate Antonio Percassi to open branches in Italy. Corriere adds a deal is expected by Christmas.
- Italy is one of the few major international markets in which Starbucks (21K+ stores in 65 countries) isn't present. The country's entrenched cafe culture - Italians often prefer espresso drinks to regular coffee, and typically pay less for them than what Starbucks normally charges - has been seen as a reason why Starbucks has held back.
- Nonetheless, Italy's potential might be too much for Starbucks to ignore. The country has 60M people and Europe's 7th-highest per capita coffee consumption. A survey indicated Italians collectively down 70M cups of espresso per year.
Oct. 15, 2015, 8:47 AM
- Wrapping up a year-long investigation, the European Union is expected to rule next Wednesday that Starbucks (NASDAQ:SBUX) and Fiat Chrysler (NYSE:FCAU) have benefited from illegal tax deals in Europe, WSJ reports.
- What was illegal? It appears that the deals were extended to some companies and not others, in violation of EU law.
- Starbucks and Fiat may have to pay back the taxes they should have paid in the past, though it isn't yet clear whether regulators will demand them to do so.
- Whatever the case may be, the ruling is likely to heighten the uncertainty for U.S. multinationals operating in Europe.
- Previously: EU to probe corporate tax rates in Ireland, Luxembourg, Netherlands (Jun. 11 2014)
Oct. 14, 2015, 10:20 AM
- Starbucks (SBUX -0.9%) plans to add video screens at the drive-thru lanes of 2.4K U.S. cafes, reports Bloomberg. The video screens will display the face of the barista and detailed order information.
- The investment is part of an overall strategy at Starbucks to strengthen its brand even further by focusing on the barista-to-customer relationship.
- Earlier today, Starbucks showed its brand strength is filtering down to new generations by ranking first as the top restaurant pick of teenagers.
Oct. 14, 2015, 9:29 AM
- Piper Jaffray's detailed survey of teenagers indicates their restaurants of choice may not be so different than their parents.
- Starbucks (NASDAQ:SBUX) was picked as the top restaurant by the 13-year old to 19-year old group, with Chipotle (NYSE:CMG) and Chick-fil-A ranking second and third.
- Perhaps a surprise, McDonald's (NYSE:MCD) ranked fourth, while Panera Bread (NASDAQ:PNRA) was solid with a 5th place listing.
- Notably missing from the list were Taco Bell (NYSE:YUM), Wendy's (NASDAQ:WEN), and Subway.
- Piper Jaffray infographic on survey results (.pdf)
Oct. 13, 2015, 12:51 PM
- Starbucks (SBUX -0.2%) is testing office delivery of its products today at the Empire State Building in New York City.
- The Green Aprons Delivery program will be run out of a dedicated kitchen in the 84-year old building.
- If the pilot project goes well, a broader roll-out of Green Aprons Delivery is expected.
Oct. 12, 2015, 3:22 PM
- Restaurant sales rose 1.5% in Q3 on a comparable-store basis, a deceleration from the 1.8% growth seen in Q2, according to data from Black Box Intelligence.
- A higher average guest check during the quarter, helped to offset a 1.2% decline in traffic.
- Black Box warns of continued traffic weakness in Q4 due to "stagnant" growth in employment and wages. There's also a tougher weather comparison with last year viewed as an overall favorable winter season for traffic.
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Oct. 6, 2015, 4:59 PM
- Gerri Martin-Flickinger, formerly Adobe's chief information officer (CIO), has been hired by Starbucks (NASDAQ:SBUX) to fill the newly-created role of chief technology office (CTO). She'll report to COO Kevin Johnson.
- At Adobe, Martin-Flickinger oversaw the company's cloud infrastructure as the company migrated much of its user base from traditional software licenses to cloud subscriptions. Johnson: "As we continue to shape our global technology agenda at Starbucks, we needed leadership talent with deep experience in cloud, big data analytics, mobile and security to take us to the next level."
- Starbucks, of course, isn't a stranger to making big digital service investments. The company handles over $1B/year in payments through its mobile apps, has partnered with Google to offer fast Wi-Fi, and has been rapidly rolling out its Mobile Order & Pay solution.
Oct. 6, 2015, 1:41 PM
- Starbucks (SBUX -0.8%) will launch its new mobile order and pay service in Canada on October 13.
- The chain will offer the order option in 300 company-owned stores in Toronto before rolling it out to other Canadian cities in 2016.
- Mobile Order & Pay is expected to provide a same-store sales lift to Starbucks in Q4 with early execution reported to be on track.
Oct. 5, 2015, 12:44 PM
- Blame it (mostly) on energy/commodities as Markit expects another 62% cut in dividends in the basic resources sector. Payouts in the media sector will decline 21%, but this is due to Disney switching from paying annually to semi-annually, and reallocating $1.1B in returns to next year.
- In total, Markit sees dividend growth of just 3.4% in Q4, down from 11.5%, 11.4%, and 24.1% growth in the previous three quarters. Special dividends in Q4 this year will total just $1.5B, down from $5.6B a year ago.
- The top five dividend increases coming in Q4: MasterCard (NYSE:MA) is expected to boost its payout by 31%; Visa (NYSE:V) by 25%, CVS (NYSE:CVS) Health by 23%, Lincoln Financial (NYSE:LNC) by 20%, and Starbucks (NASDAQ:SBUX) by 19%.
- ETFs: DVY, SCHD, ADX, SDOG, DLN, DHS, FDL, DTD, FVD, DVYL, SDYL
Oct. 1, 2015, 4:15 PM
- Starbucks (NASDAQ:SBUX) is the latest large food company to say it plans to transition to the use of only cage-free eggs.
- The company plans to make the switch before 2020.
- Within the egg sector, Cal-Maine Foods (NASDAQ:CALM) ended the day up 3.41%, although that move may be unrelated to the Starbucks development. However, Cal-Maine is increasing its focus on cage-free egg production through a new JV.
Oct. 1, 2015, 12:55 PM| Oct. 1, 2015, 12:55 PM | 3 Comments
Sep. 29, 2015, 9:39 AM
- Starbucks (NASDAQ:SBUX) franchisee Anil Patil has plans to roll out 100 Starbucks stores in the U.K. over the next five years. His group aims to enter some under-served areas of the region.
- Panil has had previous success in the U.K. growing out a group of Domino's Pizza franchised stores which were eventually sold.
- Starbucks owns or franchises about 800 stores in the U.K.
Sep. 25, 2015, 11:30 AM| Sep. 25, 2015, 11:30 AM | 29 Comments
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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