Mar. 25, 2014, 1:05 PM
- Coffee futures show increasing volatility as strong rains in Brazil bring relief to the drought-stricken region.
- A measure of volatility on the 60-day Arabica futures contract hit its highest level since 2000 as prices eased back to $1.743 a pound earlier today.
- Citi forecasts prices will fall in range of $1.51 to $2.25 over the next few quarters as the impact of the drought lingers.
- Related stocks: SBUX, GMCR, JVA, DNKN
- Related ETFs: JO
Mar. 25, 2014, 8:48 AM
- Starbucks (SBUX) says it has a new coffee source off the slopes of Mauna Loa in the Kona region of Hawaii.
- The company calls the coffee from the region an "extremely high quality" blend with meticulous care part of the process.
- What to watch: The development is interesting because although Starbucks tipped off recently it wouldn't raise prices anytime soon, it's possible that it could sell new premium blends to improve margins via its mix.
Mar. 20, 2014, 8:33 AM
- Starbucks (SBUX) plans to sell alcohol in the evening at thousands of its stores.
- The revelation came from COO Troy Alstead during an interview with Bloomberg.
- The company says testing of the concept at select stores has gone very well.
- Starbucks outlets located near movie theaters, restaurants, and areas with an active nightlife are more likely to be tapped for alcohol sales.
Mar. 19, 2014, 1:56 PM
- Starbucks (SBUX +2.1%) is still in the "early stages" of its growth and development, according to CEO Howard Schultz.
- Mobile payment snow account for 14% of all in-store transactions in the U.S. to mark a rapid-fire from the 10% it disclosed just 8 months ago. Schultz says to look for an expansion of the company's mobile payments business.
- Tea will be a focus this year as Starbucks opens 20 new Teavana stores and dabbles with its Teavana Tea Bar concept.
- Though the coffee chain has no plans to raise prices, it will look to improve its average customer transaction amount which is already north of $5.
- Starbucks Annual Meeting webcast
Mar. 19, 2014, 9:02 AM
- Consumer product stocks are well-represented on a list of the top growth stocks at reasonable prices from UBS.
- The list from the investment firm is based on companies which show quality metrics, solid earnings growth potential, and reasonable valuation. 24/7 Wall St. took it one step further by filtering the UBS list for the top dividend payers.
- Coca-Cola (KO), Colgate-Palmolive (CL), and Home Depot (HD) all make the quality growth roll call along with surprise entry Starbucks (SBUX).
Mar. 18, 2014, 8:53 AM
- The price of milk rose to an all-time high yesterday on the back of strong demand from global buyers.
- A tough winter in the U.S. has also curtailed production tallies.
- Most of the additional milk costs are being passed on to consumers, according to data from the USDA. Milk prices rose 27% Y/Y in February.
- Analysts are split on how much wiggle room companies have to boost prices higher with consumers before hitting stiff resistance.
- Milk futures charts
- Stocks with a tie-in to milk: SJM, DF, NSRGY, WWAV, LWAY, DNKN, MCD, SBUX, KO, GIS, SYUT, ADY.
Mar. 14, 2014, 11:07 AM
- The new deal signed by Starbucks (SBUX -0.1%) with Keurig Green Mountain (GMCR +3.7%) is a bet on the power of its brand, say analysts.
- The company is opening up competition on the premium end while giving itself a wide variety of K-Cup products it can offer to consumers.
- The road for new K-Cup players gets a little trickier with the super-premium category a tough place to grab market share and Starbucks now a force at differing price points.
- For Keurig, an increase in K-Cup volume and more competition on the high-end could be a boost.
Mar. 14, 2014, 10:50 AM| 1 Comment
Mar. 12, 2014, 7:08 AM
- Breakfast traffic at restaurants increased 3% last year to easily outpace lunch and dinner visits which both showed declines, according to NPD data.
- Quick service restaurants accounted for close to 80% of all the breakfast visits by consumers.
- McDonald's (MCD) and Starbucks (SBUX) strengthened their breakfast market share position during the year, but a host of companies including Taco Bell (YUM) and Chipotle (CMG) are testing new formats and breakfast items.
Mar. 11, 2014, 11:56 AM
- Starbucks (SBUX +1.8%) CEO Howard Schultz was pretty firm in an interview on Fox Business Network that the company doesn't plan to hike coffee prices despite higher commodity cost.
- "I suspect coffee prices might go up even higher. We will anticipate that and most importantly, we can manage through it. We do not have any intention at this time to raise prices," says Schultz/
- The company is protected for at least a year against higher prices due to its forward pricing strategy.
- Schultz also says he sees a "seismic shift" in mobile payments. Starbucks remains a retail leader in the area with close to 10M customers using its app and has several new customer-friendly initiatives on tap to be released this year.
- It's crystal clear that Starbucks isn't denying or challenging the Amazon Effect, but is planning around it.
- FBN interview (video)
Mar. 10, 2014, 8:17 AM| 1 Comment
Mar. 7, 2014, 11:48 AM
- K-Cup data from IRI gives a look at which coffee companies are showing the most momentum.
- Green Mountain Coffee Roasters (GMCR) is the market leader at 20% share, a tally which doesn't include partner brands such as Donut House (6%) or Revv (1%). Starbucks (SBUX) claims 13% and Folgers (SJM) is at 12% share.
- On a unit growth sales basis, Starbucks was up 47% Y/Y (period ending 1/26/14) to power past Green Mountain's 29% pace and Folgers at 22%.
- Private labels saw K-Cup unit growth of 471% as new brands emerged over the last year following patent freedom.
Mar. 5, 2014, 9:06 AM
- A recent poll by the Wall Street Journal and NBC indicates 63% of American support raising the minimum wage.
- Though the Republicans are expected to challenge anything brought to the floor of the House, there's a growing consensus in DC that some minimum wage legislation will eventually pass.
- Democrats argue that the current minimum wage level of $7.25 per hour is low by historical standards when adjusted for inflation.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT
Mar. 4, 2014, 10:11 AM
- Starbucks (SBUX +1.8%) isn't sitting out the escalating breakfast war between large chains such as Taco Bell and McDonald's.
- The company has increased the number of morning sandwiches it offers to customers without having to make the expensive investments in kitchens.
- What to watch: Analysts call the breakfast crowd "sticky" as repeat visits are the norm. A win in the category by Starbucks could be disruptive, especially if it turns the trick without lowering prices.
- Bloomberg video
Feb. 26, 2014, 2:44 PM
- Three Senate Democrats have broken away from Majority Leader Harry Reid's $10.10/hour line in the sand on minimum wage legislation.
- Mary Landrieu of Louisiana, Mark Pryor of Arkansas, and Mark Warner of Virginia have all tipped off that they think there could be some room to negotiate over the amount of an increase over the current federal minimum wage of $7.25/hour. The GOP likes the status quo, but is viewed as likely to give some ground in an election year.
- Federal minimum wage legislation could create higher costs in the retail and restaurants sectors as companies adjust to the new higher floor.
- Last week, Gap made a preemptive move to raise its own hourly wage in a development that stirred the pot a little bit.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, AEO, ANF, ARO, BBBY, BJ, CHS, COST, DG, DLTR, GPS, HD, JCP, JWN, KR, KSS, LOW, LB, NDN, ODP, PIR, PLCE, RSH, SPLS, SWY, TGT, TJX, URBN, WMT.
Feb. 25, 2014, 9:54 AM
- Starbucks (SBUX -0.7%) announces it will bring more cold-pressed juices to stores in the Chicago area and other parts of the Midwest.
- The company says it will continue to roll out the Evolution Fresh brand nationally throughout 2014.
- The momentum of the Evolution Fresh brand is significant to Jamba (JMBA -0.1%).
SBUX vs. ETF Alternatives
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.
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