Starbucks Q2 Earnings Call

Starbucks interim CEO Howard Schultz presided over the company Q2 earnings call earlier this week at which he announced plans for a $1 Billion investment in revised 2022 OPEX/CAPEX for such items as additional employee investments, more training, replacing equipment, building new stores and planning new sales platforms. This is the largest mid-year flex-up in…

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Competitor News

Last week, McDonalds reported Q1 earnings with overall stable conditions except for the increased costs for food and labor. U.S. same-store sales rose 3.5%, sequentially lower than the last several quarters, in part due to using 2021 as the base. The company reported traffic was minus 1% and while US guests were generally spending and…

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Competitor News

Although perhaps not considered direct competitors with Dunkin’, we noted that Panera is testing artificial intelligence coffee makers. In partnership with Miso Robotics, Panera is introducing “CookRight Coffee”, an AI-powered system that the company claims will monitor coffee metrics such as volume, temperature and time data with predictive analysis. And finally, I’ll confess to a…

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Starbucks Union Woes Continue

With 6 more upstate New York stores and a shop in Kansa voting to unionize last week, only to be followed by 2 Boston area stores doing so UNANIMOUSLY this week, Starbucks will be pursuing a different strategy moving forward under interim CEO Howard Schultz (also the founder and twice previously President and CEO). In…

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Competitor News

Aside from its ongoing union problems, there’s more news coming out of Starbucks of late. Of course, with the recent resignation of CEO Kevin Johnson, founder and former CEO Howard Schultz officially took the helm again this week and jumped right into the fray. He hosted a town-hall style open forum for employees at which…

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Starbucks Unions Now Number 7

A Starbucks store in the company hometown of Seattle became the seventh and latest store to formally vote for union representation, joining 5 other stores in the Buffalo New York market and one outlet in Mesa Arizona. The vote at the Seattle location was unanimous with 9 voting in the affirmative and one vote challenged…

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Starbucks Union and Issues Growing

One would have thought Starbucks had a full plate of issues with 6 stores newly unionized and another 120+ awaiting NLRB approval and scheduling of union representation elections, but there’s more the company is dealing with now. This week at the company’s annual meeting, Starbucks CEO Kevin Johnson announced that he was retiring – on…

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Starbucks

Starbucks (SBUX) revealed their Quarter 1 2022 earnings on Tuesday. They delivered a small revenue beat but missed Q1 earnings by $.08. More significantly, they lowered earnings for the rest of 2022, and noted they would not be back to their long-term earnings profile of 18 to 19% operating income margin until 2024. 2022 will…

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Competitor News

McDonalds reported Q4 and full year 2021 earnings yesterday. While absolute sales and profit levels were higher in 2021 versus 2020, both sales and earnings missed analyst’s projections in Q4. Both food and labor costs have become a very difficult problem and McD is forecasting food and paper costs in the “high single digit to…

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Competitor News

Aside from its growing union issues, Starbucks this week reversed course on its own previously announced employee vaccine-or-test mandate after the U.S. Supreme Court rejected the Biden administration vaccine-or-test mandate. Starbucks told employees this week that the company will no longer require its US workers to be vaccinated or undergo weekly testing as it had…

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