Starbucks

On its earnings call on Tuesday of this week, Starbucks reported respectable earnings, beating both expected revenues ($22 million) and EPS ($.22 EPS, GAAP basis) for Fiscal Quarter 3.  In the US, it has regained most of its prior position with same-store sales plus 10% versus Q3 in 2019 (plus 83% versus 2020). Virtually all…

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Competitor News

The big news amongst competitors this week was the formal filing of the Krispy Kreme Initial Public Offering (IPO) where the company is expecting a valuation of $4 Billion. With 87% of its US stores having a drive-thru, company sales in 2020 were the highest ever at $1.122 billion, up from just under $1 billion…

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Competitor News

With a strong base of 400 stores in Oregon, Washington and Northern California, Dutch Bros. confirmed this week that it is readying an Initial Public Offering (IPO) to take the company public. They have some company stores but are mostly franchised with drive-thrus. With sales per unit of $1.46 million, the brand’s forte is the…

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Competitor News

Krispy Kreme going public again commanded a good amount of news coverage recently, and rightly so. The North Carolina-based donut chain with about 1500 units nationwide filed an IPO earlier this week looking to raise $100 million through the offering. The company was previously publicly traded until JAB Holdings took it private just 5 years…

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McD’s Raises Pay, Braces for Strike

SEIU-backed Fight for $15 is again organizing a strike amongst QSR workers – mostly McDonald’s employees – in 15 selected cities around the country for next Wednesday, timed to coincide with the company’s annual shareholder meeting. Again, SEIU is seeking to generate sufficient pressure on the Golden Arches to get the company to pay a…

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Competitor News

Krispy Kreme may be going public again, after being privately held by JAB Holdings since it acquired the Winston-Salem based chain out of bankruptcy just about five years ago. Krispy Kreme officials acknowledged earlier this week that it had confidentially filed a draft initial public offering (IPO) with U.S. regulators. The IPO still must be…

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Starbucks

Starbucks reported positive same store sales of plus 9% in the company’s Q2 earnings report on Tuesday of this week. The favorable result was comprised of positive ticket of 22% along with negative transactions of 10%. Against a backdrop of increased 2021 guidance, the company’s tone was very self-congratulatory notwithstanding that it was still comparing…

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Miscellaneous

A recent Rasmussen Poll shows that only 31 percent of Americans actually support increasing the federal minimum wage to $15 per hour. Although other polls have indicated strong support for a higher wage across the country – 80 percent believe the minimum wage should be increased – almost 70 percent believe $15 is just too…

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Starbucks

Last week, Starbucks announced that the company would be testing out cold pressed espresso in a limited number of stores throughout 2021. The cold pressed espresso was initially introduced at the Starbucks Reserve Roastery in Seattle in 2017.  In addition, the company also announced that it would be rolling out large print and braille menus later…

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Miscellaneous

Starbucks Shareholders yesterday rejected an eye-popping executive compensation proposal for the C-Suite that included a $1.86 million payout for CEO Kevin Johnson as a performance bonus for fiscal year 2020 along with $50M in “retention pay” if the CEO were to stick around with the company through fiscal year 2022! Although the rejected resolution was…

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