Competitor News

Just over one week ago, Starbucks CFO Pat Grismer presented at the Piper Jaffray 2019 Consumer Marketplace Conference and in terms of US news, he noted the nitro rollout throughout the balance of the US would be completed by September. He also reported that they were working on store footprint portfolio changes, such as drive-thru…

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Starbucks Earnings

Starbucks reported 2nd quarter earnings yesterday and our analyst reports that their sales and earnings results were solid but not overpowering. America’s same store sales were plus 4%, with transaction counts flat and their average ticket 4% higher.  In the US, Starbucks continues to both open and close stores in tandem. Management noted they were working…

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Competitor News

Starbucks announced earlier this week that it is making enhancements to its loyalty program in order to attract new members to their program and engage them more quickly. Effective April 16, Starbucks Rewards members will be able to redeem rewards once they’ve accumulated 25 points vs. the current threshold of 125 points. The company claims…

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Schultz Ponders POTUS Run

In the cacophony of candidate announcements of exploratory committees, fundraising initiatives, and ‘test-the-waters’ visits to New Hampshire and Iowa, perhaps none is generating as much response as speculation about a Howard Schultz independent campaign. The former Starbucks CEO confirmed this week that he is considering launching an independent campaign for the White House that has…

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Competitor News

Starbucks reported strong Q1 earnings yesterday and advised that global comparable store sales were up 4.0% during the quarter with ticket/pricing adding 3 points to growth. Americas SSS were reported at +4% vs. a projected 3.2%. Globally, the company claimed 541 net stores during Q1 accounting for a 7% growth year over year to a…

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Competitor News

Starbucks announced this week that it was changing course relative to its upscale Reserve Roasteries and Reserve coffee bars, redirecting its focus on traditional outlets. Under former CEO Howard Schultz, the company had planned to open as many as 1,000 new Reserve coffee bars, but current CEO Kevin Johnson has scrubbed those plans for the…

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Competitor News

Speaking of Starbucks, the company held its investor conference this week and clearly struck a confident tone, with major international growth planned especially in China (projecting 6,000 stores across 250 cities) and a domestic focus on growth in the Midwest. The company also announced a new partnership arrangement with Uber Eats in order to expand…

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Idle Hands, Indeed!

Back in June of this year when he stepped down as CEO of Starbucks, Howard Schultz responded to rumors that he was planning a run for the White House by simply stating he intended “to think about a range of options, and that could include public service. But I’m a long way from making any…

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Competitor News

Coming just a week plus after announcement of its Q4 earnings (Global SSS +3%, US +4%), Starbucks laid off as many as 350 corporate employees, approximately 5% of its total corporate workforce. The company’s progressive corporate reputation notwithstanding, one employee complained about the one hour notice she received to turn in all company equipment and…

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Miscellaneous

Starbucks (SBUX) was finally able to post an improved showing in Q4 results announced Thursday, with US same store sales up plus 4%, ticket up plus 5% and traffic only minus 1%. However, analysts were wary of them attaining their long term 3-5% comps guidance. Starbucks began its Christmas season in store retail and digital…

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