Starbucks

The company saw its stock take a 3.5% hit earlier this week after the Wall Street Journal reported that the SEC is looking at how the company is recognizing revenue. Specifically, the SEC was reported to have concerns about how the company treated its gift card revenue as well as an upfront payment of $7B…

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Starbucks

CFO Pat Grismer presented to the Goldman Sachs conference earlier this week and gave a brief look at US operational developments with Starbucks’. Interestingly, he made some of the very same points that Dunkin Brands did in 2017 and 2018 when the Dunkin Blueprint was implemented. Starbucks acknowledged they would stay beverage focused to drive…

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Competitor News

Although they haven’t taken or scheduled any formal actions yet, unionized workers at a supply distributor that services about 900 Starbucks formally authorized a strike last week. The workers, approximately 300 drivers and warehousemen, and members of the Teamsters Union Local 710, are employed at 4 DPI Specialty Foods Inc. facilities in Chicago, Indianapolis, Minneapolis…

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Starbucks

Starbucks made several announcements this week even before reporting their Q2 earnings yesterday. Monday, it announced a major investment in Eatsa, rebranding the company as Brightloom and advancing the merger of Brightloom’s digital-edge ordering and pick-up systems with Starbucks’ proprietary customer engagement platform into one combined system. In addition, the company also announced that it…

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Competitor News

Starbucks dominates our competitor news this week on a few fronts. Most notable is that 6 police officers at a Tempe Arizona store were asked to leave by an employee because of a complaint that a customer did not feel safe in their presence! (????)  Boston Herald columnist Joe Fitzgerald, after writing about the incident,…

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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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