Coffee giant Starbucks (NASDAQ:SBUX) may finally see some relief from its labor troubles. The Strategic Organization Center (SOC), a coalition of labor unions, is putting a stopper to its boardroom battle with Starbucks. SOC is withdrawing its director nominations to Starbucks’ board just a week before the company’s annual meeting on March 13.
The development comes after SBUX recently agreed to work toward achieving labor agreements. The effort also raises hope that Starbucks will finally overcome its strained relationship with employees.
Starbucks’ friction with its employees’ unionization efforts has been weighing on the stock for quite some time now. Nearly 400 of Starbucks’ 9,700 locations in the U.S. have seen unionization. Workers United, the labor union, is looking to add more outlets to its ranks. Now, SBUX and the labor union have agreed to set up a framework for organizing and collective bargaining, according to Reuters.
Importantly, the union is seeking a national template for bargaining. The outcome could gradually impact other major names in the service industry as well. In another development, AlShaya Group, Starbucks’ franchisee in the Middle East, is slashing over 2,000 positions due to challenging business conditions.
What Is the Target Price for SBUX?
Starbucks’ share price has declined by nearly 12% over the past year. Overall, the Street has a Moderate Buy consensus rating on the stock. The average SBUX price target of $107.88 points to a nearly 18% potential upside in the stock.
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