So the strike authorization vote at coffee giant Starbucks (SBUX) seems to have gone through, as multiple reports of planned strikes are coming in. Though it is unclear just how far the strikes will go, having any kind of labor strike land ahead of what is essentially prime time for hot beverages will likely hurt to some degree. Investors seem comparatively unfazed about the whole matter, as shares gained fractionally in Monday afternoon’s trading.
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There are currently three strikes planned for Ohio, reports note, with Ontario’s location already staging a one-day strike yesterday. Tomorrow will see the Bowling Green location strike, followed by Cleveland’s Euclid Avenue location next on Saturday. Sunday will see a strike itself at the North High Street location in Worthington.
Strikes were also planned in Richmond, Virginia, reports noted, with some taking place on Sunday. Starbucks, meanwhile, offered up a statement, saying, “Workers United only represents around 4% of our partners but chose to walk away from the bargaining table. If they’re ready to come back, we’re ready to talk. Any agreement needs to reflect the reality that Starbucks already offers the best job in retail, including more than $30 an hour on average in pay and benefits for hourly partners. We’re investing over $500 million to put more partners in stores during busy times. The facts show people like working at Starbucks. Partner engagement is up, turnover is nearly half the industry average, and we get more than 1 million job applications a year.”
A Planned Opening
Even as Starbucks is closing a swath of stores nationwide, it is also planning at least one new store opening. A Starbucks with a drive-thru location was planned for Bergen County in New Jersey, reports noted. Specifically, the store is slated to open in Tenafly, on 71 County Road.
The project is still waiting for the official nod, reports note, and Starbucks recently closed at least five stores in New Jersey as part of its recent flurry of store closures. Two stores in Fort Lee were shuttered, as was a location in Morristown, another in Manchester, and a third in West New York.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 13 Buys, six Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 12.17% loss in its share price over the past year, the average SBUX price target of $100 per share implies 15.15% upside potential.
