One policy that seems to be raising a lot more controversy than sales at coffee giant Starbucks (SBUX) is cup writing. While sometimes, the cup writing problems seem to be more blown out of proportion than anything else, or are merely hoaxes, sometimes it goes a little farther than that. Another such issue seems to have boiled up again, and once more, around Charlie Kirk. Investors did not seem particularly concerned, though, and sent shares up fractionally in Tuesday afternoon’s trading.
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This time, the problem struck in Ohio, where a customer put in an order for the Charlie Kirk drink of choice—a mint majesty tea with two honeys—and got it back not long after. The problem was the cup message, which reports noted read: “Racist’s fav drink.”
Here is where things take an interesting twist. The person who got the drink—Middletown, Ohio resident Autumn Perkins—complained to the manager, showed the cup in question, and the manager turned to the staff. One of them actually admitted to doing it, and was directly fired. Meanwhile, Starbucks offered a statement, which read in part, “Writing this on a cup is unacceptable, and we have clear policies that prohibit negative messages to help preserve a welcoming environment.”
Union Troubles Continue
Starbucks’ troubles with the union, meanwhile, continue as a new court decision hit and found Starbucks guilty of violating labor laws. Specifically, noted Administrative Law Judge Melissa M. Olivero, Starbucks violated Sections 8(a)(3) and 8(a)(1) of the National Labor Relations Act (NLRA) when it fired four employees over union activity.
Further, Starbucks also designated one of the employees as “ineligible for rehire,” and also failed to rehire that employee, reports noted. Further, reports noted, Olivero applied “…the Wright Line framework…” to determine whether or not the activity the employees engaged in was protected or not. The subsequent verdict seems to have found it was.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, six Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 9.7% loss in its share price over the past year, the average SBUX price target of $102.10 per share implies 19.19% upside potential.
