Leading coffee chain Starbucks (NASDAQ:SBUX) intends to provide “clearer” guidelines for in-store Pride displays and decorations that will “continue to represent inclusivity” and the company’s brand. Per Reuters, the message conveyed by Starbucks North America President Sara Trilling via an internal memo came following allegations by the union representing baristas that managers at several Starbucks locations prevented employees from displaying Pride Month flags and decorations or removed them.
Dispute Over LGBTQ+ Stance
Workers at dozens of Starbucks locations held strikes starting Friday, expressing their anger over the matter in support of LGBTQ+ Pride month. Last week, the union threatened that over 3,500 workers at more than 150 U.S. Starbucks stores will go on strike. In fact, several customers did not enter the stores in support of the strike.
A Starbucks spokesperson denied the allegations and expressed concerns over the false information being spread about the company’s inclusive culture and the benefits it offers to its employees. The spokesperson assured that the company “unwaveringly” supports the LGBTQIA2+ community. The company earlier denied other allegations, including an accusation that it changed the health coverage for gender reassignment surgery.
On Monday, Starbucks filed two complaints against the Workers United union with the National Labor Relations Board (NLRB), alleging that the union made false claims about the company’s in-store decor guidelines and gender-affirming care benefits.
However, in a statement to Reuters, the Workers United union said that the NLRB dismissed every charge filed by Starbucks against them and expressed confidence about the dismissal of any potential charges, calling such actions “nothing more than a public relations stunt meant to distract from Starbucks’ own actions.”
Meanwhile, Anheuser-Busch InBev (NYSE:BUD), Target (NYSE:TGT), and Kohl’s (NYSE:KSS) have been targeted by conservative consumers for supporting the LGBTQ+ community. In particular, Anheuser-Busch InBev’s Bud Light beer brand has been experiencing declining sales after receiving backlash for its partnership with transgender influencer Dylan Mulvaney.
What is the Price Target for SBUX Stock?
On June 13, Piper Sandler analyst Brian Mullan assumed coverage of Starbucks with a Hold rating and a price target of $107. Mullen expects the macro uncertainty to impact consensus estimates in the second half of 2023 and the first half of 2024, which could offset the potential upside in SBUX stock.
The Moderate Buy consensus rating on Starbucks is based on 11 Buys and nine Holds from 19 Top Wall Street Analysts. The average price target of $118.06 implies about 20.2% upside.
