Five unionized Starbucks (SBUX) outlets in Canada have ratified their first collective agreements.
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The United Steelworkers union, which represents the Starbucks workers, says the union-led contracts are a significant milestone in the push for collective bargaining at the Seattle-based coffee company. Starbucks locations in the Canadian province of Ontario ratified the collective agreements.
This is the latest union issue that Starbucks has had to contend with. The company has been grappling with growing unionization efforts in the U.S. and Canada for several years. Union drives at Starbucks outlets in Canada have had mixed results.
Union Push
In 2023, the company closed its only unionized shop in the Canadian city of Vancouver. The United Steelworkers made a complaint about that closure. However, the British Columbia Labour Relations Board found that the company had legitimate reasons to close the Vancouver location that had unionized.
Across the U.S., a unionization push by the Starbucks Workers United union has grown from its first successful drive in Buffalo, New York in 2021 to now representing more than 550 stores and 11,000 workers. SBUX stock has declined 8% this year.
Is SBUX Stock a Buy?
Starbucks’ stock has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 15 Buy and eight Hold recommendations issued in the last three months. The average SBUX price target of $94.74 implies 13.08% upside from current levels.
