Starbucks Stock Slips As Strikes Expand: Retail Mood Slides
By Stocktwits Inc | First Published Dec 23, 2024, 10:51 PM ISTDiscussions on wages, schedules, and staffing have stalled in recent weeks because of “unresolved issues” that led to the strikes.
Starbucks stock was down 1.23% on Monday morning as workers at the coffee retail giant expanded their strike, dampening retail sentiment.
Workers have gone on a five-day strike, expanding in four additional cities, including New York as of Saturday, according to media reports. The company union, Workers United, has asked for a 64% increase in wages for its hourly workers and 77% for those with a three-year contract.
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The other affected locations include cafes in Los Angeles, Chicago, and Seattle, spreading to a total of 10 cities.
Discussions on wages, schedules and staffing have stalled in recent weeks because of “unresolved issues” leading to the strikes, said a report by Equity Pandit.
Retail sentiment on the stock turned ‘bearish’ from ‘extremely bearish’ a day ago. Message volumes increased to ‘high’ from ‘normal.’
Starbucks is expected to report earnings in January, with an estimated earnings per share of $0.67 and revenues of $9.34 billion.
According to a report in the Daily Upside, Starbucks first unionized in 2021 and its labor union represents about 12,000 workers across 500 U.S. cafes.
A Bloomberg report meanwhile said that many Starbucks corporate employees were said to be receiving only 60% of bonuses for the most recent fiscal year, following the slump in its financial results.
Starbucks stock is down 7.25% year-to-date.
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