Starbucks (NASDAQ: SBUX) retrained most of its store workers last week. Howard Schultz, the returned founder and CEO, has replaced a number of the lame-brains in senior management.
It would be hard to tell from the stock price that any of this was more than wasted energy. The shares dropped 10% in February to finish at $18.71.
Wall St. understands that with slowing growth in the US, Starbucks earnings are still exposed to poor year-over-year comparisons as the quarters are reported during 2008.
But, the company may have a more serious problem. The cost of milk has gone up over the last year. Now the price of coffee is taking off. According to The Wall Street Journal "The price of green coffee beans has risen 22% since the beginning of the year in trading on ICE Futures U.S." While Starbucks buys most of its coffee under long-term contracts with set prices. However, those deals will not protect the company’s cost of sales margins forever.
Starbucks investors have one more headache. and they may have it for a long time.
Douglas A. McIntyre
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
