Retail
Starbucks (SBUX) Reward For Cutting Prices: An S&P Downgrade
Published:
Last Updated:
Starbucks (SBUX) announced today that customers will be able to buy a coffee and breakfast item for $3.95. Can Starbucks afford to do that with its relatively high costs of real estate, workers, and food? Only the management at the company can say for certain.
Perhaps it is a coincidence, but S&P cut Starbucks’ rating after the close. The agency revised its outlook on Starbucks to negative from stable. At the same time, it lowered the company’s short-term rating to ‘A-3’ from ‘A-2’ and removed it from CreditWatch with negative implications.
If the new $3.95 meal plan does not help, Starbucks is going to get cut again.
Douglas A. McIntyre
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
