Starbucks accused of risking shareholder value: find out more

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on Feb 20, 2024
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  • Labour coalition blasts Starbucks for aggression against unionization.
  • Here's what $SBUX said today in response to the SOC's accusation.
  • Starbucks stock is currently down about 20% versus its 52-week high.

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Starbucks Corp (NASDAQ: SBUX) opened slightly in the red this morning after a coalition of unions accused it of a “flawed human capital management strategy”.

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SOC blasts $SBUX for aggression against unionization

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Strategic Organisation Center is concerned that “human capital mismanagement” threatens not just the reputation but shareholder returns as well at Starbucks.

The coalition is convinced that Starbucks has “made the problem” worse with its aggressive response to unionization – and wants to nominate three of its own members to the company’s board.

SOC will file investor presentation with the SEC on Tuesday. The news arrives only weeks after Starbucks Corp reported its financial results for the first quarter that missed Street estimates.

Wall Street currently has a consensus “overweight” rating on $SBUX that’s down nearly 20% versus its 52-week high at writing.

Here’s what Starbucks said in response to the SOC today

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Since 2021, Starbucks Corp has had baristas at close to 400 of its cafes vote in favour of organizing.

Still, the multinational chain of coffee houses expressed confidence in the “world-class business leaders” on its board today as they “bring qualifications and expertise relevant to drive operations and future success”.

The Nasdaq-listed firm also revealed to have reinvested over 20% of its profit last year into “wage increases, training, and new equipment” on Tuesday.

Note that Starbucks recently lost the top spot to Luckin Coffee in China (read more). $SBUX pays a dividend yield of 2.45% at writing.

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