August 25, 2022

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Starbucks($NASDAQ:SBUX) has come under fire from its own employees for allegedly retaliating against workers who have been organizing to unionize. According to Reuters, the coffee chain has informed workers at two locations that their stores will be closing, a move that the coffee chain’s union says is retaliation for organizing efforts. Starbucks has blamed safety issues for the Kansas City location’s closure, but the union says that the true reason for the closures is to intimidate workers and discourage them from organizing. Do you think this will affect Starbucks’ market and earnings in the long term?

Share Price

On Wednesday, STARBUCKS stock opened at $84.8 and closed at $86.0, up by 1.6% from previous closing price of 84.7. This was in response to news that the company had closed two stores in retaliation against organizing workers. This news came as a surprise to many, as STARBUCKS has long been seen as a company that is supportive of its workers. However, it seems that the company is taking a stand against those who are trying to unionize. It is not yet clear what the long-term effects of this move will be, but it is sure to generate a lot of discussion among both workers and investors.

VI Analysis

Based on the company’s fundamentals, Starbucks appears to be a low-risk investment. The company’s financials are strong, and its business model is sound. However, there are some potential risks to consider. The company is heavily reliant on consumer spending, and if consumer confidence weakens, Starbucks could be adversely affected. Additionally, the company’s expansion plans could put pressure on its margins. But overall, Starbucks appears to be a solid investment with strong long-term potential.

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When news broke that two Starbucks stores would be closing after workers attempted to unionize, many were outraged. Some even called for a boycott of the coffee chain. Investing in Starbucks may not be the safest bet right now, as the company is facing some backlash. However, it is worth noting that Starbucks is a very large and successful company. It is possible that this incident will blow over and that the company will continue to be successful. Investors should do their own research and make their own decisions about whether or not to invest in Starbucks.

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