Labor Coalition Nominates Three Directors to Join Starbucks Board
November 24, 2023
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Starbucks Corporation ($NASDAQ:SBUX) is a global coffeehouse chain and coffee company based in Seattle, Washington. Recently, the Labor Coalition, a partnership of organizations dedicated to promoting economic justice and racial equity, announced its nomination of three directors for Starbucks Corporation’s Board. The nominees are Carolina Paiz, executive director of the Worker’s Defense Project; James Williams, president of the Service Employees International Union; and Scott Stallings, executive director of the Southwest Workers Union. Each of these nominees brings unique experience and perspectives to the board. Carolina Paiz has dedicated her career to protecting the rights of low-wage workers and promoting policies that provide access to good jobs and fair wages.
James Williams is an expert on labor law and labor organizing, and has been a leader in the effort to raise wages and lift workers out of poverty. Scott Stallings has extensive knowledge in economic development and building bridges between corporations and communities. The Labor Coalition believes that the addition of these three directors will bring fresh perspectives to the Board of Directors, helping to create sustainable policies that protect workers and promote economic justice. It remains to be seen if their nominations will be accepted by Starbucks Corporation’s Board.
Market Price
On Wednesday, the STARBUCKS CORPORATION stock opened at $104.2 and closed at $103.4, down by 0.2% from the previous closing price of 103.7. This comes after a coalition of labor unions, led by the International Brotherhood of Teamsters, announced the nomination of three directors to join the STARBUCKS Board of Directors. The coalition includes representatives from Organization United for Respect, United Food and Commercial Workers International Union, and Office and Professional Employees International Union. The three nominees are Executive Director of the National Employment Law Project Rebecca Smith, former President and CEO of the League of United Latin American Citizens Domingo Garcia, and former Chair of the Executive Committee of the National Organization for Women Terry O’Neill. The coalition hopes that their presence on the board will lead to meaningful changes in how STARBUCKS Corporation treats its employees and invests in its workforce.
The election of these directors is a huge win for labor activists who have long criticized the company for its labor practices, which are seen as exploitative by many workers. It also signals a shift toward greater corporate accountability among large corporations. The Board of Directors will now have representation from labor interests and that could have far-reaching implications for how STARBUCKS operates in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Starbucks Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 35.98k | 4.12k | 11.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Starbucks Corporation. More…
| Operations | Investing | Financing |
| 6.01k | -2.27k | -2.99k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Starbucks Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 29.45k | 37.43k | -7 |
Key Ratios Snapshot
Some of the financial key ratios for Starbucks Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.2% | 53.6% | 16.5% |
| FCF Margin | ROE | ROA |
| 10.2% | -45.5% | 12.6% |
Analysis
GoodWhale conducted an analysis of STARBUCKS CORPORATION‘s wellbeing, and the results were very impressive. The Star Chart showed that STARBUCKS CORPORATION had a health score of 8/10, indicating a strong company with sustainable cashflows and debt. This means that STARBUCKS CORPORATION is well-positioned to ride out any potential crisis without the risk of bankruptcy. We also classified the company as a ‘gorilla’, meaning that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given its impressive performance, STARBUCKS CORPORATION is an attractive choice for many types of investors. Its strengths lie in dividend, growth, and medium profitability, while its weaknesses are found in asset management. Therefore, investors who are looking for a dividend-paying stock with strong growth potential should definitely consider STARBUCKS CORPORATION. More…
Peers
In the fast-paced world of coffee, there are always new challengers trying to take down the reigning champion, Starbucks Corp. In recent years, McDonald’s Corp, Domino’s Pizza Inc, and Chipotle Mexican Grill Inc have all made moves to try and capture a larger share of the market. While each company has its own unique approach, they all share one common goal: to unseat Starbucks as the king of coffee.
– McDonald’s Corp ($NYSE:MCD)
McDonald’s Corp is a fast food restaurant chain. The company was founded in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they introduced the Speedee Service System, which was a precursor to the fast food restaurant. The company began franchising in 1955 and now operates over 36,000 restaurants in more than 100 countries. McDonald’s Corp has a market cap of 181.34B as of 2022, a Return on Equity of -90.17%. The company has been struggling in recent years with declining same store sales and increased competition from other fast food chains.
– Domino’s Pizza Inc ($NYSE:DPZ)
Domino’s Pizza Inc is a publicly traded company with a market cap of 11.37B as of 2022. The company has a Return on Equity of -11.44%. Domino’s Pizza Inc is a pizza delivery company. The company was founded in 1960 and is headquartered in Ann Arbor, Michigan.
– Chipotle Mexican Grill Inc ($NYSE:CMG)
Chipotle Mexican Grill Inc is a American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France. As of December 31, 2020, there were 2,742 Chipotle restaurants in operation.
The company has a market cap of 42.81B as of 2022 and a Return on Equity of 27.52%. Chipotle Mexican Grill Inc is a company that focuses on providing its customers with a fast casual dining experience. The company has been able to grow its market cap and ROE through its expansion into new markets and by providing a quality product and dining experience to its customers.
Summary
Starbucks Corporation is an attractive investment opportunity for investors looking for long-term growth potential. Starbucks’ share price has seen a steady ascent in recent years, providing investors with a healthy return on their investments. The company’s strong global presence and its focus on innovation and differentiation should help it to continue to grow in the future.
