In this article
Michelle Eisen, a barista at the Buffalo, NY, Elmwood Starbucks location, the first Starbuck location to unionize, helps out the local Starbucks Workers United, employees of a local Starbucks, as they gather at a local union hall to cast votes to unionize or not, Wednesday, Feb. 16, 2022, in Mesa, Ariz.
Ross D. Franklin | AP
When Starbucks announced Howard Schultz would return to the company as interim CEO, investors cheered. His first tenure as chief executive turned the company into a global brand and his second, years later, revived both the business and its stock price.
But the applause has since quieted as Wall Street forecasts that the coffee giant will keep spending money in its effort to stem a unionization tide.
The stock has slid 12% since Schultz took the reins on April 4, dragging the company’s market value down to $92.2 billion. The S&P 500 fell just 2% in the same time period. Wedbush Securities and Citi Research both downgraded shares to neutral ratings in April, citing the labor situation and other concerns.
The coffee chain’s shares have underperformed the S&P 500 since Schultz’s return on April 4.
Chart
Line chart with 2 lines.
The chart has 1 X axis displaying Time. Range: 2022-04-04 09:30:00 to 2022-04-20 15:55:00.
The chart has 1 Y axis displaying values. Range: 0 to 5000.
Created with Highcharts 9.0.1Apr 5Apr 7Apr 11Apr 13Apr 18Apr 2001k2k3k4k5kcnbc.com
End of interactive...
Amid a swirl of public speculation and growing concern, the Youth Employment Agency (YEA) has firmly rejected claims that it spent a staggering GH9 million on a turkey berry production project, de...