UN Experts Raise Concerns Over Starbucks Union Practices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 30 minutes ago
0mins
Should l Buy SBUX?
Source: Newsfilter
- Union Activity Allegations: UN human rights experts have sent a letter to Starbucks and the U.S. government alleging a years-long campaign of threats and harassment against employees seeking to unionize since 2021, potentially violating international laws on freedom of expression and assembly.
- Negotiation Developments: Negotiations between Starbucks and its unionized baristas, representing 4% of U.S. stores, broke down in early 2025 but have recently resumed, although the company has accused the union of limited engagement and filed a complaint with U.S. labor regulators.
- Shareholder Support: Despite warnings from shareholder proxy firms about potential financial and reputational risks from labor disputes, Starbucks received overwhelming support from shareholders in a recent vote, indicating confidence in the company's approach to labor relations.
- Role of Human Rights Experts: The letter was issued by four independent experts appointed by the UN Human Rights Council, highlighting the international scrutiny on Starbucks regarding its union practices, even though these experts do not officially represent the UN.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 105.950
Low
59.00
Averages
96.12
High
115.00
Current: 105.950
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UN Experts Raise Concerns Over Starbucks Union Practices
- Union Activity Allegations: UN human rights experts have sent a letter to Starbucks and the U.S. government alleging a years-long campaign of threats and harassment against employees seeking to unionize since 2021, potentially violating international laws on freedom of expression and assembly.
- Negotiation Developments: Negotiations between Starbucks and its unionized baristas, representing 4% of U.S. stores, broke down in early 2025 but have recently resumed, although the company has accused the union of limited engagement and filed a complaint with U.S. labor regulators.
- Shareholder Support: Despite warnings from shareholder proxy firms about potential financial and reputational risks from labor disputes, Starbucks received overwhelming support from shareholders in a recent vote, indicating confidence in the company's approach to labor relations.
- Role of Human Rights Experts: The letter was issued by four independent experts appointed by the UN Human Rights Council, highlighting the international scrutiny on Starbucks regarding its union practices, even though these experts do not officially represent the UN.
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- Earnings Estimate Boost: TD Cowen increased its earnings per share estimate for Starbucks to $3.94 by fiscal 2028, a 9% rise above the consensus of $3.65, indicating the company's potential in cost control and sales growth.
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- Starbucks Price Target Upgraded: TD Cowen raised Starbucks' price target from $106 to $120, citing multiple tangible drivers for positive sales revisions in a strong market backdrop, and forecasting margin recovery as labor investments are prioritized.
See More
UN Experts Raise Concerns Over Starbucks Union Practices
- Union Activity Allegations: UN human rights experts have sent a letter to Starbucks and the U.S. government alleging a years-long campaign of threats and harassment against employees seeking to unionize since 2021, potentially violating international laws on freedom of expression and assembly.
- Negotiation Developments: Negotiations between Starbucks and its unionized baristas, representing 4% of U.S. stores, broke down in early 2025 but have recently resumed, although the company has accused the union of limited engagement and filed a complaint with U.S. labor regulators.
- Shareholder Support: Despite warnings from shareholder proxy firms about potential financial and reputational risks from labor disputes, Starbucks received overwhelming support from shareholders in a recent vote, indicating confidence in the company's approach to labor relations.
- Role of Human Rights Experts: The letter was issued by four independent experts appointed by the UN Human Rights Council, highlighting the international scrutiny on Starbucks regarding its union practices, even though these experts do not officially represent the UN.
See More
Starbucks Stock Rises After Upgrade by TD Cowen
- Upgrade Impact: TD Cowen upgraded Starbucks from hold to buy, raising the price target from $106 to $120, indicating that the company's turnaround is ahead of schedule, which could drive further stock price increases.
- Sales Forecast Increase: Analysts raised North America's same-store sales forecasts for 2026 to 2028 to 6.1%, 5%, and 4%, respectively, exceeding Wall Street consensus, reflecting market confidence in Starbucks' future growth.
- Earnings Estimate Boost: TD Cowen increased its earnings per share estimate for Starbucks to $3.94 by fiscal 2028, a 9% rise above the consensus of $3.65, indicating the company's potential in cost control and sales growth.
- Cautious Market Sentiment: Despite the upgrade, analysts remain cautious about Starbucks, noting the need to restore historical margins, with fewer than half of analysts rating the stock as buy, highlighting concerns over its profitability recovery.
See More
Major U.S. Indexes Rally, Cybersecurity Stocks Hit All-Time Highs
- Market Rally: Major U.S. indexes rebounded on Thursday, with the Dow reclaiming 50,000 points, driven by a significant U.S.-China meeting and a strong earnings report from Cisco Systems, indicating renewed investor confidence in economic recovery.
- Cybersecurity Stocks Surge: Cybersecurity stocks, including Palo Alto Networks and CrowdStrike, continued their upward trajectory on Thursday, reaching all-time highs, reflecting market trust in their ability to leverage advanced AI models to enhance product security.
- Consumer Stock Pullback Opportunity: With rising gas prices and inflation pressures, consumer stocks have struggled recently; however, Jim Cramer believes the recent pullback in TJX Companies presents a potential buying opportunity, as its value-focused model is likely to benefit from price-conscious shoppers.
- Rapid Fire Review: Stocks mentioned in Thursday's rapid-fire segment included Starbucks, FedEx, Solstice, and Wells Fargo, highlighting the market's interest in a diversified portfolio, with Jim Cramer's charitable trust holding multiple stocks, further boosting investor confidence.
See More
Bitcoin-Linked Stocks Rise as Starbucks Gets Upgrade
- Bitcoin-Linked Stocks Rise: Bitcoin rose 2% as the Senate Banking Committee discussed a regulatory framework for cryptocurrencies, with Coinbase shares jumping nearly 9%, indicating growing market confidence that could drive future growth for related companies.
- Starbucks Upgrade: TD Cowen upgraded Starbucks from hold to buy, raising its price target from $106 to $120, with analysts noting multiple positive sales drivers in a strong market backdrop, suggesting improved performance ahead.
- Ford Stock Surge: Ford shares rose 7%, adding to a 13% gain from Wednesday, as Morgan Stanley highlighted its energy storage business and partnership with CATL, projecting a $3 billion incremental revenue opportunity for Ford's Model e segment.
- Applied Materials Earnings Outlook: Applied Materials saw a 2% increase in shares ahead of its fiscal second-quarter results, with analysts expecting earnings of $2.66 per share and revenue of $7.68 billion, reflecting sustained optimism about semiconductor equipment demand.
See More
Key Market Highlights for Today
- Cerebras IPO: Cerebras Systems successfully raised $5.5 billion in its IPO today, focusing on ultra-fast AI chip processing, with OpenAI committing to purchase its computing capacity, indicating strong market demand for efficient AI computing.
- Cisco's Strong Quarter: Cisco reported a blowout quarter with robust data center performance, sending shares up nearly 15% in premarket trading, reflecting massive demand for networking equipment and underscoring the ongoing growth in AI spending, enhancing the investment case for data center stocks.
- Dell Price Target Increase: Citi raised Dell's price target from $235 to $290 ahead of its earnings report, anticipating continued strong performance in the server market; despite rising memory costs, Dell's scale and pricing agility are expected to provide competitive advantages.
- Broadcom Price Target Boost: Wells Fargo increased Broadcom's price target from $430 to $545, significantly raising AI chip revenue forecasts, highlighting the underappreciated potential in its networking segment, which could drive stock price appreciation.
See More
Latest Wall Street Rating Updates
- Nvidia Price Target Raised: UBS raised Nvidia's price target from $245 to $275, anticipating first-quarter revenue around $81 billion, suggesting a $3 billion beat against market expectations, highlighting the company's robust growth potential in the AI sector.
- Amazon Alexa Shopping Advantage: Bank of America reiterated its buy rating on Amazon, stating that the new Alexa for Shopping will replace Rufus, leveraging personalized recommendations to enhance user experience and further solidify Amazon's leadership in the e-commerce market.
- Apple Stock Price Target Increase: Evercore raised Apple's price target from $330 to $365, projecting that even with modest iPhone unit growth, the company can achieve low to mid-teens EPS and free cash flow growth due to durable services growth and ASP tailwinds from premium models.
- Starbucks Price Target Upgraded: TD Cowen raised Starbucks' price target from $106 to $120, citing multiple tangible drivers for positive sales revisions in a strong market backdrop, and forecasting margin recovery as labor investments are prioritized.
See More
