Stock Market Sell-Off: Is Starbucks a Buy?
Coffee drinkers still love Starbucks (NASDAQ: SBUX). But investors haven't been as excited about the coffee shop giant in recent times. The stock has slipped more than 20% so far this year. Its performance is about in line with that of the S&P 500 Index.
Starbucks faces the challenge of inflationary pressures -- like many companies that depend on consumer spending. But, on a brighter note, Starbucks recently set out a new growth plan. So, it's fair to say the company has reached a big inflection point. Considering the stock price today and what may be ahead, is Starbucks a buy right now? Let's find out.
First, let's take a look at Starbucks' current situation. The company has faced challenges in recent times. A movement to unionize has gathered momentum among some Starbucks workers. So far, unionized stores represent only about 3% of Starbucks' total number of shops, NPR reports. But if the trend to unionize picks up speed, it could result in greater costs for Starbucks down the road. It's a point to watch.
Source Fool.com
