Starbucks Stock (NASDAQ:SBUX) Notches Up on Niccol's Lengths to Return to Office

Business Insider

3 days ago

The return-to-office (RTO) mandate is sweeping through corporate America as it reconsiders the whole idea of letting employees work remotely. Why that was suddenly a problem is a point of debate that usually brings up expensive office park locations going woefully underused. But give coffee giant Starbucks' (SBUX) CEO Brian Niccol credit; he is going to some lengths to be part of the RTO push himself. That was enough for investors to put a little more into the stock, which increased fractionally in Wednesday afternoon's trading.
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We already heard, back on Monday, about the RTO mandate, complete with a one-time cash payout for those who just could not take the idea of going back to work at Starbucks' offices. But more recently, we heard about what Brian Niccol himself was doing in response to that RTO release.
When Niccol was hired back in August, he was not required to relocate to Seattle, as most 'people leader' employees are. Starbucks offered help to set up an office near Niccol's home of Newport Beach, California, as well as the use of a corporate jet for commuting. But instead, Niccol bought a home in Seattle, and thus, physically shows up at the Starbucks offices on a fairly regular basis.
Another Union Shop to Deal With
Meanwhile, in Arizona, Starbucks has another union shop to deal with. The Ina and Oracle, Casas Adobes location has voted unanimously to become a union shop under the Starbucks Workers United banner. This brings the total of union Starbucks locations in Arizona to 11, and the total in Tucson to three. It also brings the total number to over 600 across 45 states.
Starbucks, for its part, offered a statement that sounded something like support, but made clear it was already delivering solid results. Starbucks offered a statement saying it would '…continue to work together to make Starbucks the best job in retail. Hourly partners receive pay above industry average and best-in-class benefits, together worth an average of $30 per hour for those who work at least 20 hours per week.'
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 13 Buys, 11 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 23.14% rally in its share price over the past year, the average SBUX price target of $95.64 per share implies 3.34% upside potential.