Starbucks’ higher wages to pay off

Article Excerpt

STARBUCKS CORP. $110 remains a buy for aggressive investors. The company (Nasdaq symbol SBUX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 1.2 billion; Market cap: $132.0 billion; Price-to-sales ratio: 4.8; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.starbucks.com) is a leading seller and roaster of specialty coffee. It has 33,833 outlets spread across 84 countries. The stock is down from its recent peak of $126 in July 2021, partly because the company plans to increase wages and other benefits for its U.S. employees. These moves will add roughly $1 billion to its annual costs. To put that in context, Starbucks earned $4.2 billion, or $3.54 a share, in the fiscal year ended October 3, 2021. However, these moves will help it retain workers and deter more of its stores from unionizing after employees at a Buffalo, New York, outlet recently voted to organize. Starbucks is a buy for aggressive investors. investors…