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Starbucks has seen nearly $12 billion erased from its market value during the past month as sales reportedly have slowed amid tighter consumer wallets and growing labor strife — with some even speculating the chain has been hit by boycotts over the Israel-Gaza war.

Investors have grown wary that consumers will splash out on a pricey cup of joe during the holiday season when budgets get tighter, according to Bloomberg, citing sales data from JPMorgan analysts that signaled a material slowing at Starbucks in November.

Despite delivering better-than-expected sales growth of 8% in its fiscal fourth quarter, the coffeehouse’s share price has decelerated on a week-over-week basis, following trends in the snack and coffee industry.

When the markets opened on Monday, Starbucks’ stock dropped 1.6%, declining for a 11th consecutive session in what is the longest losing streak since Starbucks public debut in 1992. 

The rout erased 9.4% of Starbucks market value, a decline of nearly $12 billion.

As of early trading hours Thursday, the Seattle-based company’s share price was down roughly 6.5%, to $96.90, on a monthly basis.

When the coffeehouse chain’s share price started to decline, it was putting on its annual Red Cup Day.

The promotional event saw baristas handing out free red-colored, reusable, holiday-themed cups to customers on their coffee purchases on Nov. 16, though the festivities were overshadowed by a walkout.

Hundreds of workers represented by the Workers United union walked off the job on the notoriously busy day — demanding improved staffing and schedules — while non-unionized staffers endured one of the most infamously hard, understaffed days, as drink orders pile up and employees end up on the receiving end of abuse from frustrated customers over long wait times.

The protest was just the latest in Starbucks’ deep-rooted disagreements with the union.

Last month, the two entities filed warring lawsuits over the union’s social media post declaring “Solidarity with Palestine!” in the wake of Hamas deadly attacks.

After Workers United published the controversial statement in a since-deleted post on X last month — where it boasts nearly 100,000 followers — Starbucks swiftly moved to distance itself from the organization.

We unequivocally condemn acts of terrorism, hate and violence, and disagree with the statements and views expressed by Workers United and its members. Workers Uniteds words and actions belong to them, and them alone,” Starbucks said at the time.

The response was interpreted as a display of support for Israel over Palestine, prompting calls for a boycott. Despite Starbucks’ efforts to quell boycott calls, the hashtag #boycottstarbucks is still trending on social media.

According to TikTok’s Creative Center, a database that details user insights, the hashtag has been used in some 16,000 times over the past 30 days, generating a combined 167 million views.

On X, other social media users appear to be cheering Starbucks’ decline.

“I haven’t gone to Starbucks in months due to the boycotts and I am so happy to see less people there too,” a user who goes by Kate wrote.

“WE WON,” another chimed in while a slew of commenters said the slash in market cap was “deserved.”

When The Post reached out to Starbucks for comment, a company spokesperson pointed to a message from its chief partner officer, Sara Kelly, posted on Starbucks’ website last month.

“Starbucks unequivocally condemns acts of hate, terrorism and violence,” Kelly wrote. “As a leadership team, we want to again express our deepest sympathy for those who have been killed, wounded, displaced and impacted following the heinous acts of terror, escalating violence and hate against the innocent in Israel and Gaza.”

Though Starbucks’ total value was down, its store sales at its 35,000-plus locations worldwide rose 8% for its 2023 fiscal year that ended in November.

Earlier this month, Starbucks said it would raise hourly pay for its US retail workers by at least 3% from 2024 after Workers United’s repeated pleas to give baristas an increased hourly base wage.

Staffers affiliated with Workers United which represents Starbucks staffers at 340 Starbucks locations across the US criticized the increase, calling it tone deaf given Starbucks recently-reported increases in revenue and the recent wage hikes won by auto workers.

Meanwhile, one of union’s founding organizers, Jaz Brisack, has previously voiced support for Palestinian terrorist Rasmea Odeh, who was involved in bombings in Jerusalem in 1969 and 1970.

Brisack penned an op-ed in the Daily Mississippian in 2017 that referred to Odeh as a political prisoner.

Odeh was freed by Israel as part of a prisoner exchange in 1980 but arrested in the US in 2013 after illegally entering the country in the 1990s.

She was deported to Jordan in 2017.

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Politics

Rishi Sunak apologises to infected blood scandal victims and says it is ‘day of shame for British state’

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Rishi Sunak apologises to infected blood scandal victims and says it is 'day of shame for British state'

Prime Minister Rishi Sunak has offered a “wholehearted and unequivocal” apology to the victims of the infected blood scandal, saying it was a “day of shame for the British state”.

Mr Sunak said the findings of the Infected Blood Inquiry’s final report should “shake our nation to its core”, as he promised to pay “comprehensive compensation to those infected and those affected”, adding: “Whatever it costs to deliver this scheme, we will pay it.”

The report from the inquiry’s chair Sir Brian Langstaff blamed “successive governments, the NHS, and blood services” for failures that led to 30,000 people being “knowingly” infected with either HIV or Hepatitis C through blood products. Around 3,000 people have now died.

The prime minister said for any government apology to be “meaningful”, it had to be “accompanied by action”.

Politics live: Thatcher’s health secretary ‘disparaging’ to infected blood victims

Speaking in the Commons, Mr Sunak called it a “calamity”, saying the report showed a “decades-long moral failure at the heart of our national life”, as he condemned the actions of the NHS, civil service and ministers – “institutions in which we place our trust failed in the most harrowing and devastating way”.

The prime minister said they “failed this country”, adding: “Time and again, people in positions of power and trust had the chance to stop the transmission of those infections. Time and again, they failed to do so.

“I want to make a whole-hearted and unequivocal apology for this terrible injustice.”

Victims and campaigners outside Central Hall in Westminster.
Pic; PA
Image:
Victims and campaigners outside Central Hall in Westminster.
Pic: PA

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Pointing to key findings in the report – from the destruction of documents through to failures over screening – Mr Sunak said there had been “layer upon layer of hurt endured across decades”.

He also apologised for the “institutional refusal to face up to these failings and worse, to deny and even attempt to cover them up”, adding: “This is an apology from the state to every single person impacted by this scandal.

“It did not have to be this way. It should never have been this way. And on behalf of this and every government stretching back to the 1970s, I am truly sorry.”

Labour leader Sir Keir Starmer also apologised for his party’s part in the scandal, telling the Commons: “I want to acknowledge to every single person who has suffered that in addition to all of the other failings, politics itself failed you.

“That failure applies to all parties, including my own. There is only one word, sorry.”

Read more:
100 faces of the infected blood scandal
Analysis: Report makes for difficult reading – but vindicates victims
The day as it happens as ‘chilling’ cover-up laid bare

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Infected blood victims ‘betrayed’ by NHS

In his report, released earlier on Monday, Sir Brian issued 12 recommendations – including an immediate compensation scheme and ensuring anyone who received a blood transfusion before 1996 was urgently tested for Hepatitis C.

He also called for compensation – something Mr Sunak said would come and would be outlined in the Commons on Tuesday.

But speaking to Sky News’ Sarah-Jane Mee, he warned the “disaster” of the scandal still wasn’t over, saying: “More than 3,000 have died, and deaths keep on happening week after week.

“I’d like people to take away the fact that this is not just something which happened. It is happening.”

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Inquiry chair Sir Brian Langstaff spoke to Sky’s Sarah-Jane Mee.

Sir Brian said what had happened to the victims was “no accident”, adding: People put their trust in the doctors and the government to keep them safe. That trust was betrayed.

“And then the government compounded the agony by repeatedly saying that no wrong had been done.”

But he hoped the report would ensure “these mistakes are not repeated”.

He told Sky News: “We don’t want another 30,000 people to go into hospital and come out with infections which were avoidable, which are life-shattering, which were no accident.

“And we don’t want the government to end up being defensive about them – but instead to be candid [and] forthcoming in the ways which I’ve just suggested.”

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Environment

Toyota announces nationwide dealer rollout of Tern Class 8 electric semi

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Toyota announces nationwide dealer rollout of Tern Class 8 electric semi

Launched as a joint venture between Toyota Group and Tier 1 supplier Hexagon Purus, the new Tern brand of heavy duty electric trucks announced Hino Trucks as its exclusive US distributor.

Another Toyota Group brand, Hino Trucks nevertheless brings a nationwide network of more than 200 heavy truck dealers (and their customers) to the new JV with Hexagon, which is specifically focused on electrifying “practical” commercial vehicle applications.

Glenn Ellis, President and CEO of Hino Trucks, expressed enthusiasm about the partnership. “Our collaboration with Hexagon Purus introduces a highly reliable Class 8, 4×2 tractor option into the electric truck market, catering to a wide range of applications,” he explained. “We are excited to be the exclusive distributor for Tern with an initial distribution focus in California, where fleet electrification is imperative.”

Tern RC8 electric semi

The new Tern RC8 electric truck offers a 68,000 lb. GVWR, 680 peak horsepower electric motor (494 continuous), a 200 mile range, and the ability to go from 0-80% charge in less than two hours at 240 kW. Energy comes from dual Hexagon Purus Gen3 269kWh battery packs in a 750-volt, 538 kWh configuration.

The announcement coincides with California’s Advanced Clean Fleets regulation, and was made today at the ACT Expo, which is taking place this year in the West Hall of the Las Vegas Convention Center. Serial production for the Tern RC8 is scheduled to begin later this year.

Electrek’s Take

Tern RC8 electric semi truck; via Hino Truck.

It’s hard to act surprised that a Toyota brand is going to be supported by Toyota’s existing dealer network, but it’s worth noting that, while Toyota is marketing/lobbying against EVs on the one hand, it’s quietly investing big bucks into battery electric on the other.

My guess: as soon as Toyota has a viable BEV on the market, they’ll “suddenly” realize that BEVs were the way to go all along. #bet

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Politics

SEC rumored to be reconsidering spot Ether ETF denial, say analysts

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SEC rumored to be reconsidering spot Ether ETF denial, say analysts

ETF analysts James Seyffart and Eric Balchunas said they had increased their odds of the SEC approving a spot Ether exchange-traded fund from 25% to 75%.

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