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Inflation pressures, tariffs, and talk of the so-called 'pumpkin spice tax' have some wondering about rising coffee prices.
The U.S., of course, grows close to zero coffee. Thus the tariff on Brazil will result solely in price increases for American coffee drinkers.
CEO Brian Niccol said price changes are his last resort for improving Starbucks' slumping sales — but they're "absolutely" on the horizon.
Still, raising prices hasn't alleviated all of the pressure for Starbucks: Even with the hikes, the company reported earnings per share of $0.69 in the quarter, lower than Wall Street's expectations.
Longer-term upside will depend on sustained improvements in traffic, clarity in brand positioning, and resilience against an ...
Coffee prices were spiking even before massive tariffs on the world's top producer took effect. They're up 14.5% from a year ago.
The raises are part of a turnaround effort that includes better service, shorter wait times and more inviting stores.
Still, raising prices hasn't alleviated all of the pressure for Starbucks: Even with the hikes, the company reported earnings per share of $0.69 in the quarter, lower than Wall Street's expectations.
Still, raising prices hasn't alleviated all of the pressure for Starbucks: Even with the hikes, the company reported earnings per share of $0.69 in the quarter, lower than Wall Street's expectations.