What's Going On With Starbucks Shares Premarket Wednesday?

On Tuesday, Starbucks Corporation SBUX CEO Brian Niccol issued a letter stating that the company and Workers United bargaining delegates are working to create a framework for single-store contracts.

The CEO said that “I appreciate your positive feedback that our relationship – the relationship between the company and Workers United – is grounded in good faith and professionalism, and I am pleased that we are making meaningful progress towards our shared goals.”

“I’ve been clear that my goal is to make Starbucks the best place to work for every partner, in every store. This means creating a great work environment, offering strong career opportunities and providing a clear path to growth.”

“I deeply respect the right of partners to choose, through a fair and democratic process, to be represented by a union. If our partners choose to be represented, I am committed to making sure we engage constructively and in good faith with the union and the partners it represents.”

In April, the U.S. Supreme Court stated that they would hear a challenge from Starbucks against the National Labor Relations Board’s decision to reinstate fired baristas who were organizing a union.

In June, the U.S. Supreme Court reportedly sided with Starbucks in a significant ruling related to the reinstatement of seven Memphis employees who were dismissed amid unionization efforts.

Starbucks has experienced falling sales for two consecutive quarters. Customers have complained about high prices, slow app orders, and subpar food options.

The company has also faced union organizing efforts due to dissatisfaction with working conditions, pay, and benefits.

This month, Starbucks’ CEO announced plans to return the company to its roots as a community coffeehouse.

Niccol emphasized the need for comfortable seating and a clear distinction between “to-go” and “for-here” services. He acknowledged that the company has drifted from its core values and is committed to enhancing the in-store experience.

Investors can gain exposure to the stock via Opal Dividend Income ETF DIVZ and Global X Millennial Consumer ETF MILN.

Price Action: SBUX shares are down 0.16% at $94.30 premarket at the last check Wednesday.

Image via Shutterstock

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.