Starbucks (NASDAQ:SBUX), the coffeehouse chain, has indicated that it intends to resume talks with the baristas’ labor union in the U.S. to resolve a prolonged deadlock. The Starbucks Workers United union currently represents about 350 of the 9,000 Starbucks stores in the U.S. However, its efforts to win a contract have not been successful.
The union is seeking a $20-an-hour base wage and stable schedules. Starbucks has accused the union of hindering progress, stating it “has refused to meaningfully engage with the company to propose and confirm alternative dates for first bargaining sessions.”
The company has proposed bargaining with a small subset of stores in January and hopes to ratify contracts by the end of next year. The union responded to Starbucks’ efforts to resume talks, stating, “We’ve never said no to meeting with Starbucks. Anything that moves bargaining forward in a positive way is most welcome.”
What is the Future Price of SBUX Stock?
Analysts remain cautiously optimistic about SBUX stock with a Moderate Buy consensus rating based on seven Buys and 12 Holds. SBUX stock has slid by more than 2% year-to-date, and the average SBUX price target of $111.33 implies an upside potential of 15.2% at current levels.
