A ransomware attack on one of Starbucks (SBUX) software vendors has disrupted the retail coffee chain’s North American operations.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
According to media reports, staff at Starbucks are not able to view and manage their work schedules due to the ransomware attack. Management at Starbucks said it is working with the software vendor to resolve the issue as quickly as possible.
The ransomware attack was on Blue Yonder, one of the world’s largest supply chain software providers, and a major Starbucks vendor. The outage is negatively impacting Starbucks’ employee schedules and ability to track the hours they’ve worked. Starbucks says that it will ensure all employees receive proper compensation for the hours they work.
A ransomware attack typically involves a type of malicious software that’s designed to block access to a computer system until a sum of money, or ransom, is paid.
The Latest Setback at Starbucks
The impact from the ransomware attack is the latest setback for Starbucks, which has struggled in recent years with a slowdown in sales, a consumer backlash, and a CEO shake-up. News of the problems with employee schedules also comes as many Starbucks stores move to unionize their workers.
Starbucks says that the ransomware has not interrupted its ability to serve customers. The coffee chain is the latest well-known company to be negatively impacted by a ransomware attack. So far this year, more than 2,300 incidents of ransomware have been reported, according to the Office of the U.S. Director of National Intelligence. That makes 2024 one of the worst years on record for such attacks.
SBUX stock has risen 9% so far this year.
Is SBUX Stock a Buy?
Starbucks’ stock has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on 15 Buy, six Hold, and four Sell recommendations issued in the last three months. The average SBUX price target of $102.32 implies 0.52% upside from current levels.
