This is a topic that I have actually been following for a long time, and it is personally dear to me. New reports say the United States Transportation Department may be planning new drone aircraft rules that will make it possible for coffee giant Starbucks (SBUX) to use drones to deliver beverages to your house directly by air. Investors proved skeptical, though, and sent shares down modestly in Wednesday afternoon’s trading.
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Secretary of Transportation Sean Duffy declared that the new rules would “…unleash American drone dominance,” and open up the possibility for drone deliveries by allowing drones to operate beyond the visual line of sight of their operators. This means that Starbucks could pack a Pumpkin Spice Latte onto a small drone aircraft, send it whizzing above the treelines, and have it park said latte right in your front yard.
The current rules require drone operators to be in constant visual contact with their drones at all times, or get individual waivers allowing for the rule to be overridden. But with the Department of Transportation pulling the plug on these rules, the government finally gets out of the way and opens up the equivalent of drone DoorDash (DASH). It also opens up drone filmmaking, drones in manufacturing, energy production and more.
The Union Hits Des Moines
Meanwhile, Starbucks faces another major task as the union comes back for more. This time, a store in Des Moines, Iowa—on Merle Hay Road, for those familiar with Des Moines geography—will be the first store in the metro Des Moines area to launch a union vote. The vote is set to be held tomorrow, August 7, and will determine whether or not they join Starbucks Workers United.
The Merle Hay store would not be the first in Iowa to go union, though; reports noted that the first was in Iowa City, followed by Davenport and Bettendorf. The 16 staffers at that Starbucks decided to pursue a union shop after “…consistent understaffing along with policy changes by Starbucks,” noted shift supervisor Jacob Scroggins.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 13 Buys, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 19.8% rally in its share price over the past year, the average SBUX price target of $100.09 per share implies 12.16% upside potential.
