If you are anything like me, then you too have been watching the developments in the drone delivery sector, wondering why it is apparently still impossible in many places to order food from an Olive Garden 30 miles away and have it delivered by drone aircraft instead of driving 40 minutes to get there. Coffee giant Starbucks (SBUX) is still trying to make it happen, and is working with a new provider. The news was good enough for shareholders, who sent Starbucks shares gaining nearly 2% in Friday’s trading.
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Starbucks has been working on pilot programs and drone delivery mechanisms since at least 2021, though it seems like nothing ever really caught on. The latest effort involves Matternet, another drone delivery operation. One of the biggest questions for Matternet, as asked via an interview with Fox Business, was how exactly a drone delivers Starbucks without spilling anything.
The answer is apparently a combination of good packaging and the “gentle” use of a 20-foot tether to lower said packaging down to the ground for pickup. Interestingly, Matternet’s system is supervised by humans, but not operated by them. The system is autonomous in the way that some cars are, but still requires having a human on hand to keep the drone out of power lines or the like.
Symbolic Struggle
Meanwhile, Starbucks Workers United seems to be on the cusp of landing a major blow, despite the fact that several union shops have been closed outright recently. The first ever Starbucks in the Pike Place Market is reportedly trying to unionize, even as Starbucks and the union continue to negotiate over their first contract.
The Pike Place store often has special circumstances working there, as it is not simply a retail shop, but also something of a tourist attraction as Starbucks loyalists come to see where it all began. This in turn means more disruptive customers and more safety issues, neither of which Starbucks management seems interested in addressing. Thus, the first store is trying to unionize in a bid to get more support with its various issues.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, 12 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 20.69% rally in its share price over the past year, the average SBUX price target of $101.71 per share implies 0.91% upside potential.
