Coffee giant Starbucks (SBUX) may have hit on a genius idea, and all it took was an unlikely partnership with Mercedes-Benz (MBGAF) to do the job. Now, when you are out getting your jolt of caffeine, you can pull in and give your electric car a jolt as well with new DC fast charging stations. The oddly complementary move worked out well, and sent Starbucks shares up nearly 1.5% in Tuesday afternoon’s trading.
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The charging stations are located in Red Bluff, California, reports note, just off the I-5 highway. These are 400 kW chargers that can put an extra 300 miles on a compatible electric car in a mere 10 minutes, though that depends on which vehicle is getting charged. The good news is that many vehicles will be compatible, as each stall will offer both North American Charging Standard (NACS) and Combined Charging System (CCS) connectivity.
The idea is a sound one, though perhaps not as well-executed as some might like. After all, with Starbucks’ “third-place” plans now widely known, perhaps the chargers should have deliberately recharged at a slower rate, thus encouraging drivers to sit, relax, and let their cars charge in the background. But faster charges mean greater turnover, and that will likely be helpful.
Starbucks as a Lesson to Target?
While some might believe that Starbucks’ turnaround so far has been less than effective, there are others who are holding it up as a shining beacon of hope for other companies to emulate. In fact, one report called on Starbucks to serve as an example for, of all businesses, Target (TGT).
Starbucks found itself in the same boat as Target, with concerns growing over its “woke” connections, and making Starbucks less a welcoming third place and more a political statement. Starbucks managed to shift some of that around, putting more focus on customer experience through store renovations, improved digital operations, and revamping the menu. Though the changes have not been successful in every case, the basic blueprint is one that seems to apply to other stores.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 12 Buys, seven Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 15.37% loss in its share price over the past year, the average SBUX price target of $95 per share implies 9.18% upside potential.
