One of the biggest parts of coffee giant Starbucks’ (SBUX) plan to revive the “coffeehouse experience” is the “four minute rule,” as some call it. The idea is that it should take no longer than four minutes to go from order placed to order completed, a move which opens up the customer to take better advantage of the full experience as they spend less time waiting for their drink. But investors do not seem particularly captivated by this, and sent shares down modestly in Monday afternoon’s trading.
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Some might wonder why Starbucks specifically settled on four minutes to begin with. CEO Brian Niccol revealed as much, considering “…customer and barista expectations,” as well as “…the previous capabilities of staff before the company’s popularity exploded.” By fall 2024, around half of Starbucks’ orders took four minutes or less to execute. The half that took longer, meanwhile, were addressed with some key rule changes, as well as menu changes to simply remove the more complex items.
Starbucks also vowed to improve employee conditions, like staffing and employee hours. We have already seen some of this improvement come about with the creation of the “coffeehouse coach” position. However, some employees continue to claim that the stores are generally understaffed, and workers are underpaid. This is in spite of Starbucks’ frequent assertions to the contrary.
Valentine’s Menu Growth
Is love in the air at Starbucks? It certainly hopes so, because it has put a lot behind the pseudo-holiday. Just a couple of weeks ago, we heard about Starbucks’ Valentine’s Day special plans, and some new information has come to light about how Starbucks will say love to paying customers this year.
We had already heard about the strawberries, and the new matchas. But new reports say that raspberry syrup will also be involved, and will be part of the year-round menu as well. Further, new baked goods will also be stepping into the picture. The Dubai Chocolate Bite, the Cookie Croissant Swirl, and the Yuzu Citrus Blossom are all joining the picture, offering a bit of exotic fare to the lineup.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 13 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 2.4% loss in its share price over the past year, the average SBUX price target of $98.22 per share implies 1.79% downside risk.
