Starbucks Corp (NASDAQ:SBUX) Earnings Model
Author: Runy Calmera Published: July 29, 2023
Notes From the Model Developer: Opinion 1 is based on an administrative cost increase of 25% compared to last year. This has been inserted in the model version of July 26. This is the assumption that the potential unions ask more than only inflation (e.g 14 %) wage increase. So on top of 14% wage increase due to inflation of the past 2 years (2021 and 2022) it is assumed that the potential unions ask an additional 11%. The assumption here is that the average wage of a Barista is between 50% and 100% too low. Opinion 2: is based on and administrative cost increase of 14%. This is based on the assumption that the potential Unions of Starbucks ask only 14% wage raise compared to previous year. This means they ask the total of inflation of 2021 and 2022 in one time raise...continue reading in the attached model.
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.