Starbucks (NASDAQ:SBUX) Coffee Co. is set to implement a series of changes to its employee benefits and wage structure, starting January 1. The company has announced an incremental pay increase for its U.S retail hourly partners, with the hike starting at 3% and higher for longer-serving employees. The current average wage at Starbucks is approximately $17.50 per hour, ranging from $15 to $24 per hour, and nearly $27 per hour when benefits are factored in.
Starting from February, these staff members will also begin accruing paid vacation time after their first 90 days of employment. This development comes as part of the coffee giant's broader strategy to expand its operations to 55,000 stores.
In addition to the pay raise and added vacation time, Starbucks is also planning to introduce its first North America Barista Championship. This initiative aims to foster a competitive spirit among its employees and further enhance their skills.
The company is also contemplating expanding its Starbucks College Achievement Plan by adding credential and certification programs. The existing plan currently supports 23,000 employees in earning their initial bachelor’s degree.
Through its annual Bean Stock grants, Starbucks has provided over $2 billion in additional earnings to its employees. This program forms part of the company's broader approach to employee benefits and compensation.
The announcement of these initiatives was followed by a modest uptick in Starbucks' stock value, with a 0.6% increase observed in premarket trading on Monday.
InvestingPro Insights
Starbucks (SBUX) has been showing promising performance as per InvestingPro data and tips. With a market capitalization of $117.29 billion and a P/E ratio of 28.67, the company's financial stability is evident. Over the last twelve months as of Q4 2023, Starbucks has seen a revenue growth of 11.55%, reflecting the company's ability to generate profits.
InvestingPro Tips highlight that Starbucks has a perfect Piotroski Score of 9, indicating strong financial health and operational efficiency. The company's revenue growth has been accelerating, and it has raised its dividend for 14 consecutive years, which is a positive signal for investors. Additionally, 6 analysts have revised their earnings upwards for the upcoming period, indicating potential for further growth.
InvestingPro offers additional tips and insights for those interested in further analysis. For instance, the platform provides data on the company's return on assets, its position within the Hotels, Restaurants & Leisure industry, and its debt levels. These data points can provide deeper understanding of the company's financial position and future prospects.
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