Starbucks (NASDAQ:SBUX) has stayed in the news for quite a while, for its efforts to improve employee wages and work conditions, after it was included amongst the worst employers worldwide. On Thursday, the company will reveal its fiscal fourth quarter and annual earnings. As the analysts start placing their predictions, Thomas Reuters has the fourth quarter estimates at $0.74 for earnings per share and $4.23 billion in terms of revenue. And for a yearly round up, estimate is of $2.67 in earnings per share and $16.50 billion in revenue. These predictions were calculated, on the basis of the company’s last year performance figures. Starbuck (NASDAQ:SBUX)’s fourth quarter wrapped up at $3.80 billion, with $0.63 earnings per share, last year. And the 2013 round up was of $14.89 billion at $2.26 earnings per share.
Starbucks (NASDAQ: SBUX) stocks fluctuate throughout the year, from being at a peak of $80 on a 50 day moving average, to as low as $70. At this point the company has a market cap of $57 billion. Lately, Starbucks (NASDAQ: SBUX) have had a few elements that stimulated major changes in the company. Neutral ratings predicted a price target of $81, and even $91 for some.
The latest in Starbucks (NASDAQ: SBUX), that’s making news is the demand to switch to organic milk. This demand has come forth on requests of over 150,000 consumers, who are backed by an even large Facebook (NASDAQ:FB), Twitter (NYSE:TWTR) and Instagram user population. How this action will effect Starbucks (NASDAQ: SBUX), is yet to be seen. In the past, we have seen Starbucks (NASDAQ: SBUX) prices rise dramatically, so a similar response is expected with the introduction of organic milk. This may seem a little unfair to the customers who do not take milk in their coffee, and yet, they will have to pay extra.
Another important factor, which will effect Starbucks (NASDAQ: SBUX) annual wrap up is, that the company announced this month, that it plans to give the baristas and shift supervisors a raise through it multiyear investment plan. The plan further caters to increments in employee wages according to their tenure. Annual pay review will be conducted for each employee when they become eligible for a raise. Furthermore, employees will be given promotional opportunities for their hard work and support within the stores. This move came along after several debated that, Starbucks (NASDAQ: SBUX), and few other well- known outlets, are quite stingy when it came to paying wages. Since then, Starbucks (NASDAQ: SBUX) has shifted its focus on to the employees. The company has not only, increased employee wages, with additional perks and benefits, but is also working to improve work conditions for the employees. Their tipping scheme is one of the latest employee incentives. This saves the hassle of fiddling through loose change and instead, helps pay tips through a device. The new app is fairly new and has not been advertised much, however, it is expected to be introduced at each Starbucks (NASDAQ: SBUX) outlet, eventually.
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