adding sbux as a BEST IDEA SHORT
It's clear to me Mr. Schultz will do whatever it takes to stop the unionization of SBUX; the question becomes how much it will cost.
In today's WSJ article, "Mr. Schultz said that he wasn't anti-union, but he couldn't have built Starbucks from a handful of stores into a coffee giant with a union." He said that Starbucks needs to acknowledge that the Covid-19 pandemic has made the working environment more difficult for store employees, and the company should do more. "We haven't done enough," Mr. Schultz said. "I promise to do better." Or said another way I will spend hundreds of millions to make workers happy. With the company facing a 15% same-store sales comparison in FY2Q22 and 73% in FY3Q22, top-line headwinds are a problem. Now we are staring down the barrel of significant incremental spending to stop the unionization of SBUX.
More to come
CMG and its Endless Promotions
Yesterday, it was a burrito promotion named after an unknown Youtuber, and now it's the Metaverse! How many CMG consumers know what the Metaverse is?
Fully 52% of American adults worry that the Metaverse will lead them to neglect reality. In a new survey, most respondents showed a clear preference for technology that is at least somewhat connected to the real world. (Advertising Age) As Neil Howe said the other day, Mark Zuckerberg may soon regret renaming Facebook Meta (FB). A series of new surveys from The Harris Poll shows consumers are largely apprehensive toward the Metaverse. But that is not stopping CMG from a Metaverse promotion. CMG announced today it is launching Chipotle Burrito Builder on Roblox (RBLX), a new simulation experience that will challenge players to roll burritos in the Metaverse to earn Burrito Bucks, the brand's in-experience currency on Roblox1, starting on April 7, National Burrito Day. The first 100,000 Roblox players to successfully roll a burrito will earn enough Burrito Bucks to exchange them for an entrée code that can be used digitally.
WEN Revisions
WEN adjusting FY22 guidance following financing transaction: now sees FY22 adjusted EPS $0.82-0.86 vs prior $0.87-0.91 and FactSet $0.89 with cash flows from operations of $305-325M vs prior $320-340M and FCF $215-225M vs prior $230-240M; continues to sees global systemwide sales +6-8%, adjusted EBITDA $490-505M, and capex $90-$100M.
