Market Overview

Starbucks Employee Benefits in China Could Also Benefit Shareholders

Starbucks (NASDAQ: SBUX) CEO, Howard Schultz, discussed the company's China strategy with Bloomberg yesterday. Schultz mentioned that by 2014 Starbucks will have more stores in China than in any other market excluding the US.

CEO Schultz also noted that the company will offer many of its employee benefit programs in China as well, which is very uncommon for a US-based corporation. Benzinga contacted a Sanford C. Bernstein analyst, Sara Senatore, to inquire about there benefits' potential impact on Starbucks' margins in China.

Senatore noted that the company's policy might put some pressure on its margins, which currently are great. However, she sees it as an excellent policy that is in-line with Starbucks' overall vision to take care of its employees and will keep turnover rates low, as high turnover rates are a widespread problem in China.

Starbucks closed yesterday at $58.81, a loss of $1.52 or 2.52% on the session. The stock has gained almost 28% year-to-date.

Posted-In: Sanford C. Bernstein Sara SenatoreAnalyst Color Long Ideas News Global Analyst Ratings Trading Ideas

 

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