Starbucks (SBUX) Price Increase
Many people complain about the high cost of Starbucks (NASDAQ: SBUX) coffee; however, now they will have even more reason to complain.
The company has recently released that some prices will increase up to 35 cents. This price increase will apply to more "complex" drinks.
New Yorkers are now paying $4 for a tall mocha latte, since this beverage falls into the complex category. However, prices are not going up everywhere, just in large markets throughout the United States and Canada. New York, California, and D.C. are a few of the places seeing these increases.
This may be a dangerous move by Starbucks since sales have declined over the last two years as other companies such as McDonald's (NYSE: MCD) offer cheaper brands during a tough economy.
Personally, I would not recommend investing in Starbucks with their recent price increase and their obvious decline in sales.
Shares were down 1.19% at the end of the day Friday.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.