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Starbucks to address reinvention plans and unionization at its Investor Day

Yahoo Finance's Brooke DiPalma discusses the benefits Starbucks announced ahead of its Investor Day and plans for pro-union workers to protest.

Video Transcript

DAVE BRIGGS: Starbucks gearing up for its annual investor day tomorrow, just days after naming its next CEO. And the company looking to push back on unionization efforts with some new announcements earlier today. Brooke DiPalma here with that story. Hey, Brooke.

BROOKE DIPALMA: Hey, Dave. How's it going? Certainly lots brewing up at Starbucks ahead of their annual investor day. Analysts here really looking out for that reinvention plan. Of course, interim outgoing CEO Howard Schultz created that in tandem with those collaborative sessions that we've seen him go to across the country. Some key tasks that, really, analysts are looking for here, that China recovery. Of course, there, sales dropped 44% due to the impact of COVID-19.

Also, as you mentioned, unionization efforts. As of August 31, 233 Starbucks stores have voted in favor of unionization. Also more recently, Governor Gavin Newsom signing that FAST Act, which creates a fast food council to weigh in on new wages and workplace restrictions. And also the remodeling of US stores. Of course, cold drinks accounting now for 75% of beverage sales in the recent quarter. And so certainly, a new way for baristas to work and essentially fulfill those orders.

But of course, this met with a response from Workers United behind that labor push. They're also getting ready for their investor day tomorrow. You can expect about 300 people from Starbucks Workers United to be protesting outside of Seattle headquarters tomorrow between the hours of, I believe around 7:00 to 9:00 AM Pacific time. Of course, here, they noted in a press release that no Starbucks retail workers had ever been invited to Investor Day, nor they were included in any policy writing for strategy planning here.

But Starbucks looking to get ahead of that today with their new savings plan with Fidelity. Also, they announced a student loan management benefit with Tuition.ai, which intends to provide tools for what is mostly college students who are baristas at Starbucks set to get ahead of those loan payments going back into effect December 31. Also out today, Starbucks Odyssey, that's a digital experience. Starbucks Workers United also saying that they are developing NFT and Web3 plans while ignoring the needs of their workforce. Back to you, Dave.

DAVE BRIGGS: All right, Brooke Di Palma will be covering that investor day for us tomorrow. Good to see you. Thank you.