In the interview Shultz said Starbucks has no plans to increase coffee prices despite the rising commodity cost. "I suspect coffee prices might go up even higher, Shultz said. "We will anticipate that and most importantly, we can manage through it. We do not have any intention at this time to raise prices."
Thanks to its forward pricing strategy Starbucks is protected against higher prices.
The CEO also discussed a "seismic shift" in mobile payments. Starbucks is a retail leader in mobile payments with about 10 million customers using its mobile payments app. Shultz hinted at new initiatives coming in 2014, though he made no specific announcements.
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TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."