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Benzinga
Benzinga
Business
Rishabh Mishra

Starbucks' Growth Perks Up On Tariff Relief, Ignoring Zohran Mamdani's Boycott Calls Over Labor Strikes

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Starbucks Corp. (NASDAQ:SBUX) witnessed a dramatic shift in its fundamental outlook this week as its Benzinga Edge’s Stock Rankings’ growth metric surged to a bullish 79.63, a massive leap from just 33.02 the previous week.

Check out SBUX's stock price here.

Coffee Maker Starbucks Surges In Growth Rankings

This sharp uptick highlights a growing divergence between the coffee giant's improving financial prospects and its battered public sentiment.

While the company's momentum at 26.08 and value at 15.97 remain deeply in the red, the growth algorithm—which emphasizes recent expansion in earnings and revenue has latched onto macro-economic tailwinds that promise to boost future margins.

However, the stock's price trend remains negative across short, medium, and long-term timeframes, reflecting investor caution regarding intensifying labor disputes. Additional performance details are available here.

Benzinga Edge's Stock Rankings for SBUX.

South American Trade Deal To Lower Coffee Prices

On Nov. 14, the White House announced new trade agreements with Argentina, Guatemala, El Salvador, and Ecuador aimed at reducing tariffs on key imports, including coffee and bananas.

For Starbucks, potential tariff relief on coffee beans signals a significant reduction in Cost of Goods Sold (COGS), directly improving the earnings outlook that drives the growth score.

Simultaneously, despite headline-grabbing boycotts, consumer demand appears surprisingly resilient, noted Jonathan Maze, the editor-in-chief of Restaurant Business Magazine.

Industry data from Placer.ai revealed a 38% surge in Starbucks foot traffic following the November 13 release of the “Bearista” cup, with “Red Cup Day” sales tracking to exceed expectations.

See Also: This Major Tesla Lithium Supplier Jumps In Momentum Ranking Amid Strong Price Trend

‘No Contract, No Coffee,' Says NYC Mayor-Elect

On Nov. 13, NYC Mayor-Elect Zohran Mamdani endorsed an “open-ended” strike by Starbucks Workers United, tweeting, “No contract, no coffee” and urging a consumer boycott.

Rep. Alexandria Ocasio-Cortez also expressed solidarity with the union, which is demanding better contracts and calling for the largest strike in company history.

SBUX Underperforms Market In 2025

Shares of SBUX have fallen 9.21% year-to-date, whereas the Nasdaq Composite and Nasdaq 100 indices have returned 17.03% and 17.47%, respectively.

It closed 0.42% higher at $83.68 apiece on Wednesday. It was down 14.84% over the year. In pre-market on Thursday, the stock was 0.37% up.

The futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher on Thursday, after advancing on Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock

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