With eight stores within a two mile radius of Carlyle, surely a few of you drink Starbucks.
Starbucks Corp (SBUX.O) raised prices by an average of about 1 percent in the U.S. Northeast and Sunbelt on Tuesday, making coffee-drinkers spend more in New York, Boston, Washington, Atlanta, Dallas, Albuquerque and other cities.
Shares of Starbucks, which boosted drink prices in some other U.S. markets in November, retreated to $45.30, down 1.5 percent, after hitting a new high of $47.04 in early trading.
Starbucks expects high costs for things like coffee, milk and fuel to cut into profits this year. Like other restaurant operators ranging from Chipotle Mexican Grill (CMG.N) to McDonald’s Corp (MCD.N), it is raising prices to help offset some of that cost pressure.
“They’re trying to protect their profits and margins. Everyone else is doing it, so why not they?” said Edward Jones analyst Jack Russo.
Starbucks “can do this and get away with it given their presence in the coffee industry and the positive brand equity that the Starbucks name brings,” Russo said.
In New York City, the price for 12-ounce “tall” brewed coffees and latte drinks went up 10 cents. Prices on about half a dozen other beverages also were set to increase, Starbucks spokesman Jim Olson told Reuters.
The world’s biggest coffee chain raised prices on some drinks in California and South Florida in November, so those markets were not affected by Tuesday’s hikes. The Pacific Northwest, the Midwest and Hawaii also saw prices go higher in that November round.
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