Data Breach Hits Starbucks, Leaves Shoppers Untouched: Starbucks Stock (NASDAQ:SBUX) Notches Down

There was good news and bad news for coffee giant Starbucks SBUX -0.32% ▼ recently, as a data breach hit the company about six weeks ago. The good news is that most customers will likely never notice. The bad news is that Starbucks partners likely will. The breach hit Partner Central, causing one more problem for Starbucks employees. Investors, though, were relatively unconcerned, and sent shares slipping fractionally in Monday afternoon’s trading.

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Partner Central is Starbucks’ hub for employee data, which has access to payroll and benefits data along with the personal information of its employees. Reports noted that the hackers landed the information required to breach Partner Central by setting up a fake website and collecting it from information entered into the fake. With that information, the hackers could enter the real Partner Central.

Starbucks detailed the full extent of the breach to employees in an email, noting, “Based on our investigation, we understand that some of your personal information, including your name and social security number, date of birth, and financial account number and routing number, may have been accessed by an unauthorized third party.” Starbucks is offering free identity protection services and is cooperating with law enforcement.

More From the Union

Meanwhile, Starbucks’ union released a little more information about the contents of its latest proposed contract. We found out some of this recently, but got a little more insight since. We knew about the starting wage of $17 per hour, and the annual raises of 4% as well as the requirement that there be three baristas on hand at all times, minimum.

But we also got word of new features, including protections for union baristas against “…discrimination, unjust firings and temporary or permanent store closures.” The union also wants a union-enforced dress code, a workplace grievances resolution process, a requirement that open hours be offered to current staff before hiring new staff, and the resolution of “…hundreds of outstanding unfair labor practice charges.”

Is Starbucks Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 0.07% rally in its share price over the past year, the average SBUX price target of $101 per share implies 2.13% upside potential.

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