Article Review – Starbucks Product Recalled for Possible Salmonella

On October 15th, 2012 the Barrington Patch posted an online article about Starbucks. The article brings up the issue that Starbucks product, including Honey Peanut Butter, and Protein Bistro Boxes, are being recalled from their stores in varies states around the United States. The recall, as the title states is because of a possibility of salmonella contaminating the food. The article quotes an article directly from the FDA that talks about the exact details of the recall and give background to what salmonella is and the risks that come with food having salmonella. Surely this has an effect on the market value of Starbucks as a whole because it will do two main things: reduce the net revenue that the store will gain as well as increase their expenses. Their net revenue will be down because while the products are off the shelves waiting to be restocked. Their expenses will increase because they now have to pay for a whole new shipment of the recalled products to all of the stores that were included in the article.

http://barrington.patch.com/articles/starbucks-product-recalled-for-possible-salmonella-2230381e

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Article Review – Starbucks Tea Deal Develops Aftertaste

This article, publicized in the Wall Street Journal on December 9th, 2012 is about Starbucks and it’s move to acquire the small business Teavana Holdings Inc. Starbucks had already acquired the Tazo Tea brand from this same company back in 1999 for $9 million. This new reported deal would be worth $620 million which would be the largest ever acquisition by Starbucks. There has been a lot of speculation by analysts to whether or not this is a smart move for Starbucks. Most analysts think that Starbucks has better options within the global tea market. Starbucks’s CEO Howard Schultz is staying with the stance that “the two brands can help drive customers to one another by uniting their customer loyalty programs, social-media efforts and mobile applications.” Starbucks also believes that “Teavana’s moneymaking potential from its current form is a big plus.” In the long run I think this deal will have a positive effect on Starbucks as a company as well as the market value of the company.

http://online.wsj.com/article/SB10001424127887324640104578165202798136008.html

Comparing Canadian and U.S. Banking Systems

Article Link

This is an article that I found very interesting to read when I first came across it. The article looks at the Canadian economy, more specifically the Canadian banking system, and compares it to the banking system we have here in the United States.
I personally found it very interesting especially with the state of our economic state of our country. This article gives a good example that I believe our government should look at and try to take idea from to strengthen and stabilize our banking system.

Here are a few key quotes:

the Canadian dollar — the “loonie” — which is up more than 55 percent against the U.S. dollar in the last ten years.

you can’t have a healthy economy if you have a sick financial system. The fact is that the Canadian banking system has not suffered a serious crisis since the 1930s. Compare that to the pattern of rapidly recurring crises that have rocked the U.S. banking system since the 1980s.

Canada ranked a lowly 18th out of 21 industrialized nations in the share of its banking market held by foreign banks.

Article Review #1

This is an assignment for one of my courses ad I just figured I would post it here. I may or may not continue doing more of these, but we will see if the future!

Article Title (link): Yum says equipped to navigate China’s “ups and downs”

On October 10th, 2012, Reuters online news source posted an article about Yum Brands, Inc. and their condition with the Chinese economic situation. This article talks about how Yum Brands, Inc., back in October, stated that they were still feeling confident that they would be able to deliver consistent sales and operating profits. This is a crucial factor to the operation of Yum Brands because China represents the biggest market for sales and profit for them. This relates to the stocks of the company because along with this confidence statement the company also “raised its full-year profit forecast due to better-than-expected third-quarter earnings that were driven by solid results from China and the United States.” October 10th also happened to be one of the days that I recorded the market value of YUM stocks and it was $70.99, roughly a 6% jump in price from the two days prior price of $66.94. Since this point in time the stock value has continually increased with limited to no decline in value. Even with the poor and slowing economic growth at the time in China, YUM Brands still is predicting a double-digit profit growth in the fourth quarter of their fiscal year. A stat that I found quite interesting and surprising was that the development plan for Yum Brands in China is to open, on average, two new restaurants per day. In the end, all of this seems to point to a continual increase in the stock value for Yum Brands, Inc.