$Starbucks(SBUX)$Starbucks is trading near its historical low PE range but I believe there are significant headwinds investors should consider.

1. Unionization could lead to increasing SG&A costs and the magnitude of this increase would be unknown now

2. An impending recession means that consumer spending on $7-8 drinks will inevitably be cut hence revenue and earnings could fall

3. Starbucks is no longer a high growth companyhence should revalue to a lower PE over time

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  • ckww
    ·2022-06-23
    This is more of a luxury item. When recession comes, people will cut cost and this coffee chain will be affected.
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  • HilaryWilde
    ·2022-06-24
    Your post is very informative, thanks for sharing.
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  • MichT
    ·2022-06-23
    True to say that
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  • Hoys
    ·2022-06-24
    Good
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  • 新虎分析
    ·2022-06-24
    👍 Yes
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  • 新虎分析
    ·2022-06-24
    👍
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  • Universe宇宙
    ·2022-06-23
    [LOL]
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  • kerestia
    ·2022-06-23
    sell!
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  • GlennG1
    ·2022-06-23
    👍
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