Impact on Starbucks? Reminding what we said a couple weeks back when this spike was catching attention. Starbucks (SBUX, quote) has contracted coffee through 2014 and has 25% of 2015 needs booked, but there is a longer term impact.
Every 1% move in the price of coffee is a .01c EPS impact to Starbucks.
Starbucks, which is a core member of our Emerging Money Global EM Index (EMEGI), has traded off in sympathy with coffee in last 3 weeks despite near term insulation.
$70 is a very key level for the stock to hold. Next stop is $65.00 on a break.