Rivals May Limit Starbucks’ Price Hikes

Starbucks Corp.’s customers may be in for a reprieve, as any moves to raise its coffee prices may be reined in by competitors’ choosing to not follow suit, the company said. In a quarterly filing with the Securities and Exchange Commission, Starbucks said its ability to raise prices further in response to higher wholesale coffee prices may be limited by competitive pressures if other major specialty coffee retailers do not raise their prices. At the end of May, the Seattle-based chain raised its prices for the second time this year, citing soaring coffee prices on world commodity markets. Starbucks’ inability to pass through higher coffee prices in the form of higher retail prices for beans and beverages could have an adverse effect on earnings, the company said. Starbucks’ stock rose $2.19 to close at $39.69 on Nasdaq.