Starbucks to boost hourly employee pay by 3%

TheStreet's J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Monday, November 6. 

Full Video Transcript Below:

J.D. DURKIN: I'm J.D. Durkin - reporting from the New York Stock Exchange.

Stocks were in the red to close out today's session. The Dow closed lower, the Nasdaq closed down, and the S&P closed in negative territory. Markets are losing momentum after last week's rally saw all three major averages notch their best week of the year.

This week is a quieter one on Wall Street. Investors are looking ahead to several speeches from Fed officials, including Chair Jerome Powell, as well as the last of the big earnings reports with names like Disney, Uber, and Lyft.

In other news - after Starbucks brought in record revenue of almost $36 billion in 2023, the company announced it will be giving its hourly employees a raise in 2024.

Starting January 1, hourly workers will get a pay bump of at least 3 percent, with longer-tenured employees seeing bigger raises. Those who have been with the company for two to five years will be eligible for a 4 percent increase, while employees with five or more years of service will get a 5 percent raise.

Starbucks released a statement saying, "Coupled with higher wages and the expansion of hours, these investments have not only resulted in lower turnover but have also increased hourly total cash compensation by nearly 50% since fiscal year 2020."

Based on its 2020 levels, Starbucks plans to double the incomes of its hourly employees by the end of 2025. The company also aims to increase the number of stores worldwide from 38,000 to 55,000 by 2030.

That'll do it for your daily briefing. From the New York Stock Exchange, I'm J.D. Durkin with TheStreet.