Starbucks hopes to cash in on holiday cheer with Red Cup Day and new drinks

Starbucks Corporation (NASDAQ:SBUX) will hold its Red Cup Day on November 14.

Starbucks (SBUX) Red Cup Day is an annual event that helps promote the holiday beverage menu. On Red Cup Day, customers who purchase a holiday drink receive a free reusable red holiday cup. In addition to the disposable cup, Starbucks (SBUX) members will also receive 25 bonus stars and other benefits year-round, including a $0.10 discount on their order if they bring the cup to use at any SBUX location.

In the past, the promotion has sparked customer interest in Starbucks’ (SBUX) seasonal favorites like the Peppermint Mocha and Gingerbread Latte, while also providing a collectible item that many fans eagerly anticipate each year. The event has become a festive tradition, often leading to long lines at Starbucks (SBUX) locations, as many customers rush to secure their cups before supplies run out.

Since Starbucks (SBUX) traffic was below expectations last year during Red Cup Day amid a few employee strikes, the chain may be able to show year-over-year traffic improvement.

Starbucks (SBUX) officially launched its 2024 holiday beverage menu on November 7. This year’s offerings include a mix of returning favorites and new items, such as the Cran-Merry Orange Refresher, which is a first for the holiday season, alongside classics like the Peppermint Mocha and Caramel Brulée Latte.

On Wall Street, Redburn downgraded Starbucks (SBUX) to Sell from Neutral on Wednesday. The firm said it ha concerns that comparable sales growth will not be able to keep up with store operating expense growth.

Shares of Starbucks (SBUX) traded flat on Wednesday at $98.80.