It turns out that pot pies are not the only products jumping on the recall bandwagon this morning. Starbucks reported late yesterday that 25,000 plastic children's cups are being recalled after it was found that they pose a choking hazard. The cups which, in case you were wondering, are in fact made in China can break when dropped, and the shattered pieces become a choking and laceration hazard to youngsters.
Starbucks said it's aware of 2 incidents of children choking on broken cup pieces, and 7 cases where the cups broke. The affected products are the Dot Red Ladybug, Dash Green Turtle, Bunny Pink, and Chick Yellow cups.
After closing on a fractional gain yesterday, SBUX is marginally lower in today's trading. The equity has wilted under pressure from its 10-week and 20-week moving averages since last October, as the coffee chain faces steep commodity prices and increased competition from heavy-hitters like McDonald's (MCD).
Unfortunately, there's still plenty of room for more investors to migrate to the bears' camp. The stock's Schaeffer's put/call open interest ratio of 0.8 reveals that calls still outnumber puts on the underperforming equity, and ranks lower than 73% of other such readings taken during the past year. Additionally, short interest decreased by about 7% last month, and now accounts for just 3.5% of the stock's available float.