STREAMING NOW: Watch Now

Starbucks launches new credit card for coffee addicts

Put it on your Starbucks card. But we're not talking about one of those gift cards.The coffee king has a new i...

Posted: Feb 1, 2018 5:49 PM
Updated: Feb 1, 2018 5:49 PM

Put it on your Starbucks card. But we're not talking about one of those gift cards.

The coffee king has a new idea to fight slowing sales -- its own Visa credit card. It'll help you build Starbucks rewards even if you're using it to buy stuff outside of the coffee shops.

Starbucks announced the new Starbucks Rewards Visa Card Thursday. It's backed by JPMorgan Chase. Starbucks first hinted last year that a new co-branded card was coming soon.

Customers can use the card at Starbucks as well as other stores that accept Visa, and they can earn points, dubbed Stars (why not Bucks?), that can be redeemed for drinks and food at more 8,000 Starbucks locations nationwide.

Cardholders will also become members of the company's Starbucks Rewards loyalty program, which already has more than 14 million people signed up.

The card will have an annual fee of $49. People who apply for the card will get a physical piece of plastic within 7-10 days of getting approved for the card. They will also get a digital version of the card immediately loaded into the Starbucks mobile app.

But Starbucks said that it and JPMorgan Chase are also working on a co-branded prepaid debit card that will launch later this year. That could attract consumers who have poor credit histories or are wary of adding on more debt.

Related: What's wrong with Starbucks?

Any moves that can potentially boost sales at Starbucks would be welcomed by investors. The company needs a caffeine jolt.

Revenue growth has started to slow in the United States. Starbucks said in its fourth quarter earnings report that sales at U.S. stores open at least a year rose just 2% -- below analysts' expectations.

CEO Kevin Johnson, who took over for Howard Schultz last year, told analysts during a conference call that demand for the company's limited-time holiday beverages, gift cards and other merchandise "did not resonate with our customers as planned."

Starbucks is also having trouble attracting new customers. All its same-store sales growth in the United States came from customers spending more. The number of actual transactions in the fourth quarter was flat.

Shares of Starbucks fell more than 4% on the disappointing earnings report and the stock is now down for the year -- missing out on the hot start for the broader market so far in 2018. Starbucks stock is also down slightly since Johnson succeeded Schultz.

Meanwhile, the S&P 500 is up 20%, while Starbucks' rival Dunkin' Brands has gained nearly 20% and the resurgent McDonald's, which has added more premium coffee beverages to its menu lately, has soared more than 30%.

West Lafayette
Clear
87° wxIcon
Hi: 87° Lo: 71°
Feels Like: 93°
Kokomo
Clear
86° wxIcon
Hi: 87° Lo: 67°
Feels Like: 91°
Rensselaer
Clear
82° wxIcon
Hi: 86° Lo: 68°
Feels Like: 87°
Fowler
Clear
82° wxIcon
Hi: 83° Lo: 69°
Feels Like: 87°
Williamsport
Scattered Clouds
84° wxIcon
Hi: 85° Lo: 70°
Feels Like: 90°
Crawfordsville
Clear
82° wxIcon
Hi: 84° Lo: 70°
Feels Like: 84°
Frankfort
Clear
83° wxIcon
Hi: 85° Lo: 68°
Feels Like: 86°
Delphi
Scattered Clouds
85° wxIcon
Hi: 88° Lo: 69°
Feels Like: 89°
Monticello
Scattered Clouds
85° wxIcon
Hi: 89° Lo: 68°
Feels Like: 89°
Logansport
Scattered Clouds
84° wxIcon
Hi: 85° Lo: 67°
Feels Like: 88°
Active Pattern Ahead
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 73287

Reported Deaths: 3036
CountyConfirmedDeaths
Marion15701725
Lake7496275
Elkhart480184
Allen3835163
St. Joseph342381
Hamilton2723104
Vanderburgh192213
Hendricks1871108
Cass17869
Johnson1741118
Porter129439
Clark120247
Tippecanoe118911
Madison94365
LaPorte89430
Howard88465
Kosciusko84712
Bartholomew78047
Marshall77422
Floyd77246
Monroe74630
Delaware71452
Dubois68712
Boone67246
Noble66329
Hancock64738
Vigo61910
Jackson5855
Warrick57930
LaGrange55710
Shelby54627
Grant52630
Dearborn49628
Morgan46734
Clinton4303
Henry37620
Wayne36810
White36110
Montgomery35221
Lawrence34227
Decatur33532
Harrison32723
Putnam2868
Miami2692
Scott26610
Daviess26420
Greene24634
Franklin24114
Jasper2342
DeKalb2304
Jennings22412
Gibson2214
Steuben2073
Ripley1997
Fayette1867
Carroll1852
Perry18412
Starke1777
Posey1700
Orange16924
Wabash1653
Fulton1642
Wells1622
Jefferson1602
Knox1510
Whitley1516
Washington1391
Tipton1379
Spencer1313
Huntington1223
Newton11810
Randolph1184
Clay1165
Sullivan1131
Adams962
Jay910
Owen871
Pulaski791
Rush764
Brown731
Fountain732
Blackford632
Ohio635
Benton610
Pike530
Parke511
Vermillion490
Switzerland460
Crawford440
Martin430
Union390
Warren221
Unassigned0202

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events