this post was submitted on 30 Apr 2024
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Starbucks shares sink 12% as coffee chain slashes 2024 forecast amid same-store sales drag (www.cnbc.com)
submitted 10 months ago* (last edited 10 months ago) by Linkerbaan to c/business
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Shares of the company fell 12% in extended trading.

“In a highly challenged environment, this quarter’s results do not reflect the power of our brand, our capabilities or the opportunities ahead,” CEO Laxman Narasimhan said in a statement. “It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us.”

In the U.S., same-store sales decreased 3% as traffic sank 7%. This marks the second quarter that the company’s home market has struggled. Last quarter, executives blamed sluggish sales on boycotts targeting the company due to “misperceptions” of its stance on Israel.

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[–] 13esq 3 points 10 months ago (1 children)

McDonald’s, PepsiCo and other companies have said this quarter that low-income consumers have pulled back their spending

People are poorer. Maybe if that starts to affect the bottom line for shareholders we can expect to see some progressive economic policies put forward, no matter how optimistic that sounds.

[–] Linkerbaan 1 points 10 months ago (2 children)

The timing of years of growth stopping directly after large boycotts for supporting israel is suspicious.

Are companies not targeted by these boycotts facing similar sales drops currently?

[–] [email protected] 2 points 10 months ago (1 children)

You live in a very unrepresentative bubble if you think the boycotts have anything to do with this. It's a fringe movement at best, and if it's going to have an impact it will be from richer consumers who can better afford to choose their spending habits.

It's wages not keeping up with inflation levels not seen in the West since the '80s. Simple as.

[–] 13esq 1 points 10 months ago* (last edited 10 months ago)

Good question, I don't know the answer. I can only really say anecdotally that I'm feeling the cost of living crisis in the UK, I've absolutely cut back on non-essential spending and that I wouldn't be surprised if many others have done the same.