Starbucks shares sink 12% as coffee chain slashes 2024 forecast amid same-store sales drag

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.

13esq,

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,
@Linkerbaan@lemmy.world avatar

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?

13esq,

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.

azertyfun,

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.

Linkerbaan,
@Linkerbaan@lemmy.world avatar

Yeah I’m in that CEO Bubble

McDonald’s and Starbucks blame the Israel-Hamas war for slower sales — and the recovery might take a while

CosmoNova,

Those poor share holders. Why won‘t anyone think of the share holders?

HeyJoe,

He’s full of shit and they will continue to blame it on the wrong reasons.

Jakdracula,
@Jakdracula@lemmy.world avatar

I don’t like their coffee, but I commend them for their success in building so many stores that some are directly across the street from one another.

livus,
livus avatar

That's such a hellscape.

They opened in Australia and New Zealand with a reasonable number of stores but had to close a bunch of them because their coffee's shit.

PP_BOY_,
@PP_BOY_@lemmy.world avatar

I don’t like their coffee, but it’s pretty cool that they’ve undercut local businesses and monopolized entire towns with their slavery coffee

My guy what are you saying? How is anything Starbucks has done commendable?

Jakdracula,
@Jakdracula@lemmy.world avatar

I guess I wasn’t clear.

The dense clustering of Starbucks locations, often situated across the street from one another, has led to an oversaturation that has negatively impacted their sales.

PP_BOY_,
@PP_BOY_@lemmy.world avatar

Ah, so you were being sarcastic? I am severely autistic and sometimes don’t register it

Jakdracula,
@Jakdracula@lemmy.world avatar

Yes.

I was being sarcastic, I do not like Starbucks whatsoever

SatansMaggotyCumFart,

Why would Biden do this to Starbucks?

Linkerbaan,
@Linkerbaan@lemmy.world avatar

Boywhat

  • All
  • Subscribed
  • Moderated
  • Favorites
  • •
  • business@lemmy.world
  • Durango
  • DreamBathrooms
  • thenastyranch
  • magazineikmin
  • tacticalgear
  • khanakhh
  • Youngstown
  • mdbf
  • slotface
  • rosin
  • everett
  • ngwrru68w68
  • kavyap
  • InstantRegret
  • JUstTest
  • cubers
  • GTA5RPClips
  • cisconetworking
  • ethstaker
  • osvaldo12
  • modclub
  • normalnudes
  • provamag3
  • tester
  • anitta
  • Leos
  • megavids
  • lostlight
  • All magazines
    •