Starbucks stock plummets 16 percent amid sales drop, boycotts

Economy

Published: 2024-05-06 15:29

Last Updated: 2024-06-16 21:36


Starbucks drinks
Starbucks drinks

Starbucks' shares plummeted, almost 16 percent, after failing to make as much money as they hoped in the last three months. The value of the company went down by about 35 percent in the past year.

The company's key markets, the US and China, experienced significant weakness during the quarter. In the US, same-store sales fell 3 percent, while in China, they dropped 11 percent.

The company attributed this decline to economic concerns, weather impacts, and changing consumer behavior, which many experts attributed it to recent calls for boycotts in light of Starbucks' perceived support for the Israeli Occupation who has been attacking Gaza since October 2023.

To turn things around, Starbucks plans to improve efficiency in the US by reducing wait times and enhancing product availability. It's investing in new technology to speed up orders and enhance customer experience.

In China, Starbucks is focused on digitizing stores, offering local menu items, and expanding in lower-tier cities.

While Starbucks has a solid plan, challenges remain. In the US, consumer spending is weakening, and in China, competition is fierce.