Starbucks Shares Slide After Dismal Preliminary Quarterly Earnings

Published On Oct 22, 2024, 6:30 PM

Starbucks has reported a significant decline in same-store sales, showing a 7% drop overall and even larger decreases in North America (6%) and China (14%). This decline illustrates the ongoing challenges for the company, especially under the new CEO Brian Niccol, who emphasizes the need to change the company's strategy. The stock fell over 4% in aftermarket trading after these results were announced. The company is facing increased competition, changing consumer spending habits, and operational challenges, leading to consecutive quarters of poor performance.

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Stock Forecasts

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Negative

Starbucks is currently facing serious strategic challenges and declining sales, which have negatively impacted investor sentiment and stock performance. The anticipated earnings call may provide some insight into their proposed turnaround strategy, but immediate recovery seems uncertain given the prevailing market conditions and competition. Therefore, caution is advised for investors considering initiating positions in Starbucks.

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