2023-12-05 06:04:00
Hoy 03:04
The actions of Starbucks Corp. are on track for a record losing streak amid growing concerns that coffee giant’s sales have cooled in the last weeks.
The stock had fallen as much as 2.4% on Monday, marking an 11th consecutive session of decline, in what would be the longest decline since Starbucks’ stock market debut in 1992. In total, the drop has erased 10% of its market value, a decrease of almost US$12 billion.
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Starbucks sales
Third-party sales data indicated a “material slowdown” at Starbucks in November, following the coffee giant posted strong comparable sales growth of 8% in the fiscal fourth quarter, analyst at Starbucks wrote in a note Monday. JPMorgan Chase & Co. John Ivankoe.
Ivankoe lowered its first-quarter U.S. comparable sales estimate to 4% growth compared with the same period a year earlier, to reflect what might be a less successful holiday promotion than the fall Pumpkin Spice Latte event. The analyst projected a 6% increase in domestic quarterly sales at comparable stores.
Starbucks Stock
Starbucks shares rose in the first half of November following the company reported quarterly results that beat expectations and presented better-than-expected sales outlook for fiscal 2024. But shares have fallen in the past two weeks amid concern regarding “still sluggish China data” and sales trends, according to Ivankoe, who has an overweight rating on the stock.
Analyst Nick Setyan of Wedbush Securities Inc. said investors are nervous that U.S. comparable sales will fall short of consensus in the current quarter as credit card data has indicated a slowdown in sales. last three weeks. Setyan has a neutral rating on Starbucks, calling the stock one of the most sensitive to signs of consumer weakness.
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Sales trends in the snacks and coffee sector have slowed on a weekly basis over the seven-day period to November 19, according to data-driven research firm M Science. The sales slowdown was driven by weaker trends at Starbucks, analyst Matthew Goodman wrote in a note dated Dec. 1. This is the third consecutive week of slowing trends amid recent boycotts and labor strikes, such as Red Cup Day (November 16), which affected up to 200 locations in the US.
Starbucks shares have fallen 1.9% this year in contrast to the S&P 1500 Composite Restaurants Index’s 11% rise.
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