$SBUX
Added 2024-07-31 08:58:57 +0000 UTCReported their earnings yesterday and it was a double miss, making it 3 misses in a row now and the share price perfectly reflects this bad news.
$SBUX have given commitments to expand into smaller cities to help growth but I think the big issue is the product, the coffee isn't great, it's snacks are not fresh and their Frappa-nonsense-ccinos are laced with sugar, so they are seen as treats and not a coffee option.
There are plenty of economies of scales here and they offer wifi and have usually the stores are large but I have noticed a trend of standing only stores with no chairs or tables....this dilutes the product for me, I would only go to starbucks if I am able to get work done while i'm there, I am not going for their tasty coffee!
No changes to the chart and I believe with this current set up, we will still see a move down to the blue line or 0.78 Fib at $66-$68.
Comments
I think the majority of the problem is the consumer. Consumers are hurting right now with high interest rates and inflation. The cost of living as gone up substantially since 2021 and I think consumers are just pulling back on spending or simply just can't afford the luxury to be getting $6+ coffees every day.
NR15
2024-07-31 13:27:34 +0000 UTCI like the coffee. Maybe it has just matured and made some bad deals and too many locations
AL
2024-07-31 13:12:01 +0000 UTC
