Starbucks shares hit two-year low as China, US demand clouds outlook | The Business Standard
Skip to main content
  • Latest
  • Epaper
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Sunday
June 22, 2025

Sign In
Subscribe
  • Latest
  • Epaper
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SUNDAY, JUNE 22, 2025
Starbucks shares hit two-year low as China, US demand clouds outlook

USA

Reuters
05 May, 2024, 09:50 am
Last modified: 05 May, 2024, 09:54 am

Related News

  • Starbucks workers expand strike in US cities including New York
  • New Mexico Starbucks nicknamed 'Charbucks' after arson attacks
  • Starbucks earnings are a warning: Take boycotts seriously
  • Starbucks, Coke boycotts over Gaza war are boosting Middle East rivals
  • McDonald's CEO says several markets in Middle East impacted by conflict

Starbucks shares hit two-year low as China, US demand clouds outlook

Price hikes taken last year have forced customers to ditch cafes and restaurants and instead drink coffee at home, hurting business for chains such as Starbucks

Reuters
05 May, 2024, 09:50 am
Last modified: 05 May, 2024, 09:54 am
A cup of Starbucks coffee sits on a table in a cafe in central Hong Kong January 16, 2011. REUTERS/Joel Boh/File Photo
A cup of Starbucks coffee sits on a table in a cafe in central Hong Kong January 16, 2011. REUTERS/Joel Boh/File Photo

Shares of Starbucks fell 15% to their lowest in nearly two years on Wednesday (1 April), after the coffee chain cut annual forecasts on persistent weak demand from inflation-weary US customers and a slower-than-expected economic recovery in China.

Price hikes taken last year have forced customers to ditch cafes and restaurants and instead drink coffee at home, hurting business for chains such as Starbucks.

The company reported a fall in same-store sales for the first time in nearly three years.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

"The inability to stop the traffic leakage from the early signs of pull-back in November to date and the worsening macro and competitive dynamics in China may suggest prolonged challenges and no evidence of light at the end of the tunnel," Danilo Gargiulo, senior analyst at Bernstein, wrote in a note.

Deutsche Bank downgraded its rating on Starbucks to "hold" from "buy", while at least 12 brokerages cut target price on the stock.

Starbucks expects full-year comparable sales — both globally and in the US — to be in the range of a low single-digit decline to flat, compared with its previous range of 4% to 6% growth.

It also cut per-share profit growth forecast to between flat and low-single digits, versus its earlier range of 15% to 20% growth.

"Many customers are being more exacting about where and how they choose to spend their money, particularly with stimulus savings mostly spent," CEO Laxman Narasimhan said on a post-earnings call.

"We saw this materialise over the quarter as customers made the trade-offs between food away from home and food at home," he added.

Jefferies' analysts said they were sceptical about the planned slate of new products this year and a re-focus on core menu, value, promotions and loyalty would be more prudent for Starbucks.

Starbucks' forward price-to-earnings multiple, a common benchmark for valuing stocks, is 20.88, compared with 21.54 and 20.83 for industry peers McDonald's and Restaurant Brands, respectively.

Economy / Top News

Starbucks

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • A rescuer evacuates a dog from an impacted site in Tel Aviv, Israel, after a missile attack from Iran on June 22, 2025. REUTERS/Tomer Appelbaum
    Iran vows to resist US attacks 'with all its might', launches missile strike on Israel
  • Photo: Courtesy
    Bangladesh, China, Pakistan pledge to deepen trilateral cooperation
  • Illustration: Duniya Jahan/TBS Creative
    Tk7.90 lakh crore budget approved, black money whitening provision dropped

MOST VIEWED

  • Dhaka Medical College students demonstrate over five demands in front of the institution's main gate in Dhaka on 21 June 2025. Photo: Courtesy
    Dhaka Medical College closed indefinitely amid protests over accommodation, students ordered to vacate halls
  • US Ambassador Dorothy Shea. Photo: Collected
    US ambassador mistakenly says Israel ‘spreading terror’
  • Infographic: TBS
    Airlines struggle to acquire planes amid global supply shortage
  • Muhammad Fouzul Kabir Khan. Sketch: TBS
    Energy prices fall as import arrears reduced to $700–800m: Adviser
  • A US Air Force B-2 Spirit Stealth Bomber (C) is flanked by 4 US Marine Corps F-35 fighters during a flyover of military aircraft down the Hudson River and New York Harbor past York City, and New Jersey, US 4 July, 2020. REUTERS/Mike Segar/File Photo
    B-2 bombers moving to Guam amid Middle East tensions, US officials say
  • A group of students from United International University (UIU) block the main road in Dhaka’s Bhatara Notun Bazar area protesting the expulsion of 26 final-year honours students on Saturday, 21 June 2025. Photo: Rajib Dhar/TBS
    Students block road at Notun Bazar in protest against expulsion of 26 UIU students

Related News

  • Starbucks workers expand strike in US cities including New York
  • New Mexico Starbucks nicknamed 'Charbucks' after arson attacks
  • Starbucks earnings are a warning: Take boycotts seriously
  • Starbucks, Coke boycotts over Gaza war are boosting Middle East rivals
  • McDonald's CEO says several markets in Middle East impacted by conflict

Features

PHOTO: Akif Hamid

Honda City e:HEV debuts in Bangladesh

1h | Wheels
The Jeeps rolled out at the earliest hours of Saturday, 14th June, to drive through Nurjahan Tea Estate and Madhabpur Lake, navigating narrow plantation paths with panoramic views. PHOTO: Saikat Roy

Rain, Hills and the Wilderness: Jeep Bangladesh’s ‘Bunobela’ Run Through Sreemangal

4h | Wheels
Illustration: TBS

Examophobia tearing apart Bangladesh’s education system

17h | Panorama
Airmen look at a GBU-57, or Massive Ordnance Penetrator bomb, at Whiteman Air Force Base in Missouri, US in 2023. Photo: Collected

Is the US preparing for direct military action in Iran?

1d | Panorama

More Videos from TBS

Iran-Israel retaliate after US attack

Iran-Israel retaliate after US attack

36m | TBS World
Targeted fallout: US attack damages these nuclear facilities

Targeted fallout: US attack damages these nuclear facilities

1h | TBS World
Fordow under fire? US-Iran split over nuclear site impact

Fordow under fire? US-Iran split over nuclear site impact

2h | TBS World
Is Israel's main goal to remove Ayatollah Khamenei?

Is Israel's main goal to remove Ayatollah Khamenei?

3h | Others
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net