Starbucks (SBUX) saw its worst post-earnings performance since 2000 last week after its second quarter earnings fell short of Wall Street’s estimates. Following the disappointing results, former CEO Howard Schultz wrote on LinkedIn, “The company’s fix needs to begin at home,” pointing to US operations as “the primary reason for the company’s fall from grace.” Yahoo Finance Senior Reporter Brooke DiPalma breaks down how both Schultz and the Street are losing confidence in the beverage giant.
All eyes are on Starbucks’ pricing strategy as sales struggle. CFO Rachel Ruggeri told Yahoo Finance that the company has no plans to lower its prices despite analysts’ skepticism that Starbucks will be able to successfully course-correct. The company pointed to initiatives like menu innovation and in-app offerings to get consumers back in stores; however, DiPalma warns, “many are skeptical that this is just not enough.”
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They need to offer low calorie, low sugar drink alternatives. I don’t want diabetes. 1 typical drink is 50 grams of sugar even with non dairy alternatives.
Facts, it’s like a candy bar in a cup.
Candy bars in a cup would sell like wildfire if they were priced right
@@VideoSnipsChannel that’s hilarious, concerning and probably true 🥹
Because Americans care about a healthy diet
@@Viv8ldi 😂🤣
I won’t buy a Starbucks beverage but I might buy some of their stock with my personal spending $ if it keeps with the nosedive.
Too greedy !
Stupid greedy price hikes.
Price hikes in food happen because the price to make food has increased.
Food is more expensive to make because fertilizer is more expensive, livestock feed is more expensive, and machinery operation is more expensive.
Fertilizer is more expensive because natural gas is more expensive.
Livestock feed is more expensive because coal is more expensive.
Machinery operation is more expensive because oil is more expensive.
If you want to bring down the cost of food, you have to bring down the cost of fossil fuels.
To bring down the cost of fossil fuels, you have to stop regulating/taxing it to such a high degree.
Energy = wealth
Another Iger in the making! No one can help a sinking ship. Even past CEOs with visions of grandeur!
2022, 23.7 billion in profit. 2023, in Canada, implemented tipping. Not only is the coffee overpriced, it’s not always good. Not to mention, their food is horrible. Was easy to quit. Used to go twice a day, but I’m not paying your employees salaries to pick up a coffee in a drive-thru.
Totally agree. The tipping situation is ridiculous. Why am I paying the wage of a fast food worker?
I never buy Starbucks.
A location near me remodeled, kept same stand alone building, but removed ALL seating. Never went back and heard their sales went off a cliff. For a coffee company, they lost their way with (hot) coffee beverages. How much of their beverage menu now is anything but coffee? 😔
Sbux needs to make semiconductors
😂😂 Ahaha join the bandwagon
Burnt coffee does not make a customer happy… I brew high quality coffee for $.50/pot – I’ll save the difference for my retirement.
I have a daily SBUX cold brew habit, but I make a Trenta last 3-4 days – price was $3.75 in 2020, now $5.45 for black coffee.
If yoo want a cup of coffie go to McDonalds
An RN friend of mine has a Master’s Degree 📜. Coffee ☕️ of choice is Dunkin Donuts 🍩!
@@bobdenton1 I don’t understand you post
@@user-vb8yf8be3l My point: Smart people don’t go to Starbucks.
@@bobdenton1 I agree
@@bobdenton1a degree doesn’t make a person smart. The new college grads at work can’t even use a copier. Nor can add with out a calculator.
Hello, boycott 🤟😌 thank you! How’s MacDonald’s doing btw? (honestly I don’t have update of McDo atm)
MickeyDs coffee is better.
he is right. The store experience sucks. Baristas don’t want to work there. They work slow. They don’t care. And it shows.
The tipping situation is ridiculous. Please Starbucks turn off the tipping suggestion at the pay point.
I prefer dunkin to Starbucks a, cheaper b, the employees don’t act like they hate working their – I don’t need people sucking my ass when taking my order be at least neutral/poker face c, dunkin has deals on the app and I don’t need to preload money
No tips.
All the money donated to the IDF…boycotts working?
Who in the hell wants to pay $6-7 for a coffee and that’s not even made right.
Plus tip.
Boycott is working!
What boycott?
Why didn’t he access these qualities before selecting a CEO?
Overpriced burnt coffee
I buy it when the kids on the bus buy me gift cards. That’s it. Otherwise no thanks
Tip or no tip😅?
bought a starbucks coffee almost every day. Since the Israel support for genocide by Starbucks. will never by a drink from starbucks every again. realized they are a disgrace and a ripoff. $8 for a drink. a scam. theft for flavoured coffee water.
Bean counters ruin everything
With Starbucks’ premium pricing, consumers naturally expect a higher level of quality and service from the brand.
Plus tipping is over the top.
$7-10 for a shitty coffee
China wants to learn coffee, then push all foreign coffee companies out. They are already doing it.