** Starbucks: Surviving the Turbulent Stock Market with a Combat-Ready Strategy**
Investment possibility in Starbucks following the coffee company's share price drop?
**Find out if the American coffee titan stands a fighting chance as it weather's the storm of plummeting stock prices.
© monticelllo/Getty Images By Nicolas Gallant Street-Smart Economist, Crafty Financial Analyst, Unyielding Technician Published on
Starbucks Suffers a Devastating Blow in the Stock Market. Ugh, here we go again. Since early March, the American coffee behemoth has taken a 30% knee in the stock market, yawn. While Starbucks grapples with rival brands, slumping sales, diminishing dividends, and the dip in foot traffic in their bread-and-butter American market, shareholders aresimply shaking their heads. But, wait, don’t stone the man just yet. As Pascal Malotti, a sharp-witted Paris Dauphine professor and Valtech’s strategy director for France points out, the average ticket for Starbucks sales in the US has actually experienced a 3% boost.
Starbucks Takes a Lickin' but Keeps on Tickin', Right? Not so fast, buckaroo. Malotti claims that Starbucks' core issues remain unaddressed, and if it continues to sit on its hands, the coffee behemoth will struggle to produce satisfactory results. The infamous Pumpkin spice latte, which Malotti essentially calls the sugar doughboy of drinks, is a perfect example of the health time bomb ticking beneath the surface of Starbucks' menu. Pascal opines, "If Starbucks doesn't shake things up and start putting wellbeing and lifestyle at the forefront, it's as good as dead."
200,000 Pens Seek Attention: Starbucks' Unconventional Strategy for Its Tribe. Starbucks boasts a formidable global network of stores, with even more planned for China. However, Malotti questions Starbucks' relevance in this digital age. "If most orders are made through the online platform or apps like UberEats, how can Starbucks remain the third perfect space between work and home?" Malotti inquires with an air of skepticism. Furthermore, while Starbucks commands a hefty price tag, the customer experience doesn't always meet expectations, and cheaper competitors have taken notice. Malotti wisecracks, "Some Starbucks stores look like we've hopped into the office furniture department of Office Depot. It's drab and outdated."
Escape the Darkness and Find the Starbucks of Tomorrow. Malotti does see a glimmer of hope for Starbucks. The company has shown success in European markets such as France and Italy, where tourists and youngsters favor the brand. Malotti adds, "Starbucks has displayed satisfactory commercial performance in the Old World, a market where it continues to climb the mountain." The Starbucks app is another powerful asset for the coffee giant, offering a smoother ordering process and increasing the average order size. However, Malotti cautions against investing in American stocks, particularly Starbucks' stock, as European and Chinese stocks currently offer better value for money.
See its publications Around this article
- Stock Market
- Bold Buying Decisions
- Coffee Culture
- Despite the 30% drop in the stock market, Starbucks' average ticket sales in the US have shown a 3% growth, offering a potential indication of the company's resilience.
- To ensure continued growth and sustainability, Starbucks needs to reconsider its strategies in the face of the changing landscape, focusing on healthier menu options, enhancing customer experience, and addressing its digital relevance in the market.
