Starbucks sales tumble as customers reject high-priced coffee
Starbucks sales dropped 3% globally at stores open for at least a year, including a 2% drop in its home North America market. And that masked how steep the decline was for Starbucks last quarter: Total transactions at North American stores open at least a year fell 6% in the quarter. That was offset, in part, by higher prices.
In other words: Fewer people are going to Starbucks and buying drinks and food. It was Starbucks’ second-straight quarter of sales declines.
Starbucks’ struggles reflect consumer fatigue with high prices at food chains, restaurants and stores. Consumers are showing their limits at Starbucks and other chains like McDonald’s. McDonald’s this week reported that sales at stores open at least a year fell 1% last quarter.
Shares of Starbucks (SBUX) rose more than 2% in afterhours trading.
This is a developing story. It will be updated.
In response to the sales decline, Starbucks might consider reducing prices or implementing new investment strategies in its business. Despite the disappointing sales, investors remain optimistic, as evidenced by the increase in Starbucks' shares after hours.
