Analysis of Starbucks Stock Plunge and Turnaround Plan in Fiscal Q2 Earnings
Monday, 6 May 2024, 10:22
Troubles in China and the U.S.
Shares of Starbucks (NASDAQ: SBUX) fell nearly 16% after weak quarterly results from the U.S. and China markets.
- In the U.S.: Same-store sales declined 3%, traffic fell 7% but average ticket price rose 4%.
- In China: Comparable-store sales dropped 11% with reduced traffic and ticket price.
Turnaround plan
Starbucks aims to improve throughput, introduce new menu offerings, and enhance customer engagement in the U.S. and China markets.
The company will focus on technology, innovation, and expanding store locations in China.
Is it time to buy the dip? Starbucks' long-term value remains solid despite near-term challenges. The stock is trading at a low valuation, indicating a potential opportunity for investors.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.