Why is Starbucks stock crashing?
Factors Hurting SBUX In third-quarter fiscal 2025, the operating margin contracted sharply by 660 basis points year over year to 10. Heavy investments in labor hours, store transformation initiatives, and leadership programs are weighing on profitability, with earnings per share falling 45% year over year. SBUX stock could reasonably reach $101/share by September 2027, based on our valuation assumptions. This implies a total return of 21.
What issues is Starbucks facing right now?
Globally, Starbucks faces significant challenges, particularly in China, where its ambitious 2022 expansion plan to open one store every nine hours has faltered under intense competition from local rival Luckin Coffee, which now ranks 19th among the world’s most valuable restaurant. Strengthen and scale digital by doubling its 75 million global Starbucks Rewards members within five years and expanding digital and technology collaborations to elevate the partner and customer experience. Become more global by accelerating store expansion to 55,000 globally by 2030.Regardless of what happens after the report, Starbucks seems able to bounce back and reward shareholders over many years. Not only is it rebuilding its brand, but it also still expects to double its U. S.Global political tensions are spilling fast into. Starbucks Corporation, as the company has lost approximately 11 billion dollars in value, erasing 9.An investor who bought $1,000 worth of starbucks stock at the ipo in 1992 would have. The all-time high starbucks stock closing price was 114. July 26, 2021. The starbucks 52-week high stock price is 117.
Is Starbucks in danger of closing?
In the statement released last week, the CEO added that Starbucks has opened numerous coffeehouses over the past year and the overall company-operated count in North America will decline by about 1% in fiscal year 2025 after accounting for both openings and closures. Starbucks recently announced that the company would be closing 1% of its North American stores by the end of 2025, citing financial performance as one of the reasons for the closures. In addition, the company shared that 900 non-retail positions would be eliminated.Starbucks Corp. North America a 2% raise this year as the coffee chain looks to pull off a high-stakes turnaround and manage expenses. The uniform increase is a shift from past years, when raises were awarded at managers’ discretion.Starbucks has confirmed the removal of thirteen drinks from its menu on March 4th, 2025. The news came from the brand’s CEO Brian Niccol amongst a broader plan to shrink its menu 30% by the end of this year. Amongst the cuts are a variety of drinks, the majority of them Frappuccinos.Starbucks recently announced that the company would be closing 1% of its North American stores by the end of 2025, citing financial performance as one of the reasons for the closures. In addition, the company shared that 900 non-retail positions would be eliminated.
Is Starbucks overvalued?
Result: OVERVALUED Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Starbucks. Our Discounted Cash Flow (DCF) analysis suggests Starbucks may be overvalued by 67. Find undervalued stocks or create your own screener to find better value opportunities. On September 25, 2025, Starbucks announced a massive $1 billion restructuring plan that will cut 900 corporate jobs and close about 1% of its North American stores (roughly 200 locations).Market cap: ₹8. Trillion As of October 2025 Starbucks has a market cap of ₹8. Trillion. This makes Starbucks the world’s 210th most valuable company by market cap according to our data.Starbucks recently announced that the company would be closing 1% of its North American stores by the end of 2025. Starbucks recently announced that the company would be closing 1% of its North American stores by the end of 2025, citing financial performance as one of the reasons for the closures.Starbucks net worth as of October 26, 2025 is $97. B. Interactive chart of historical net worth (market cap) for Starbucks (SBUX) over the last 10 years.Starbucks has a consensus rating of Moderate Buy which is based on 13 buy ratings, 6 hold ratings and 1 sell ratings. The average price target for Starbucks is 100.
Why did Starbucks lose $12 billion?
Over the past month, Starbucks’ market cap has plunged some $12 billion after a walkout on its all-important Red Cup Day and a public spat over the Israel-Hamas war with the union representing its baristas. After controversial conflicts over abortion, support for the LGBTQ community, and unethical sourcing, Starbucks’ controversy over the war in Gaza was the last straw for protesters. This led to the surge of boycotting, causing Starbucks to lose $11 billion within a few weeks after Oct.Why the Boycott Matters When Starbucks sued its own union for a pro-Palestine post, millions of people worldwide chose to stop buying its lattes. In Malaysia, Starbucks’ operator reported a 36% revenue collapse and a $69 million loss, directly blaming the boycott. Malaysia have already shut down.
Why boycott Starbucks in 2025?
Activists from the Palestinian solidarity movement have mobilized against Starbucks due to its support for Israel since 2023. This led to widespread calls for boycotts, amplified by social media campaigns and on-the-ground protests. After issuing Palestinian support and solidarity and condemning Israel, a global boycott began, in addition to a pause in hosting Pride decorations in stores. For several months, Starbucks has been subjected to lawsuits for policy changes against workers and customers of the Black and LGBTQ+ community.Starbucks’ closures were driven by consumers who moved away from urban centers during the Covid-19 pandemic, said RJ Hottovy, an analyst at Placer. The chain is now shedding leases in areas that have notably less business.Starbucks is attempting a comeback under Niccol after years of struggles, strategy missteps and a revolving door of CEOs. Starbucks’ sales at stores open for at least a year have dropped for six straight quarters. Its stock has dropped roughly 9% so far this year.The new rules are part of a larger effort to improve Starbucks’ cafe experience and deter homeless people and non-paying customers who have come to use Starbucks solely for shelter and bathroom access – but they reverse a policy that was put in place after one of the company’s biggest-ever PR disasters.