Starbucks reported a sharp drop in global sales
Global sales at US coffee chain Starbucks fell 7 percent in the July-September quarter, the third consecutive quarter of declines. At the same time, the income from each share is 25% compared to the same period last year.
Coffee chain Starbucks reported preliminary results for the fourth quarter of fiscal 2024, which ended on September 29.
Thus, Starbucks' earnings per share decreased by 25% compared to the same period last year. The company's global comparable network sales also fell 2 percent in fiscal 2024. Starbucks also dropped its financial guidance for 2025, citing unexpected changes in the company's top management.
Starbucks CFO Rachel Ruggeri, who was also included in the report, said that rising investment had not affected the decline.
Efforts to increase efficiency continued as planned. However, they were not enough to eliminate the consequences of recession. The company has developed a plan to revive the business, but it will take time, he said.
Starbucks' results were negatively impacted by boycotts against international companies that support Israel
Starbucks, one of the companies that has faced protest and boycott campaigns due to Israel's attacks on the Gaza Strip, has shown negative financial results for the past three quarters.
The coffee shop chain lowered its full-year sales forecast for the period from October to December last year, partly due to the negative impact of sales at stores in the Middle East. In the January-March period, Starbucks' revenue fell 2 percent, and the company's global sales fell 4 percent, the steepest decline in four years. Starbucks also reported a 3 percent decline in global sales in the April-June period this year.
According to Boycott's source, Howard Schultz, the majority shareholder of Starbucks, is owned by a Zionist who invests heavily in Israel's economy and security system. In particular, he raised $1.7 billion in cyber security startup Wiz.
In turn, Starbucks has denied any involvement in war and violence.
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Starbucks' market value has fallen by more than $12 billion in 20 days to below $110 billion.
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In response to the boycotts, Starbucks said, "Our position is clear. We stand with humanity."
